Savings banks focus on Gen MZ-oriented marketing

The Korea Times

The Korea Times

Finance

Sun, October 1, 2023 | 21:05

Companies

Savings banks focus on Gen MZ-oriented marketing

Posted : 2022-08-05 16:32

Updated : 2022-08-07 11:08

An image of OK Savings Bank's corporate character / Captured from YouTube

Lenders no longer offer attractive deposit rates that appealed to older customers

By Yi Whan-woo

Savings banks are bolstering marketing campaigns to attract Generation MZ consumers, which is a Korean term referring to Millennials and Generation Z.

The second-tier savings banks used to offer much higher deposit rates than first-tier banks, which prompted older generations, many of them business owners, to open accounts.

But that is no longer the case.

The difference in deposit rates has been rapidly narrowing recently, as the top-tier lenders are offering higher rates as a part of efforts to share the pain with borrowers after being criticized for profiting from high interest margins.

For instance, the average deposit rate gap between savings and top-tier banks shrank to 0.69 percent in June, down from 0.76 percent in March and 1.10 percent in September 2021, according to the Bank of Korea (BOK).

A promotional video of Welcome Savings Bank / Captured from YouTube

Under the circumstances, the savings banks are capitalizing on corporate brand characters, forming partnerships with influencers and offering investment-related contents to draw the interest of Generation MZ consumers on YouTube.

OK Savings Bank, a flagship affiliate of OK Financial Group that newly joined the list of Korean conglomerates this year, features an animated character in promotional videos.

The character has become so popular that the lender has been producing short films starring the character on a separate YouTube channel.

The films are themed on recycling, cooking and other issues that are not necessarily related to the company, but rather to subjects young generations find interesting.

Accordingly, the number of subscribers to OK Savings Bank's YouTube channels have surpassed 900,000, which is the highest among all savings banks.

"It will be a matter of time for the number to reach 1 million," a market observer said, noting that a million is the combined number of subscribers of the five top-tier banks _ KB Kookmin, Shinhan, Hana, Woori and NongHyup.

Welcome Savings Bank has produced nearly 50 YouTube clips, which include corporate brand promotions in lighthearted entertainment programs and investment tips using seed money.

The company also partnered with an animation channel that has more than 221,000 subscribers.

SBI Savings Bank has made more than 310 clips in cooperation with famed YouTubers in a wide range of areas, including food and pet care.

The savings banks are also making TV commercials.

For instance, OK Savings Bank's TV ad stars Tae Jin-ah, a 70-something trot singer who is known well across all age groups.

SBI Savings Bank has come up with easy-to-sing commercial jingles starring an animated lion.

yistory@koreatimes.co.kr