South Korea’s internet-only lender Kakao Bank is stepping up its push into artificial intelligence, aiming to evolve into a personalized financial assistant while accelerating its overseas expansion, including entry into Mongolia.

Speaking at a press conference in Yeouido, Seoul, on Wednesday, CEO Yun Ho-young said the bank will leverage AI to deliver highly customized financial services and drive innovation beyond the domestic market.

Mongolia next in global push

Kakao Bank has officially named Mongolia as its next expansion target, following earlier moves into Indonesia and Thailand. The bank plans to export its proprietary credit evaluation model, Kakao Bank Score — which incorporates nonfinancial data — to local financial institutions.

Yun described the strategy as an extension of Kakao Bank’s “inclusive finance” model, adding that its footprint in Southeast Asia and Mongolia will serve as a springboard for broader global growth.

Executives from key partners, including Indonesia’s Superbank and Thailand-based Bank X, attended the event.

Superbank, Kakao Bank’s first overseas investment, has emerged as Indonesia’s largest digital bank by market capitalization. CEO Tigor M. Siahaan said the lender reached break-even in March 2025 and has since expanded to 6.4 million users.

He credited Kakao Bank’s model — including gamified features such as “Challenge” and “Lucky Pocket” — with boosting engagement in underserved segments, reaching around 1.2 million daily transactions.

In Thailand, Bank X is preparing to launch virtual banking services in early 2027. CEO Punnamas Vichitkulwongsa said the initiative targets structural gaps in the financial system, noting that a significant share of savings remains cash-based.

Bank X plans to adopt an AI-driven model to reduce costs and improve accessibility, while incorporating Kakao Bank’s user-friendly features to expand formal lending to freelancers and small business owners.

Kakao Bank is also expanding services for foreign users, targeting roughly 20 million potential customers — including foreign residents, short-term visitors and overseas Koreans — with AI-powered translation capabilities.

AI-native bank

Kakao Bank also outlined a broader transition toward becoming an “AI Native Bank,” leveraging its base of roughly 27 million users and 70 trillion won ($52 billion) in deposits.

The bank is expanding beyond core services such as transfers and deposits into payments and investment offerings, aiming to shift customer value from “sending and storing money” to “spending and growing wealth.”

New initiatives include customized debit cards, a second private-label credit card, a payment hub that integrates transaction data, and an investment tab for product comparison and portfolio management. The bank also plans to enter the retirement pension market.

Yun highlighted what he described as the “paradox of expansion,” where adding more features can reduce usability, stressing that AI will play a central role in proactively identifying and addressing user needs.

Kakao Bank is embedding AI across its platform and plans to introduce a dedicated AI tab. By combining user data with a finance-specific large language model, the bank aims to deliver hyper-personalized services.

Looking further ahead, Kakao Bank said it aims to lead the development of a won-based stablecoin and position itself as a global financial platform.

The bank targets 100 trillion won in assets and a return on equity of 15 percent by 2027, driven by balanced growth across its lending, platform and asset management businesses.

ch0221@heraldcorp.com

Published Date:2026-04-08