**Enhancing Financial Accessibility through Delegated Banking Services**
*[By Lee Soo-bin, Edaily News]* Recently, as bank branches continue to close, new measures will allow banking services like deposits, savings, and loans to be conducted at locations such as post offices. On the 27th, the Financial Services Commission revealed plans to boost financial accessibility with the introduction of delegated banking services. This includes measures such as the introduction of bank agency services, shared ATMs, and enhanced convenience store cash withdrawal and deposit services.
**Improving Consumer Access through Bank Agencies**
With the fast-paced digital transformation of the financial sector, the number of physical bank branches is on a steady decline—from 7,623 in 2011 to 5,794 in 2023. This decline raises concerns about limited financial transaction access for digital illiterates, especially the elderly.
To address this, financial authorities plan to implement a “bank agency system” where third parties can handle core banking tasks like deposits, savings, and transfers on behalf of banks. This would allow customers to conduct face-to-face banking transactions at locations other than traditional bank branches.
Under this system, bank agents are responsible for customer-facing tasks such as consultations, transaction applications, and contract execution. Meanwhile, critical decision-making processes like loan assessments and approvals will remain under direct bank control.
The authorities aim to ensure that only suitable entities can enter the bank agency business by managing it through an approval system. Entry will primarily be permitted for entities where banks or a consortium of banks hold the largest share. Entities like regional post offices, mutual finance institutions, and savings banks with local networks will also be allowed entry.
Bank agents can represent multiple banks, but they must facilitate transactions face-to-face to improve consumer access. The third-party representation of internet-only banks, which lack face-to-face business capabilities, will be prohibited.
The bank agency model is expected to enhance face-to-face transaction accessibility. Additionally, bank agents might serve as “offline comparison platforms,” allowing consumers to compare and transact savings and loan products.
To implement the bank agency system, the government plans to amend the “Banking Act” within the year. Recognizing the lengthy legislative process, they will initially pilot the scheme as an innovation financial service under the “Financial Innovation Support Special Act.”
**Promotion of Shared ATMs and Convenience Store Services**
Financial authorities are also pursuing the expansion of shared ATMs among banks. Currently, due to a lack of incentives, only the four major banks (Shinhan, KB Kookmin, Hana, Woori) offer such services, resulting in insufficient shared ATM infrastructure. Given the ongoing demand for cash transactions, authorities plan to encourage the installation of shared ATMs, offering incentives such as recognizing operational costs as part of social contribution activities.
Presently limited to traditional markets, shared ATM installations will be extended to local government offices, community and elderly welfare centers, cultural centers, large regional marts, and additional locations. Beyond shared ATMs, authorities are also working to expand business collaborations allowing bank customers to conduct transactions through ATMs of local financial institutions.
Furthermore, convenience store cash withdrawal and deposit services will be improved. Currently, such services require physical cards or cash for small cash withdrawals or depositing change, and purchases are necessary for cash withdrawals, posing user challenges.
Authorities plan to lift purchase requirements for small cash withdrawals, raise withdrawal and deposit limits, and integrate mobile cash cards for easier cash transactions.