Promotional image of "Super SOL," Shinhan's "super app" that integrates its core services within a single application / Courtesy of Shinhan Financial Group

Major Korean financial firms are consecutively launching "super apps" that allow customers to access all their financial services within a single application. This trend represents a strategic move to remain competitive against Big Tech companies and internet-only banks, while also aiming to reduce labor costs through increased digitalization.

Last week, Shinhan Financial Group launched its super app "Super SOL" which consolidates the core functions of its five subsidiaries' apps, including banking, cards and securities. The app's user base surpassed 1 million just five days after its launch.

In 2021, KB Financial Group was the pioneer in launching such a service with "KB Star Banking," which integrated 70 key services. As the first of its kind in the financial services sector, it boasts a monthly active user base of 11 million, ranking it at the top among applications from the top five financial groups.

Woori Financial Group is also gearing up to launch an integrated platform, "New WON," in the second half of 2024. Meanwhile, Hana Financial Group and Nonghyup Financial Group plan to gradually incorporate various new functions into their existing apps.

However, the five major groups are still trailing behind internet-only banks and Big Tech companies in terms of digitalized platforms.

There are growing expectations that the competition to enhance financial platforms will intensify, as the dominance of traditional banks will diminish in the future. This trend is also anticipated to reduce costs as the need for physical branches and staff decreases.

Analysts predict an increase in non-interest income, driven by fees from various financial services offered through these platforms. This includes services like rebalancing of insurance and pensions, as well as providing recommendations for investment fund products.

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