Internet banking transactions in Korea hit record high in 2018

The number of transactions broke the 100-million mark for the first time.

The number and value of Internet banking transactions in South Korea hit a record high in 2018, reports Yonhap News Agency citing data from the central bank. 

The average number of transactions processed via the Internet rose 25.3% YoY to 118.97 million, crossing the 100-million mark for the first time. The amount also rose to hit nearly $40b (KRW47.5t). 

"The use of internet banking greatly increased in 2018 on the launch of internet-only banks, whilst the use of cash dispensers and automated teller machines (CDs/ATMs) dropped," the Bank of Korea (BOK) was cited in the report. 

Also read: Korea's internet-only banks still sparring for market share

Internet banking accounted for more than half (53.2%) of all bank transactions from 45.4% in the previous year. The amount of money spent by financial institutions to maintain and upgrade their mobile banking systems also hit a record high to $5.44b (KRW6.49t) in 2018, accounting for 8.8% of overall spending for the year.

The use of CDs and ATMs accounted for 30.2% of the total, down from 34.7% in the previous year. The ratio of phone banking also dwindled to 7.9% from 9.9% over the same period. Transactions handled face-to-face at banks also fell to 8.8% from 10.0% in 2017 in what marks the fourth straight year of decline since 2014.