SBI Savings Bank wins the "Savings Bank Grand Prize" at the Korea Financial Awards
SBI Savings Bank stands out as a leader in fulfilling the original mission of savings banks: revitalizing low-income finance. Its commitment is evident across numerous initiatives designed to support financial inclusion and consumer well-being.
A key area of focus is easing the interest rate burden on ordinary people through accessible mid-interest rate products. SBI Savings Bank boasts the industry's highest volume in this category, providing over ₩1 trillion in mid-interest rate products annually, with ₩2.3651 trillion handled in 2022 and ₩1.9178 trillion in the first eleven months of 2023. The innovative "CIDA" product, launched in 2015 with an average annual interest rate of 9.9%, offered a significantly more affordable option compared to prevailing market rates for savings bank loans (25.8%), credit cards (15.7%), and cash services (17.16%). This commitment to fair lending has helped improve the overall image of savings banks.
Further demonstrating its dedication to financial inclusion, SBI Savings Bank actively operates the "Sunshine Loan" program for low-income borrowers through its 17 branches nationwide. It leads the savings bank sector in providing this essential service to vulnerable populations with limited credit access. The bank also champions consumer rights by actively accepting and processing interest rate reduction requests, with over 27,000 applications received and ₩2.8 billion in interest reductions granted in the past year. This responsiveness puts SBI Savings Bank on par with major commercial banks in its commitment to customer affordability.
Embracing financial innovation, SBI Savings Bank has invested heavily in FinTech. Recognizing the importance of digital transformation, the bank established a dedicated FinTech team in 2017, recruiting experts from leading FinTech companies and credit rating agencies. This investment has led to improvements in fraud prevention, a paperless work environment, and a refined credit rating system, resulting in a lower delinquency rate and a robust BIS ratio of 16.88%, significantly exceeding the recommended 11%. The FinTech team continues to develop customer-centric solutions leveraging new technologies.
SBI Savings Bank also prioritizes customer convenience through its advanced mobile banking services. Pioneering mobile banking within the savings bank sector in 2012, the bank continues to refine its digital offerings. The user-friendly "CIDA" Bank app, launched in 2019, has achieved over 3.04 million downloads and exemplifies the bank's focus on accessible digital banking. Future plans include developing an integrated loan platform, chatbots, and other innovative features comparable to leading internet banks.
Beyond its core business, SBI Savings Bank is committed to revitalizing the entire savings bank sector. Through social media campaigns and other initiatives, the bank promotes a "Save!" culture and encourages greater utilization of savings bank services. Furthermore, a dedicated customer protection team and civil service center prioritize consumer rights and address complaints effectively. The bank's commitment extends to social responsibility, with the SBI Hope Sharing Volunteer Group conducting various community support activities, both domestically and internationally through the SBI Hope Sharing Global Expedition program. In all its endeavors, SBI Savings Bank strives to fulfill its social mission and contribute to the financial well-being of its customers and the broader community.
Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on LinkedIn, or directly here on the platform.
We also provide a daily short-form Japan FinTech Observer news podcast, available via its Podcast Page. Our global Finance & FinTech Podcast, “eXponential Finance” is available through its own LinkedIn newsletter, or via its Podcast Page.
Should you live in Tokyo, or just pass through, please also join our meetup. In any case, our YouTube channel and LinkedIn page are there for you as well.
