A van designated as a KB Senior Lounge is parked near a welfare center for older adults in Incheon in this undated photo. KB Kookmin Bank's mobile branch makes regular visits to welfare facilities in Seoul and Incheon to provide financial services tailored to older customers. Courtesy of KB Kookmin Bank
Banks are using vehicles such as buses and vans as mobile branches to meet the demand for in-person banking services, as they have reduced the number of their offline branches due to soaring rent costs and declining foot traffic, industry officials said Wednesday.
These mobile branches are equipped with ATMs and other facilities designed to improve financial accessibility for vulnerable customers, including older adults. They primarily visit welfare facilities and other areas with a high concentration of older people.
KB Kookmin Bank operates a total of eight mobile branches, employing two buses and six vans.
Among them, two vans are designated as KB Senior Lounges, a service aimed at tackling the financial exclusion of older adults amid rapid digitalization.
These vans visit welfare centers on a regular basis, providing financial services tailored to older customers.
“We began the service in 2022 in five districts of Seoul with a high elderly population, including Jungnang District, and expanded it to five districts in Incheon last year,” a Kookmin Bank official said. “Further expansion is under review based on ongoing assessments.”
Hana Bank operates six mobile branches, including a 45-passenger bus. Each vehicle is assigned to a designated region of the country to enhance customer convenience, with one vehicle specifically serving foreign workers.
"This year, we plan to operate a new mobile branch focused on retirement pension marketing, traveling to areas with limited financial accessibility to provide product management and pension consultations for retirement pension subscribers," a Hana Bank official said.
The official noted that the bank also plans to replace aging vehicles with hydrogen electric buses, becoming the first in the domestic financial sector to do so, in a bid to contribute to the adoption of eco-friendly vehicles.
Hana Bank employees pose in front of the bank's bus-based mobile branch in this undated photo. Courtesy of Hana Bank
Shinhan Bank, for its part, runs three such vehicles — a large truck, a large bus and a small bus. Woori Bank operates four vehicles, including a 17-ton truck.
During the Lunar New Year holiday last month, major banks operated mobile branches at highway rest areas, offering services such as new bill exchanges (a common Korean practice of exchanging old bills for new ones as gifts for family members), fund transfers and ATM access, to provide convenience for travelers heading to visit family and relatives.
Shinhan Bank set up a mobile branch at the Hwaseong Service Area in Gyeonggi Province. Woori Bank operated one at the Manghyang Service Area in Cheonan, South Chungcheong Province. Hana Bank had its own at the Seoul Meeting Square Rest Area on Jan. 24 and 25.
Kookmin Bank operated its branch at Giheung Service Area in Yongin, Gyeonggi Province, on Jan. 24 from 10 a.m. to 4 p.m.
“Mobile branches offer the advantage of providing banking services to underserved individuals with mobility challenges,” an official from one of the major banks said. “However, such branches have limitations, as they cannot offer the full range of services available at traditional bank branches. Due to their nature, specialized financial consultations and loan services are difficult to provide.”
While unveiling its work plans for 2025, the Financial Supervisory Service said it will enhance the banks’ utilization of mobile branches.
It vowed to review annual mobile branch operation plans and their implementation on a quarterly basis as part of efforts to strengthen support for vulnerable customers, raising expectations that the number of such branches and the scope of their services will expand gradually.
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