The internet-operated K bank is enjoying the enhancement in the number of young customers. All thanks to the partnership with the local cryptocurrency exchange, Upbit.
During the first two months of this year, the number of new customers who were opening new accounts with K bank is standing near 920000. It is exceeding the track record of internet-only rival Kakao Bank, which is seeing 380000 new customers.
K bank is saying that the number of people using its mobile banking service has increased up to 3.11 million by the end of February. However, it managed to surge by 42%, which is compared to just two months ago when the number of users was standing at 2.19 million.
What is much notable here is that about 70% of K bank users during the first two months of this year were in their 20s-30s. Young Koreans are flocking to this mobile-based bank to invest in crypto coins such as bitcoin and Ethereum at Upbit. It requires the users to have an account with K bank to either deposit or withdraw their money for the trading of coins.
With the increase in the number of millennial customers, the monthly active users of K bank quadrupled in February from June 2020.
The partnership of K bank with Dunamu started in June of last year, and the deal was much beneficial for both sides. Upbit can attract more users whose identities are potential to get verified while meeting the requirement of the Korean government for local coin exchanges. This bank is also earning a new growth gain in the burgeoning market of digital currency.
K bank had been lagging behind its rival Kakao bank for the past few years, as it was facing difficulties in attracting capital. Because of this, K bank was forced to stop offering loan products for more than one year.
As K bank got stuck in the doldrums, Kakao Bank managed to dominate the market. It was attracting at least 13.6 million users. However, K bank is probably going to boost the share of internet banking in the market, which is based on the strengthening of digital asset partnerships during the surge of cryptocurrency.