Older adults attend a class on digital financial education at a Seoul branch of Shinhan Bank in this September 2022 photo. Korea Times file

Commercial banks are rapidly introducing services tailored to older adults at their retail branches, recognizing the growth potential of this demographic as the nation is now officially classified as a super-aged society, according to bank officials and market watchers.

Banks, which once viewed offline branches as a last resort for older customers struggling to keep up with the digital era, are now transforming these branches into innovative spaces for sales and marketing. Here, older clients receive high-quality services tailored to meet their specific needs.

The services go beyond just banking and financial services, extending to supporting the emotional well-being of older adults as well.

As digital banking continues to grow and more branches close, banks are adapting their sales strategies to better serve older customers.

A lounge exclusively for older clients is seen at Hana Bank's retail branch in Daejeon in this March 2024 photo. Korea Times file

According to the Bank of Korea (BOK), the number of branches operated by local banks stood at 5,849 at the end of the third quarter of 2024. This represents a decline of over 50 branches from a year earlier, continuing a trend of quarterly decreases since the third quarter of 2018, when the number rose briefly.

Separate data from the Financial Supervisory Service also showed that the country's four largest commercial banks — KB Kookmin, Shinhan, Hana and Woori — operated 2,824 offline branches as of September 2024, a 20 percent decrease from four years ago.

Additionally, banks are seeing a growing number of older customers amid the ongoing demographic shift.

According to the Ministry of the Interior and Safety, Korea officially became a super-aged society in December 2024, when the proportion of its population aged 65 and older exceeded 20 percent.

As the country faces a low birthrate, the proportion of older adults is projected to reach 30 percent by 2036 and exceed 40 percent by 2050.

"The banks are apparently capitalizing on the growth potential of older adults to expand sales, after regarding them as merely a digitally isolated group," said Jung Ho-chul of Citizens' Coalition for Economic Justice.

Jung noted that older customers often have to wait indefinitely for basic banking services at offline branches.

A public relations officer of a major bank said on condition of anonymity, "We've come up with more innovative measures to use offline branches to better serve seniors as valued customers in the future."

KB Kookmin Bank runs its KB Senior Lounge, a mobile van that regularly visits welfare centers in Seoul to assist older adults who are physically unable to visit nearby branches in their neighborhoods.

It also runs the KB Golden Life Center, which provides consulting services on wealth management for retirees, and KB Golden Life X, a mobile platform that offers wealth management, health care and other customized services to older customers.

Shinhan Bank operates Hakijae, a digital financial education center for older customers. The center is especially used for initiatives focused on preventing financial fraud, in collaboration with various organizations.

"We can proudly say we're taking the lead in resolving digital financial blind spots and preventing financial fraud," a PR official at a major retail bank said.

The parent company of Hana Bank, Hana Financial Group, also launched an older adult-focused brand called HANA THE NEXT in 2024.

The brand reflects its respect for the experiences of older adults and its commitment to supporting their vibrant future. It targets retirees and those nearing retirement, offering comprehensive life-care services that include retirement planning, inheritance, health management and more.

The group opened its first HANA THE NEXT lounge at Hana Bank's central Seoul branch, where its consultants offer retiree-tailored services, including financial analysis, smart asset transfer preparations and personalized health management.

Woori Bank also operates branches with ATMs that feature larger font sizes for instructions, making it easier for older customers with reduced vision. The instructions use simple, clear language instead of banking jargon, which can be difficult for many older customers to understand.

Originally targeting farmers and cattle breeders, NH NongHyup Bank pushes to "keep company" with older people in agricultural and other rural areas where populations are dwindling. Every week, counselors hired by the company visit the older customers who live alone and offer them tips on finance as well as health and everyday life.