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CCommercial Banks, Biting the Bullet, ‘Free Foreign Currency Exchange Fees’… “Back to the Interest Business”

NSP NEWS AGENCY, By Soon-ki Lee and Soo-in Kang, 2024-01-30 14:37 ENX7
#Toss #FreeExchangeFee

(Seoul=NSP NEWS AGENCY) = Toss Bank, an internet-only bank, introduced a foreign exchange service that offers free currency exchange for life. Accordingly, free exchange fees are becoming a culture among commercial banks. In response to this, commercial bank executives expressed concern that “if we reduce non-interest income, we will eventually have to increase interest income.”

On the 18th, Toss Bank announced the launch of a foreign exchange service with free exchange fees for life. ‘Toss Bank Foreign Currency Account’ is a service that allows you to exchange 17 currencies around the world in real time, 24 hours a day. In particular, this service provides free exchange fees for life and also provides free payment fees as a card promotion.

Afterwards, on the 26th, Shinhan Bank also announced that it plans to introduce the ‘SOL Travel Check Card’ in February, which exempts overseas payment and withdrawal fees. This includes 100% preferential exchange rates for 30 currencies around the world(currency exchange), exemption from overseas payment and ATM withdrawal fees(card use), and special interest rates on account balances after currency exchange (holding and re-currency exchange).


In relation to this, a fintech official said, “Toss’s suddenly collapse of fees will establish this culture in the financial sector,” and added, “Small fintechs that have been providing currency exchange services with various benefits are all in trouble.”

“Korea is currently in the process of eliminating fees,"said an official from a commercial bank,” and if this happens, interest income could soar to 99% from the current 90% of the total."

Ultimately, the banking sector has no choice but to shift to increasing interest profits. An official from a commercial bank sighed, saying, “In the end, we have no choice but to raise interest profits, so we will be criticized for ‘interest business’ again.

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