Rate cut acceptance rate varies by bank… Nonghyup 96%, Shinhan 43%

Input 2021.03.15 16:41

Among the five major commercial banks, the percentage of customers that accepted interest rate cut demands differed greatly by bank. Some have accepted less than half of the demand for interest rate cuts, but others have accepted almost all of them. The right to request a rate cut is the right of a customer to ask the bank to lower the interest rate due to an increase in credit score after lending.

According to data submitted by the Financial Supervisory Service by Rep. Doo-Hyun Yoon on the 15th, from January to October of last year, they applied for the right to request an interest rate cut to five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and Nonghyup Banks, and received the benefit of the rate cut The number of customers was 29118. The amount of interest they saved through the interest rate cut request rights totaled 25.6 billion won.

Nonghyup Bank (9334) was the largest number of customers receiving interest rate cuts. ▲ Shinhan Bank (7063) ▲ Kookmin Bank (5912) ▲ Woori Bank (4877) ▲ Hana Bank (1932) followed.

Nonghyup Bank’s acceptance rate, which is the percentage of those who applied for the interest rate cut request, was the highest at 96.4%. Woori Bank (72.7%) and Hana Bank (53.2%) followed, and the acceptance rates of Kookmin Bank (46.7%) and Shinhan Bank (43.2%) were less than half.

The reason for the large difference in acceptance rate was that each bank had different operating standards and statistical calculation methods. The Nonghyup, which has the highest acceptance rate, calculated the number of applications after excluding those who applied for the right to request interest rate reduction. Woori Bank also considered the number of applications after subtracting those who were not subject to application and those who withdrew or canceled after application, and Hana Bank considered the number of applications to be the number of applications who completed the application for the interest rate reduction request.

On the other hand, Kookmin Bank and Shinhan Bank calculated it for all those who applied for the right to request a rate cut. As the denominator (the number of applications) increased compared to other banks, the acceptance rate decreased. An official from the Financial Supervisory Service explained, “Until June 2019, the interest rate cut request rights were operated autonomously by the bank, and a clear statistics aggregation standard was not established.” did.

There were also differences between banks in terms of the method of guiding the right to claim rate cuts. Major commercial banks are only at the level of explaining the interest rate cut demand system through the household loan product description when a customer makes a loan agreement, extension or condition change. In the case of Woori Bank, in the case of long-term loans exceeding one year, the request right is informed by text message once a year, and the Nonghyup Bank sends a text message every five months to customers who own the product subject to the request.

On the other hand, Kakao Bank, an internet bank, is aggressive by sending a notice to apply for a rate cut request to customers whose credit ratings have changed every quarter through a mobile app (application) push notification. There is also a service that allows you to check in real time whether a credit score increase and a loan interest rate can be cut through the app.

Kakao Bank’s aggressive method of guiding the right to demand rate cuts was also proved by numbers. Last year, Kakao Bank applied for an interest rate cut request and received an interest rate reduction of 90,000, three times that of the five major commercial banks combined. The total amount of interest they saved was 3 billion won.

Recently, the financial authorities have stepped up to improve the operating standards of banks’ interest rate cut demands. The financial authorities set up a task force (TF) with 18 banks, including the Banking Federation, last month. The TF is discussing ways to establish a unified standard for interest rate cut demand rights, and how banks regularly guide interest rate cut demand rights throughout the entire loan period or notify customers with increased credit scores of interest rate cut demand rights.