Three Internet Banks Compete with Tailored Strategies to Boost Profits

South Korea's three internet-only banks have moved past the initial phase of customer acquisition and are now competing with their own unique methods to increase profits. Each bank is seeking new breakthroughs through differentiated strategies, highlighting deposit products, AI-powered asset management services, and corporate loans. Toss Bank has raised interest rates on its deposit products, which offer upfront interest payments, by 0.2-0.3 percentage points per tier, providing up to an annual 3.0% for a 12-month term.

Kakao Bank is evolving into a 'comprehensive asset management platform' that integrates scattered investment assets and offers personalized curation using AI, prominently featuring an 'Investment Tab' on the front of its app. K-Bank has more than doubled its outstanding corporate loans, particularly for sole proprietors, in one year (to 2.75 trillion won). Its net profit for the first quarter surged 106.8% year-on-year to 33.2 billion won.