KakaoBank and K Bank will jointly move to develop ideas for financial products and services for small businesses.

KakaoBank said on Aug. 31 it signed an agreement with K Bank on Aug. 28 to jointly host the "Finance Idea Contest for Business Owners".

The contest is designed to identify financial needs and inconveniences that arise during small businesses' operations and to develop ideas for new financial products and services that reflect them.

Participants can propose ideas by choosing at least 1 of 3 tasks: marketing to raise awareness of non-face-to-face loans for small businesses; planning new financial products and services based on customer interviews; and identifying and resolving financial pain points for small businesses.

Each task includes interviews with at least 10 small business owners. The two banks plan to reflect the financial inconveniences and needed services experienced by small business owners in the ideas.

The two banks will select winning entries after a review by their business divisions and external judges. They plan to hold an awards ceremony in November.

Total prize money is 34 million won. The grand prize winner will receive 20 million won, 2 excellence award teams will each receive 5 million won, and 2 merit award teams will each receive 2 million won. The two banks also plan to consider ways to use strong ideas in future small business financial products and services, and in marketing.

Kim Sung-soo (김성수), head of KakaoBank's lending division, explained, "We prepared the contest to find ways to reduce the difficulties faced by small business owners through ideas from the younger generation."

Kim Min-chan (김민찬), head of K Bank's Corporate group, said, "I hope this contest becomes an opportunity to think about financial products and services that provide real help to small business owners."