Toss Bank, which is about to officially launch in October, has launched an unconventional product to attract customers. It has challenged Kakao Bank and K-Bank with benefits such as a frequent deposit and withdrawal passbook that gives an interest rate of 2% per annum without any conditions and a check card that provides cashback of up to 46,500 won per month. As soon as we received the pre-registration for the service, more than 100,000 customers came in just one day, and the heat was rising.
Toss Bank announced on the 10th that it is accepting applications for pre-use of the banking service for all Toss users 17 years of age and older. Toss Bank, which is expected to be launched on October 4, plans to provide opportunities to apply for loan products as well as sign up for bankbooks and check cards in the order of prior application. The number of customers who made a reservation for a service experience ahead of others exceeded 100,000 this morning alone. Toss Bank also created the effect of word-of-mouth about the opening of Toss Bank by sharing the pre-registration page with friends so that their turn could be advanced.
Tossbank unveiled products to be introduced after its launch on the same day. As its first product, Toss Bank is offering a Toss Bank passbook at 2% per annum without any conditions. It is a frequent deposit and withdrawal account that pays 2% interest per year without any restrictions on subscription period or deposit amount. If you first open a Toss Bank account with a prior application, 2% interest per annum is calculated and paid monthly from the day you deposit the money.
The interest rate on time deposits of K-Bank and Kakao Bank is 1.40-1.50% per annum, and the interest rate on savings accounts is also higher than 2% per annum. It is the first in the industry to provide products with an annual interest rate of 2%, which can only be found in savings banks, the second financial sector, to a bankbook without any conditions.
Toss Bank is designed so that the debit card can enjoy various benefits without the previous month's performance conditions. If you use your card in the 5 major categories of affiliated stores (coffee, fast food, convenience store, taxi, public transportation), you will receive a daily cashback of 300 won per category immediately after payment (next day for public transportation). You can get up to 1,500 won per day and up to 46,500 won per month (as of the 31st).
Overseas, 3% of the amount used is immediately cashed back regardless of online or offline. Not only remittance fees, but also domestic and foreign automatic teller machine (ATM) deposit and withdrawal fees are unlimited and free. This is the first season benefit that will be applied until January 2, next year, and new benefits will be provided for each season according to customers' consumption patterns.
As Toss Bank is a latecomer following K-Bank and Kakao Bank, it plans to attract users in the early stages of its launch with unconventional benefits. The question is whether the marketing costs are substantial enough to be sustainable. Although it is possible to increase customers in the short term even at a loss, it is expected that it will be difficult to sustainably without increasing capital. The case of Kakao Bank, which has grown in size through a smooth capital increase while K-Bank, the first internet bank, had difficulties in capital increase, represents this. An official in the financial sector predicted, “Toss Bank will be able to continue aggressive marketing only when the initial capital increase process goes smoothly.”
Hong Min-taek, CEO of Toss Bank, said, “We focused on designing products so that customers who entrust their money do not have to compare and ponder which bank is better. “He said.