K Bank, a South Korean online-only bank, has begun distributing insurance products from several life and general insurers.
The bank recently released 20 savings and protection insurance policies, which it calls “mobilessurance”, all available through a single mobile app, reported the Korea Times.
Four general insurers – Hanwha General, Hyundai Marine, MG Non-life, and KB Insurance – are distributing their products through K Bank, as well as four life insurers – Hanwha Life, IBK Insurance, BNP Paribas Cardif Life, and Kyobo Lifeplanet Life. Lotte Insurance is also planning to release its products through K Bank soon.
According to K Bank, it offers 24/7 services though phone, mobile messaging, and e-mail. Consultation and subscriptions are offered any time of the day, all-week long.
There are currently two online-only banks in South Korea, the other one being Kakao Bank. These two banks have kickstarted a chain reaction in the country’s stagnating banking industry, proving the disruptive effect of financial technology (fintech).
Due to their accessibility and unique products, the two online-only banks now have a combined 4.5 million accounts. Their popularity has also led conventional banks to increase their deposit interest rates from between 1% and 2% to between 2% and 3%. They also lowered their loan rates by 0.05% on average.
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