From Access To Equity: Toss Bank's Approach To Financial Transformation

Forbes

20-05-2025

Around the world, access to finance remains a persistent form of inequality—defined not only by whether people can open bank accounts, but by whether they are treated fairly within the system.
According to the World Bank, 1.4 billion adults remain unbanked, often due to lack of money, proximity, or documentation. Yet even among account holders in advanced economies, gaps persist: fewer than 34% meet basic financial literacy benchmarks, only 26% compare financial products, and just 24% seek independent advice.
South Korea, despite its position as a digital frontrunner with near-universal account ownership, is a paradox. While the country ranks 6th in financial development, it is just 87th in financial competitiveness, based on consumer trust and satisfaction. Despite near-universal account access, average willingness to engage with financial institutions scores only 2.8 out of 5. These figures point to a gap in whether steps taken to address financial inclusion actually are delivering benefits to the individuals who need banking services the most.
Toss Bank was founded to upend this status quo. As Korea's 20th licensed bank and its first B Corp-certified bank, Toss Bank has built its identity not on disruptive technologies alone, but on a fundamental shift in perspective: seeing banking through the eyes of the consumer. Why, its founders asked, should the finance industry remain rigid and opaque while every other consumer-facing industry adapts to its users?
In response, Toss Bank reimagined core financial services—borrowing, saving, spending, and investing—by rooting them in convenience, accessibility and transparency.
In the interview below with Junha Park, Toss Bank's Chief Technology Officer we discussed how features like 'Receive Interest Now'', real-time loan comparison tools, and renter protections were designed in direct response to the needs of underserved groups—treating inclusion not as charity, but as product strategy.
The impact has been significant. Toss Bank serves over 12 million of customers, with monthly active users reaching 8.8 million, including a disproportionately high share of individuals with low-to-mid credit scores—groups historically neglected by mainstream banks. It has also opened access to tax-exempt savings accounts for tens of thousands of elderly and disabled citizens, removing long-standing logistical barriers through fully digital services.
Toss Bank proves that financial inclusion doesn't have to be a side initiative—it can be the engine of growth. It stands as a model for what a responsive, ethical, and innovative banking future could look like.
Christopher Marquis: What do you see as the key problems in Korea's financial system and how do these create barriers for customer?
Junha Park, Toss Bank's Chief Technology Officer
Toss Bank
Junha Park: Over the past 20 years, Korea has undergone significant changes in its financial landscape. The major financial groups have grown larger, consolidating their power. However, since 2017, internet banks have emerged, rapidly transitioning the industry from analog to digital. It is true that customer convenience and accessibility to banking have greatly improved.
Nevertheless, what has not changed is the 'supplier-centric perspective.' Banks continued to supply financial services from the viewpoint of the supplier, offering products that were more convenient for them to sell and manage, rather than catering to the needs and interests of consumers.
For example, customers are still required to receive interest only on certain days that the bank has set, and when a loan is rejected, customers are rarely given a clear explanation of why.
For self-employed individuals, simply applying for a loan often requires taking time off work to wait for hours at the bank. Many customers are also unsure about what documents are needed, leading to loan rejections or the need to resubmit documents and wait again.
In this environment, customers often don't receive the treatment they deserve as consumers, and this seemed to be the prevailing culture in finance.
Marquis: So how did Toss Bank believe it should solve this problem?
Park: Toss Bank raised a question about this perspective. In most service and manufacturing industries, the consumer is at the center, so why is it that finance, of all sectors, still remains so rigid? Banks continued to provide financial services from the supplier's viewpoint, offering products that were easier and safer for them to sell and manage, rather than focusing on the needs and interests of consumers. Moreover, in the interest of convenience for management and operations, banks imposed unnecessary inconveniences on customers or, worse, allowed these inconveniences to persist knowingly.
From the moment it was established, Toss Bank redefined the problem from a "financial consumer's perspective" and began to view the existing financial system in a completely different way. Its goal was to focus on providing the financial services most needed by customers. Toss Bank has been reshaping the financial industry by concentrating on the four fundamental and essential consumer behaviors of finance: borrowing, saving, growing, and spending. The financial sector in South Korea has been undergoing significant transformations since the emergence of Toss Bank in 2021.
Marquis: Are there any specific examples of this work? How has it led to market changes?
Park: Launched in October 2021, Toss Bank is creating a new model for banking with a focus on simplicity and a customer-centric approach. In addition to offering a checking account that allows customers to earn interest daily and a term deposit that pays interest before the maturity date, the bank has introduced a service that enables customers to easily check their loan limits and interest rates and apply for loans whenever they wish. Moreover, Toss Bank has introduced differentiated, customer-focused services in all areas of banking, including checking cards, foreign exchange, and asset management.
One of the most revolutionary services introduced by Toss Bank was the "Receive Interest Now" feature. Traditionally, banks would pay interest once a month on a set date, but Toss Bank challenged this by offering customers the ability to receive interest whenever they wanted. This service shifted the balance of power, giving control of financial transactions back to the consumer. It allowed the user to decide when they wanted to receive their interest, moving away from the traditional, supplier-centric approach.
