Toss Bank charts first overseas expansion

Toss Bank, South Korea’s leading internet-only lender, is plotting its first overseas expansion, with both developing and developed markets under review.

CEO Rhee Eun-mi unveiled the plan Wednesday at a press briefing, marking a key strategic pivot for the digital bank. While Korean lenders typically target emerging economies in their initial overseas forays, Toss Bank aims to break that pattern.

“We believe Toss Bank can achieve its next steep growth in the global market,” Rhee said. “This isn’t just about scaling services — we’re looking for where we can redefine customer experience.”

Despite mature financial systems in advanced economies, Rhee sees room for improvement. “While developed markets have established infrastructures, customer-facing services often fall short,” she said.

Her view is informed by global banking experience, including a chief financial operator role at Deutsche Bank Korea and, most recently, as regional CFO for commercial banking in the Asia-Pacific at HSBC. Rhee added that several well-capitalized overseas institutions have already approached Toss Bank to explore digital banking partnerships.

Toss Bank currently operates domestically through Toss, the multipurpose finance app run by fintech giant Viva Republica. But the lender doesn’t plan to rely solely on that platform abroad.

“Banking is far more regulated than fintech, and while Toss and Toss Bank stay closely aligned, our global strategy remains independent,” Rhee said, adding the company isn’t tied to the single-app model for international ventures.

The move comes as Toss Bank looks to diversify revenue streams in its fourth year of operations. Since launching in October 2021 as Korea’s third internet-only bank, it has grown rapidly by tapping into Toss’ 12 million users. The lender reported 8.8 million monthly active users in 2024, becoming Korea’s third-most-used banking service.

It also turned its first profit last year, posting 45.7 billion won ($32 million) in net income.

Rhee on Wednesday outlined a three- to five-year roadmap that also includes deepening engagement with Korea’s aging population.

“Nearly half of our users are in their 40s or older,” she said. “We are considering establishing a dedicated unit to better serve this segment.”

Also in the coming years, Toss Bank aims to move beyond its retail focus with a full-service corporate banking offering. It will also bolster its foreign exchange service — which gained attention last year with Korea’s first fee-free currency exchange — by adding outbound remittances soon.

The CEO also revealed Toss Bank plans a separate listing from its parent company, which is currently amid preparations for market debut. “We’re reviewing it as a mid- to long-term strategy, but there’s no set timeline or concrete plan at this stage,” Rhee said.