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| BTS / Courtesy of KB Kookmin Bank |
Korean banks are increasingly turning to idol groups, hiring them as company spokespeople amid a growing demand to associate their brand with "young and hip" vitality to maximize their appeal with a broader, younger demographic ― viable future customers.
KB Kookmin Bank has led what is now an industry norm by hiring popular boy band BTS as its spokesmen in January 2018.
"It was initially met with a strong backlash when a group of bank officials suggested hiring a young pop band to represent the bank," a KB official said.
"It was understandable given a financial services firm needs to develop a brand image associated with trustworthiness and credibility, qualities that are less associated with young entertainment figures."
Months after, hiring the then budding boy band with less global recognition in hindsight was a "spot-on" business move that increased the bank's profile with international audiences, in line with digitization and globalization, its two initiatives.
"We think BTS is the perfect model that symbolizes both. We are glad that the bank is associated with a positive image along with the band's success with a broad global fan base."
The "BTS effect" indeed translated into an increase in the number of people seeking the bank's financial products here.
The number of holders of KB's installment savings account ― KB X BTS ― jumped to over 180,000 in 2018, a near six-fold increase compared to other regular savings account from a year earlier.
The number is simply "remarkable," given the bank opens about 30,000 accounts a year.
The target-specific marketing strategy boosted sales, according to the official.
The bank offered an interest rate that is 0.1 percentage point higher than the usual 1.7 percent fixed rate on the band members' birthdays and the day the group was established.
Eight days when such "bonuses" are given, the amount installed with the bank increased over five-fold than usual.
"We extended our contract with BTS for one more year in 2019. We hope the decision will help us make the desired impression with global customers," the official said.
Following KB, many other banks are hiring popular idol groups to represent them, seeking similar effects in the domestic as well as global market.
Woori Bank is in final talks to hire girl group BLACKPINK as company models in 2019.
Shinhan, whose contract with boy band Wanna One expired in 2018, is reviewing possible candidates that will continue with the excellent job performed by the now-disbanded 11-member group.
In March 2018, the bank received 5,500 requests ― the daily maximum ― to issue SOL Deep Dream Check Card featuring 12 different versions carrying the 11 members' images.
"We definitely see changes in values represented by the bank's models. A traditional, safe way was to go for a man with a classic suit with rather stern look on his face and a vibe full of seriousness, but becoming more appreciated are qualities such as innovation, vitality, challenge and adventure, best represented by some of the idol groups," a Shinhan official said.
KEB Hana Bank hired, Kim Haon, a "High School Rapper 2" winner, while NongHyup Bank hired rookie girl group Gong Won So Nyeo (GWSN).
NongHyup said GWSN will help fans in their 20s, 30s or younger take an interest in agriculture and rural affairs, a long neglected industry characterized by old people toiling in labor-intensive and grueling activities far from fun.
"The primary goal for any company to hire well-known public figures is to maintain and improve a positive brand image and recognition. Hiring young idol groups including BTS in that sense can lead to a resounding success," according to a public relations professor at a Seoul-based university.
