How BTS and other K-pop idols are adding zest to banks’ branding
South Korean banks are increasingly turning to K-pop idol groups to help raise their profiles among a younger demographic.
They are hiring members of the boy bands and girl groups as company spokespeople as they try to maximise their appeal among a broad range of potential new customers – particularly “young and hip” K-pop fans.
KB Kookmin Bank, one of the country’s leading banks, started the trend – now an industry norm – by hiring the seven members of the boy band BTS as its spokesmen in January 2018 – just as the group was about to enjoy meteoric international success.
BTS twice topped the US Billboard album chart twice last year, and also enjoyed sold-out concerts in North America as part of its world tour.
“There was initially a strong backlash when a group of bank officials suggested hiring a young pop band to represent the bank,” a KB official said.
“It was understandable given that a financial services firm needs to develop a brand image associated with trustworthiness and credibility – qualities that are less associated with young entertainment figures.”
In hindsight, hiring BTS was a “spot-on” business move that helped to increase the bank’s profile with international audiences – in line with digitisation and globalisation, which were its two initiatives.
“We think BTS is the perfect model that symbolises both,” the KB official said.
“We are glad that the bank is associated with a positive image along with the band’s success with a broad global fan base.”
The “BTS effect” has also led to an increase in the number of people seeking to use the bank’s financial services.
The number of holders, for example, of KB’s instalment savings account, called KB X BTS – jumped to more than 180,000 last year – a near-six-fold increase compared with other regular savings accounts from a year earlier.
The bank considers the number is “remarkable”, given that it opens only about 30,000 accounts a year.
The target-specific marketing strategy also boosted sales, the KB official said.
The bank offered an interest rate that is 0.1 percentage point higher than the usual 1.7 per cent fixed rate on eight days – the band members’ birthdays and the day the group was established.
On the eight days when such “bonuses” were given, the amount deposited with the bank increased by more five times, compared with the usual amount.
“We extended our contract with BTS for one more year during 2019,” the official said.
“We hope the decision will help us to achieve the desired effect with global customers.”
KB’s success has seen other South Korean banks hiring popular idol groups to represent them in the hope of achieving a similar outcome in both the domestic and international market.
Woori Bank is in final talks to hire girl group BLACKPINK as company models in 2019.
Shinhan Bank, whose contract with boy band Wanna One expired in 2018, is reviewing possible K-pop candidates that will continue with the excellent job performed by the now-disbanded 11-member group.
In March 2018, the bank received 5,500 requests –― the daily maximum – for SOL Deep Dream Cheque Cards featuring 12 different versions carrying the images of Wanna One’s 11 members.
“We definitely see changes in values represented by the bank’s models,” a Shinhan official said.
“A traditional, safe way was to go for a man with a classic suit with a rather stern look on his face and a vibe full of seriousness, but qualities such as innovation, vitality, challenge and adventure – best represented by some of the idol groups – are becoming increasingly valued.”
KEB Hana Bank has hired Kim Haon, winner of the reality television hip hop show High School Rapper 2, while the agricultural bank, NongHyup has hired the girl group Gong Won So Nyeo, better known as GWSN.
NongHyup said GWSN will help fans aged in their 20s, 30s or even younger to take a greater interest in agriculture and rural affairs.
It said it was a long-neglected industry, characterised by images of old people toiling in labour-intensive and gruelling activities, [which are] far from fun.
A public relations professor at a Seoul university said: “The primary goal for any company when hiring well-known public figures is to maintain and improve a positive brand image and recognition.
“Hiring young idol groups such as BTS can prove to be a resounding success.”
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KB Kookmin Bank started the trend – and saw a big increase in the demand for its financial services after BTS’ members became its spokesmen