Access to finance remains a significant form of inequality worldwide, not just in terms of account ownership but also in how individuals are treated within the financial system. The World Bank reports that 1.4 billion adults are unbanked due to various barriers. Even in advanced economies, financial literacy and engagement gaps persist, highlighting a need for a shift in financial services.
South Korea presents a unique case. While it is a digital leader with widespread account ownership, it ranks 87th in financial competitiveness due to low consumer trust and satisfaction. This gap raises questions about the effectiveness of financial inclusion efforts.
Enter Toss Bank, Korea’s 20th licensed bank and the first B Corp-certified bank in the country. It aims to transform the financial landscape by viewing banking through the consumer’s eyes, challenging the status quo of a supplier-centric approach.
Toss Bank focuses on reimagining core financial services by prioritizing convenience, accessibility, and transparency. Features like “Receive Interest Now,” real-time loan comparison tools, and renter protections are designed to meet the needs of underserved groups, treating inclusion as a strategic product rather than charity.
The impact of Toss Bank’s approach is evident. With over 12 million customers, including a high share of individuals with low-to-mid credit scores, Toss Bank has opened access to tax-exempt savings accounts for tens of thousands of elderly and disabled citizens, breaking down logistical barriers with digital services.
In an interview, Toss Bank’s Chief Technology Officer, Junha Park, highlighted the challenges in Korea’s financial system, which has historically prioritized supplier convenience over consumer needs. Customers often face unnecessary inconveniences, such as limited interest payment options and opaque loan rejection processes.
Toss Bank redefined the problem by focusing on the financial consumer’s perspective, reshaping the industry by concentrating on borrowing, saving, growing, and spending. The bank’s customer-centric approach has led to significant market changes, such as the “Receive Interest Now” feature, allowing customers to receive interest at their convenience, challenging traditional banking norms.
This consumer-focused innovation extends to products like the Jeonsse and Wolsse loan, which includes renter protection services, addressing both financial and emotional risks associated with housing. Additionally, Toss Bank’s joint loans with regional banks promote co-prosperity, offering favorable terms to a wider audience.
Toss Bank has proven that innovation doesn’t always require new products. By approaching existing systems with a fresh mindset, it has restructured intent and reframed delivery, focusing on how people experience financial services.
The changes implemented by Toss Bank have had a tangible impact, promoting financial inclusion across various social groups. Its own credit evaluation system offers low-interest loans to young entrepreneurs, early-career professionals, and others excluded from traditional banking.
By leveraging digital technology, Toss Bank has removed barriers for vulnerable groups to access financial services. Its digital tax-exempt savings account service has enabled thousands to benefit from tax exemptions without the need for in-person visits.
Toss Bank’s advanced digital capabilities, driven by a significant IT workforce, underscore its commitment to innovation. With over 55% of its employees in IT and development roles, Toss Bank continues to demonstrate the power of technology in transforming lives.
Note: This article is inspired by content from https://www.forbes.com/sites/christophermarquis/2025/05/20/from-access-to-equity-toss-banks-approach-to-financial-transformation/. It has been rephrased for originality. Images are credited to the original source.