Currently, 7,000,000 customers are using the "Receive Interest Now" feature. After Toss Bank introduced this service, 10 other financial institutions followed suit and launched similar offerings, marking a significant change in the domestic financial ecosystem. Toss Bank's approach focused on defining and solving problems from the user's perspective, rather than maintaining the old supplier-driven model.
Marquis: Toss Bank seems to focus more on solving financial problems than just creating products and services. Can you say more about how Toss Bank focused on addressing these issues?
Park: Toss Bank has long believed that the way something is done—the how—is as important as what is being offered. Rather than focusing solely on creating new financial products, the bank emphasized approaching existing ones differently, with the belief that genuine innovation would naturally lead to solving customer problems. This innovation didn't require drastic changes in the market, but it did demand a departure from conventional thinking and a willingness to reframe the familiar.
In a financial landscape where many products have become standardized and commoditized, Toss Bank approached product design from a different angle. By focusing on user intent and experience, they were able to produce outcomes that stood apart from the norm.
One example of this approach is the Jeonsse and Wolsse loan. While many banks offer similar lease loans, Toss Bank integrated services that directly address challenges faced by renters. These included a registration change alert system, which notifies customers of changes in property ownership or legal status—such as the property being put up for auction—and a guarantee insurance service that ensures tenants' deposits will be returned, a process typically handled separately. By combining these services into the loan offering, Toss Bank addressed not only the financial aspect of renting but also the practical and emotional risks associated with housing. This approach gained recognition, particularly given the rising concern over housing fraud in South Korea.
Another example is Toss Bank's joint loan initiative with a regional bank. Instead of launching a conventional credit loan product, they partnered with local financial institutions to co-develop and distribute loans. These regional banks brought strong credit evaluation capabilities and local knowledge, while Toss Bank contributed digital infrastructure and broader market reach. By jointly setting loan terms such as limits and interest rates, the collaboration allowed both parties to offer more favorable terms to customers and extend services to a wider audience. This was seen as a meaningful effort to promote co-prosperity within the financial sector.
In both cases, Toss Bank demonstrated that innovation doesn't always mean creating something entirely new. Sometimes, it's about approaching existing systems with a different mindset—restructuring intent, reframing delivery, and staying focused on how people actually experience financial services.
Marquis: What is your assessment on if the changes Toss Bank has made have had a tangible impact on customers?
Park: Indeed, the changes created a socially expansive context for finance, erasing the boundaries of inclusion. Toss Bank's innovative services, which now number over 40 distinct initiatives, have reached everyone—regardless of disability, age, nationality, asset size, or any other characteristic. The bank's approach has been about creating inclusive finance that touches every segment of society equally.
Toss Bank has achieved borderless inclusion, benefiting both customers and a variety of stakeholders. Whether it's young people, seniors, multi-child households, small business owners, or individuals with different asset sizes, gender, profession, skin color, or disability status—Toss Bank has been committed to developing and offering products and services that cater to everyone.
Toss Bank has developed its own credit evaluation system and is continuously enhancing it to provide relatively low-interest loans to various social groups who have been excluded from traditional banking services. This includes young entrepreneurs, early-career professionals, small business owners, and credit newcomers with limited credit histories. Despite having real income and repayment capacity, these individuals have been excluded from the traditional credit evaluation system, which is based on financial data. Through its own credit evaluation system, powered by cutting-edge technologies such as deep learning and machine learning, Toss Bank is promoting financial inclusion for these individuals.
From vulnerable groups to foreigners have been able to access easy and convenient financial services with Toss Bank. One of their notable initiatives, the completely digital, non-face-to-face tax-exempt savings account service, is the first of its kind in the financial industry. After its launch, about 47,000 customers from vulnerable groups, including people with disabilities, the elderly, and those on basic living support, were able to receive tax-exempt benefits on 600 billion KRW in deposits.
This government system allows individuals with disabilities, the elderly, and those receiving basic living support to benefit from tax exemptions on savings products. However, these groups have historically faced significant barriers, such as the need to visit bank branches or obtain documents in person to access such services. Toss Bank removed these barriers by allowing users to check their eligibility and access the relevant services directly through the Toss Bank app, significantly improving accessibility.
All of this was made possible because of Toss Bank's digital technology capabilities. It all started with a different perspective, which then expanded into technological implementation and innovation. The advanced technology, which is driving not only internalization but also standardization, is transforming everything. Toss Bank firmly believes that technology has the power to change lives. More than 55% of Toss Bank's workforce is made up of IT and development professionals, including data experts, machine learning specialists, and AI professionals. Toss Bank has the unique ability to develop most of its internal solutions in-house, showcasing the company's advanced digital technology capabilities.