In depth: Korea′s changing banking landscape PART 2

Min-ji, in this day and age, instead
of actually making a trip down to the bank every time we need to make a transaction…
we just simply take out our smartphones and use mobile banking or just turn our computers
on. So, it makes sense that a growing number of brick-and-mortar banks are closing
down. This online-only banking system must be
terrible news for traditional banks? There are over 7-thousand bank offices in
the nation,… and almost 400 closed last year.
And there′s speculation that their profits could decline further but experts say they
aren′t going to sit there and watch. They too will come up with diversified products
and promote online services. So while the landscape will change,… experts
say it will spur healthy competition and will likely enhance Korea′s financial soundness.
We′ve seen online-only banks up and running in the U.S. and other parts of the world…
is Korea a late-comer? The U.S. and Europe started back in the 1990s…
and Japan followed in the 2000s. Despite Korea being one of the most wired
countries,… we′re twenty years behind the U.S.
Experts say it′s going to be hard coming for Korea at first as customers will be reluctant
to change banks just because of slightly better rates and advise that Korea′s financial
authorities to benchmark success cases overseas.

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