KakaoBank has launched a savings product that uses artificial intelligence to support customers from setting savings goals to managing payments and rejoining after maturity. If a customer fills the targeted amount by maturity, the bank offers a maximum annual interest rate of 5 percent by adding up to 2 percentage points in preferential interest.

KakaoBank said on Oct. 13 it will launch a free-deposit product, called the AI Goal Savings, with an AI coaching function. KakaoBank said it is the first in the financial sector to apply an AI coaching function to a savings product.

Eligible customers are Korean nationals aged 14 or older under real names who hold a KakaoBank demand deposit account. Each person can open up to 1 account. The term ranges from 3 months to 12 months, and customers can deposit freely up to 1,000,000 won per month.

The base interest rate is 2.00 to 3.00 percent per year depending on the term. If customers deposit at least once a month and meet the goal amount set at maturity, they can receive up to 5.00 percent per year by applying a preferential interest rate of up to 2.00 percentage points.

At the subscription stage, the AI proposes a target amount, monthly savings amount and deposit period based on the savings purpose. For example, if a customer selects "Going on a Europe trip", it suggests depositing 600,000 won a month for 12 months to save 7.2 million won. Customers can also set the target amount or term themselves.

After joining, the AI provides guidance such as additional deposits based on the customer's saving pace and account status. It identifies cases such as when a salary is paid in, when extra funds become available, or when the customer has not deposited by the end of the month, and provides app notifications. Customers can choose the AI advice style from "kind pacemaker", "cold hard-truth trainer" and "honest casual best friend".

KakaoBank will also run a launch event from Oct. 14 to Nov. 3. Among customers who join, it will pay a total of 24 million won in "goal support funds" to 90 winners through a draw: 1,000,000 won to 10 people, 300,000 won to 30 people, and 100,000 won to 50 people.

A KakaoBank official said, "We combined AI with savings so customers do not lose their momentum to achieve their goals." The official added, "We will continue to expand the savings experience that combines finance and technology."