Online Youth Counseling at Rapidfund Surges to Daily Average of 986 Cases

The number of young people seeking financial counseling to maximize their interest rates for the newly launched 'Youth Future Savings' account has surged dramatically, nearing an average of 1,000 people per day last week. According to the Rapidfund (the Korea Financial Consumer Protection Foundation for Low-Income People) on the 20th, daily applications for the 'Online Financial Counseling for All Youth' program averaged 986 cases as of the 16th, marking an increase of over 17-fold compared to the period before the Youth Future Savings launch (57 cases).

Applications were concentrated during the product sales period. About 76.1% of all financial counseling applications were filed during the approximately two-week account opening period from the 27th of last month to the 7th of this month. As applications flooded in over a short period, the time required to complete counseling extended from the usual two weeks to four to five weeks or more. To reduce counseling delays, the Rapidfund has deployed additional online counseling staff and is processing applications sequentially. Currently, 119 'Visiting Financial Coaches' are active nationwide.

Online financial counseling involves financial coaches providing online responses based on the financial diagnosis results and concerns submitted by the youth. Unlike face-to-face counseling, it offers high convenience as there are fewer constraints on time and location. Reviews posted on blogs and social networking services (SNS) indicate that the counseling has helped users reflect on their spending habits and clarify vague goals for asset accumulation.

Professor Seo Ji-yong of the Department of Business Administration at Sangmyung University stated, "This surge can be interpreted as immediate incentives, such as preferential interest rates, converting the latent demand for financial management among the youth demographic into action."