Latest news with #ChristopherMarquis
Forbes
20-05-2025
- Business
- Forbes
From Access To Equity: Toss Bank's Approach To Financial Transformation
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.
Forbes
08-04-2025
- Business
- Forbes
Brewing Change: How Suki Tea Is Tackling The Tea Industry's Hidden Environmental Costs
Suki Tea has embraced ethical sourcing, plastic-free packaging, and workplace wellbeing to build a ... More more sustainable tea business. In an era of heightened awareness around plastic waste, carbon footprints, and ethical supply chains, the food and beverage industry faces growing pressure to align everyday consumer goods with sustainable values. Tea is one of the most popular beverages worldwide, with an estimated 2.16 billion cups consumed every day and a global market value exceeding $50 billion. However, this massive industry carries substantial environmental consequences. According to some estimates, the total carbon footprint of tea production amounts to 31.5 kg CO2e per kg of tea, with packaging (53%) and consumption (13%) representing the largest contributors. This translates to approximately 28 million tons of CO2 equivalent annually from global tea consumption alone, comparable to the emissions of entire small countries. Perhaps more alarming for consumers is the discovery that a single plastic teabag can release approximately 11.6 billion microplastics and 3.1 billionnano plastics into a cup of tea. These microscopic particles can potentially enter the bloodstream, posing potential health risks. Studies also suggest that discarding old tea bags can clog landfills and release harmful chemicals into the soil and groundwater. From pesticide use and deforestation in cultivation regions, to single-use plastic in packaging and opaque supply chains, the sector's challenges mirror those of many global industries navigating the balance between scale and sustainability. Against this backdrop, Belfast-based Suki Tea offers a case study in how small businesses can not only respond to these concerns, but lead innovation within their sector. Founded in 2005 with a mission to bring high-quality, ethically sourced tea to a broader audience, Suki Tea has evolved into a brand recognized not only for its products, but for its progressive practices. From early adoption of Fairtrade principles to recent B Corp certification, the company has consistently prioritized social and environmental integrity alongside growth. A key focus for the company has been plastic reduction. By transitioning to fully compostable packaging and eliminating glue-backed labels, Suki Tea is addressing one of the tea industry's most persistent environmental issues—microplastic contamination. Their investment in a purpose-built facility powered by renewable energy exemplifies how operations can be reimagined around climate-conscious design. Yet perhaps more notable is how the company integrates sustainability throughout the value chain: through audits, employee engagement, and ongoing collaboration with academic institutions and policy bodies. Read more below in my interview with Oscar Woolley, co-founder of Suki Tea below. Christopher Marquis: Sustainability has been central to Suki Tea from the beginning. How has your approach to sustainability evolved over two decades, and what were some of the biggest challenges along the way? Oscar Woolley, co-founder of Suki Tea Oscar Wooley: From the outset of Suki Tea, sustainability has been a top priority for us, driven by a belief that business should be a force for good. We were early adopters of Fairtrade and Real Living Wage practices, for example, and have always been on the lookout for ways to be greener. In terms of challenges regarding sustainability, one of the biggest has been breaking down the enormity of the task at hand to be more socially and environmentally aware. We engaged with our network to make this happen – undergoing the Climate Action Programme as a team with Business in the Community (BITCNI) propelled our strategies and team engagement, as did becoming members of the Responsible Plastic Management and performing all-team training and plastic audit on the business. Suki Tea was also one of the first companies in the UK to achieve BITCNI's Take 5 Workplace accreditation in recognition of its wellbeing provision for employees. Signatories of the Climate Action Pledge since 2019 have brought impactful Scope 1 and 2 reduction strategies and a great focus on Scope 3. We have also taken on board placement students from the QUB (Queen's University Belfast) Leadership in Sustainable Development to assist us in projects around assessing business travel and end-of-life disposal of our packaging. My co-founder Annie Irwin also sits on the Environment Leadership Team of Northern Ireland as the small business voice, and to gain insight and direction for the company. Furthermore, major recognition of our sustainability efforts came with us last year (2024) obtaining B Corp certification - a major milestone. Marquis: You recently moved to an eco-friendly factory. What are the features of the factory that make it sustainable, and why is 'plastic-free tea' important? Wooley: We relocated to a state-of-the-art, purpose-built production facility near Belfast, which we designed with sustainability at its core, and it runs on up to 100% wind energy, with solar panels generating 17% of its electricity and heating. And we've prioritised reducing waste at every step of production. The glass-fronted HQ is more than just a workspace – it's a statement of what we stand for. It's not only full of sustainable tea-making machinery, but is also decorated with gorgeous artworks from local art school students Suki Tea has supported over many years through grants of up to £5,000. Among those supported is talented Irish artist Ursula Burke. We are passionate about plastic-free tea as there are concerns about plastics in conventional teabags being dangerous for both the environment (including