Korean banks step up game to lure baby boomers

KEB Hana will create a taskforce to focus on premium pension products.

In a bid to win the market share for the 7 million baby boomers or those born post-Korean war from 1955 to 1963 who will kickstart retirement from 2020, Korean banks have been going the extra mile to win the battle, reports The Korea Times..

KEB Hana Bank has created a 15-man taskforce solely focused to the bank’s premium pension products which will offer a one-on-one consulting service for baby boomer customers. Moreover, the bank is looking into doubling the taskforce by end 2019 whilst strengthening its non-face-to-face services to attract more customers.

According to the bank’s data, their assets of customers in their 60s accounted for 41% of the bank's total as of April, up 1 ppt from the same period in 2018 and 2.4 ppt from the same period in 2017.

Other lenders such as Shinhan and KB Financial Group revealed that they have also been furnishing their inter-subsidiary cooperation to boost their pension management capacity.

Data shows that Korea’s population aged over 65 will grow to 680,000 by 2019. and to about 910,000 in 2026. With this, 5.35 million people, or 10% of the country’s entire population are expected to join the pension scheme over the next seven years.