K bank turns to physical touchpoints to meet cash demand

A woman uses a K bank automated teller machine in Seoul. The screen displays the phrase “a pleasant financial life.” (K bank)
A woman uses a K bank automated teller machine in Seoul. The screen displays the phrase “a pleasant financial life.” (K bank)

K bank’s ATM usage has surged sixfold over the past year, highlighting a shift in Korea’s fast-evolving financial landscape: even as digital banking expands, demand for physical cash access is rising.

The internet-only lender said Tuesday that monthly transactions at its automated teller machines climbed to around 300 in 2025, up from about 50 a year earlier. The jump follows an aggressive expansion of K bank’s offline footprint, signaling that digital convenience alone is not enough to meet customer needs.

K bank is the only internet-only bank in Korea that operates its own ATM network in Seoul. Since November 2024, it has expanded the network from five to 45 subway stations, converting 40 shared machines into K bank-exclusive ATMs located in high-traffic areas.

The impact was immediate.

Transactions at the newly converted ATMs surged 26-fold, while usage at the original five stations rose 60 percent. Sillim Station on Subway Line No. 2 recorded the highest activity, followed by Seonleung and Seoul National University stations — all hubs with heavy commuter and student traffic.

The surge reflects a shift in customer behavior. While most transactions remain mobile-first, users increasingly want seamless access to cash for daily expenses, transfers and emergencies — without fees or friction.

K bank has leaned into that demand by eliminating fees at its own ATMs and waiving charges for up to 30 monthly transactions at machines operated by other banks. It has also redesigned ATM interfaces to better appeal to younger users, blending digital-native design with physical access.

“The results show that expanding offline touchpoints remains essential, even for digital-first banks,” a K bank official said, adding that the lender plans to further refine ATM placement and services based on usage patterns.

As Korea’s banking sector pushes deeper into app-based finance, K bank’s experience suggests that the future of digital banking may be hybrid — where online efficiency and offline accessibility coexist, rather than compete.


andreahaneu@heraldcorp.com