oceans), being slow to biodegrade, and for consumers, who can potentially ingest microplastics. Suki Tea is using a new method of printing directly onto compostable bags, which eliminates the last traces of plastic in packaging. Tea is a wonderfully natural product - and should not be tainted with plastics through either the convenience of placing it in a teabag, or the way its outer packaging is made. Marquis: You are soon to remove glue from your packaging to go fully plastic-free. What room is there for further innovation in sustainable production and distribution methods? Wooley: That's right, we're saying goodbye to glue-backed labels entirely. The label-backing material made of a composite plastic is the kind that has the largest environmental impact – we've put an estimated 300 kilograms of this into our mixed waste bin for landfill in the last 12 months alone. We identified this as one of our biggest sources of plastic waste in a recent plastic audit, and can now reduce this. We're looking at potential advances in carbon footprint reduction across our distribution channels, and are always examining ways to reduce our environmental impact in sourcing, while we strive to buy local where possible. On the tea front, we plan purchases up to two years ahead to ensure the product can be produced and shipped in the most efficient way possible, in bulk, so that we aren't operating in a 'just in time' scenario whereby deliveries would be smaller and more frequent - and have a higher carbon footprint. Marquis: Making supply chains greener is one of the biggest challenges for any industry. What can the tea industry do to improve in this area? More generally, what does the tea industry need to do to become more ethical and sustainable? Wooley: Transparency and traceability are key, and we knew from the early days of Suki Tea that working with Fairtrade and sustainable farms was the only way forward. Ethical sourcing practices, ensuring fair wages and working conditions at farms, should be the norm in the industry. In terms of tea sustainability, we're looking forward to discussing suggested measures - such as the environmental impact of growing the product and challenges faced by smallholder farmers - with the B Corp network. We're always looking for new ways to become more sustainable, and we see that even small innovations can collectively make a big difference. Marquis: Suki Tea recently became a B Corp. Why was this important to you? What did you learn through the process? Wooley: B Corp status affirms commitment to sustainability, social impact, and ethical business. We in fact kicked off our 20th anniversary year by becoming Northern Ireland's first certified B Corp tea company at the first attempt. We felt our score of 98.3 was a very strong result for a first-time certification, and testament to the importance of the company's ethical and environmental initiatives, including the introduction of compostable packaging that has removed 10 tonnes of plastic from circulation. It was a really pivotal moment for the team, and we believe it demonstrates accountability in all areas: sourcing, production, employee welfare, and governance. The biggest takeaway from the certification was that, over the years, all our efforts in team welfare, sustainable sourcing and delivering the best quality, honest tea in considered packaging were all part of the bigger picture, and encapsulate Suki Tea's ethos and culture. Sustainability is a cornerstone of our business, and we have more work to do to finalise our net zero plan with integrity and ownership of the plan. Marquis: You mentioned that when you started out in speciality tea, you wanted it to be seen in the same way as speciality coffee. Are there lessons that can be learned from the coffee industry on sustainable and ethical practice? Wooley: The speciality coffee sector set the standard for ethical sourcing and consumer education, and loose-leaf tea now mirrors its emphasis on quality, origin, and ethical production. Direct trade models that are commonplace in the coffee industry are not so in the tea industry (albeit not unheard of), because of the way the majority of the latter operates through world market auctions and regional export/importers. Our commitment and advocacy of Fairtrade certified tea also narrows down our sourcing, but this is important for us to hold ourselves up the high standards of Fairtrade. Baristas are uniquely positioned to champion sustainable practices. In coffee, they're supported by influential organisations like the SCA (Specialty Coffee Association). I sit on the board of the European Speciality Tea Association, which is working towards helping baristas elevate the industry's ethical and responsible standards through their education platform. Marquis: To what extent does demand play a part in the drive towards more sustainable and ethical practice, both for Suki Tea and the wider industry? Wooley: Welcome to the rise of the savvy tea consumer. We very much see consumer demand for transparency and sustainability growing at a rate of knots, and ethical production is no longer a niche expectation – it's absolutely mainstream. Our B Corp certification, plastic-free packaging, and carbon-conscious production align with these evolving expectations. Improving labour standards for the tea farmers requires a significant shift in industry practices as some big brands battle for the supermarket space, driving down the quality for 'competitive' pricing to achieve volume sales. As informed buyers prioritise quality and transparency, both specialty and mass-market brands should adopt responsible sourcing and packaging, raising standards across the board. Suki Tea started with a commitment to quality and a lot of creativity. Now, we want to bring it to even more people, and there's loads more to come from us across the UK and internationally. Tea is all about connection, and we're grateful to be a part of that. It's fair to say tea transformed our lives!
