Mortgage loans can be applied using your mobile in near future, which will change the paradigm of mobile banking.(Image:Kobiz Media/Kobizwire)
SEOUL, Nov.13 (Korea Bizwire) – From now on, banking services will become more mobile. Previously, only a small amount of money, typically less than 100,000 won at a time, can be transferred, but the more and more banks are expanding their mobile services in various ways even from deposits to loans. Mortgage loans can be applied using your mobile in near future, which will change the paradigm of mobile banking.
On November 12, Woori Bank announced it would begin to provide mobile mortgage loan services called “Smart Apartment Loan” from early next year. What the applicant has to do is simply register their information about income, working status, name of the house she wants to buy on her mobile. The screening system will inform the applicant of eligibility for loan.
Once the applicant accepts the terms and conditions and the amount of the loans, she will sign for collateral security on her mobile with a few touches.
This service, however, is limited to applicants who already have borrowed money with the bank before. If the applicant purchases a new house, she still needs to visit the office and pledge the collateral mortgage for the loans.
Hana Bank previously provides similar service called “One-click Mortgage Loan” where people make a phone call for the loan and sent all necessary documents via fax after consulting.
Gook-min Bank, Shinhan Bank, and other banks are planning to launch similar mobile loan packages such as mobile credit loans, and Joense housing loans. The reason to pouring various mobile loan packages is to take advantages in mobile-internet banking sector.
From 11 November, Kakao began “Bank-wallet-Kakao” service, which spurs banks to launch various mobile loan packages. The bank officials predict that if mobile loans are only few clicks away, people will no longer visit branches for loans and turn their attention to mobile loan services.
In addition, the age group between the 40s-50s is the main customers for mortgage loans, who feel uncomfortable with mobile banking but younger generations are different, and they cannot live without mobile. This trend tells that mobile banking will become much more popular.
Also the lending rate stays around 3 percent per year at the moment. But the mobile loans will provide customers with a cheaper rate at around 2 percent, which makes the mobile loan package more appealing and competitive in the market.
By Caroline Seo (firstname.lastname@example.org)