Commercial banks see long-distance lending steadily increasing

A sign in a Seoul bank announcing low interest rates for households and individuals. (Yonhap)

SEOUL, Sep 23 (Korea Bizwire)The use of remote banking loans that can be requested in a few clicks online is constantly increasing.

Outstanding distance loans at the country’s 18 commercial banks at the end of June 2021 stood at 111.8 trillion won ($ 94.4 billion), almost three times more than 39.4 trillion won. in late 2017, according to data released by Representative Min Hyung-bae of the ruling Democratic Party compiled by the Financial Supervisory Service.

Outstanding distance loans trended upward, from 49.3 trillion won at the end of 2018 to 67.1 trillion won at the end of 2019 and 99.4 trillion won at the end of 2020.

During the same period, the number of such loans increased by around 220%, from around 1.8 million cases to around 5.8 million cases.

Among the country’s 18 commercial banks, Internet-only Kakao Bank ranked number one in remote loan balances with 23.1 trillion won.

The biggest weapon of remote loans is simplicity. Customers can borrow money online without having to go to a bank branch.

Amid the COVID-19 pandemic, customers are increasingly showing a preference for remote transactions. In addition, the interest rates on remote loans are lower than those on face-to-face loans due to competition among banks.

JS Shin ([email protected])


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