"These days, it's tough to run my shop alone, and I have to close it just to go to the bank," said Kim, a 66-year-old goldsmith in Dobong-dong, Seoul. Kim, who uses Shinhan Bank as his primary bank, visits the bank two to three times a week. However, since the local branch was converted into a digital lounge, he must travel to a branch near Suksan Station for in-person consultations.
The distance to the bank is an even greater burden for the elderly. Han, a 77-year-old woman who moved to Dobong-gu this year, walked about 20 minutes to the KB Kookmin Bank near Ssangmun Station. Using public transportation would take a similar amount of time. "There are far fewer banks here than in my previous neighborhood," she said, expressing a feeling of neglect. At 8:55 a.m., seven customers were waiting outside the branch, five minutes before it opened. After opening, the electronic board indicated five people waiting with an estimated wait time of 17 minutes.
According to the financial sector, the number of branches for the four major banks (KB Kookmin, Shinhan, Hana, and Woori) in Seoul decreased from 1,447 at the end of 2019 to 1,037 by the end of June this year, a drop of 410 branches (28.3%). In Dobong-gu, the number fell from 20 to 13, a 35% reduction. Each branch in Dobong-gu serves an average of 6,184 residents aged 65 and older, the highest among Seoul's 25 districts, nearly ten times that of Gangnam-gu, which has 623 seniors. While banks compete to attract elderly clients for asset management, the number of branches for everyday banking is declining, exacerbating financial accessibility disparities across regions.
Kim's shop is surrounded by six apartment complexes, including Dobong Hanshin Apartment, totaling 3,718 households. However, within a 15-minute walk, the only banking facilities available are the Shinhan Bank digital lounge and ATMs from KB Kookmin and SC First Bank. Tasks requiring staff assistance are difficult to complete. The nearest branches of KB Kookmin and Shinhan Bank at Suksan Station are about a 20-minute walk from the digital lounge.
Banks are attempting to fill the gap left by branch closures with digital locations, including Shinhan Bank's 'Digital Lounge,' Woori Bank's 'Digital EXPRESS,' KB Kookmin Bank's 'KB Digital Bank,' and Hana Bank's 'Hana Talk Talk Lounge.' However, digital branches cannot fully replace traditional in-person services.
At the Shinhan Bank digital lounge in Dobong-dong, one manager assisted elderly customers with device usage. Park, an 84-year-old, received help with the authentication process but could not resolve inquiries related to the Seoul Pay mobile service, which requires a mobile app and personal verification for using local currency. This has led many elderly individuals to seek assistance from financial institutions. Meanwhile, the number of on-site managers at the digital lounge has decreased from two to one, and residents report that there are plans to withdraw the remaining staff. At 11:41 a.m., the nearest branch at Suksan Station had 14 people waiting for deposit and utility payment services.
Since March, financial authorities have mandated that banks conduct prior impact assessments and gather local opinions before consolidating branches within a one-kilometer radius. Digital branches must have at least one staff member present to be recognized as a substitute for closed branches. In July, a pilot program began at 20 post offices in rural areas without bank branches, allowing them to facilitate loan consultations and applications for the four major banks. However, this initiative is limited to certain loan products and rural areas, making it insufficient to meet the everyday face-to-face banking needs of seniors in urban areas.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.