Banking on Efficiency: Internet Banks Leave Big 5 in the Dust with 2.4 Times Higher Productivity Per Employee
- According to recent data, the average profit per employee of internet-only banks in the first half of this year (January to June) reached an impressive 400 million won.
- The data, which was disclosed on the 3rd, revealed that the average profit per employee (based on operating profit before reserves) of the three internet banks, Kakao, K,...
- In contrast, the average profit per employee of the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, decreased by 13.6% from a year...
Internet-Only Banks’ Productivity Soars: A 38% Increase in Average Profit Per Employee
Internet-Only Banks Outshine Traditional Banks in Productivity
According to recent data, the average profit per employee of internet-only banks in the first half of this year (January to June) reached an impressive 400 million won. This figure is more than twice as high as the productivity of major commercial banks.
The data, which was disclosed on the 3rd, revealed that the average profit per employee (based on operating profit before reserves) of the three internet banks, Kakao, K, and Toss Bank, as of the end of June was 381 million won. This represents a significant 38.5% year-on-year increase. Toss Bank’s profit per employee was the highest among internet banks, at 525 million won.
In contrast, the average profit per employee of the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, decreased by 13.6% from a year ago to 159 million won. This highlights a significant difference of 221.01 million won between internet banks and traditional banks, with internet banks boasting a whopping 2.4 times higher productivity.
The high productivity of internet banks can be attributed to their characteristic of not having face-to-face sales staff. As of the end of June, the total number of domestic employees of Kakao, K, and Toss Bank was 2,669. This is only 16.4% of the number of domestic employees of KB Kookmin Bank, the number one commercial bank (16,255).
A banking industry official explained, ”Internet banks were launched on the premise of non-face-to-face, so they are relatively free from costs such as personnel and branches, unlike commercial banks.”
Key Statistics:
- Average profit per employee of internet-only banks: 381 million won
- Average profit per employee of traditional banks: 159 million won
- Year-on-year increase in average profit per employee of internet-only banks: 38.5%
- Year-on-year decrease in average profit per employee of traditional banks: 13.6%
Related Topics:
- Internet-only banks
- Traditional banks
- Productivity
- Banking industry