- Korean banking groups fear the coffee giant Starbucks can be their competition.
- These banking groups mentioned that this coffee making industry might replace all the payment method
We all know about the United States Coffeehouse chain, the “Starbucks” for its brilliant taste of coffee, but did you know that this coffeehouse has the potential to expel the Korean Banking groups? Well, this is actual news as these Korean Banking groups fear the coffee giant’s power to be their competition.
“Starbucks has been regarded as a fintech firm, not a coffee company, over the past few years. The removal of the word coffee from its signboard also proves this.”
– These were the kind of statements that were heard from many of the bank officials.
These banking groups mention their fear against Starbucks that this coffee making industry might replace all the payment methods. According to the Wall Street Journal, it was seen that Starbucks has a $1.2 billion net worth for its customers to have loaded gift rewards on their app.
Their mobile application had outnumbered the major American provincial banks had as deposits. These free prepaid gifts given in their cards and apps could only be used at the stores, thus making Starbucks even more popular each day.
Why Korean Banks Concerned About “StarBucks”
This fear came up from 2018 in the Korean banking groups when Starbucks announced its new methodologies to enter and invest in the digital currency. With Bakkt as their first official partner, they invested in the crypto, thus marking a milestone in its history. The cash amount which the ‘coffee shop‘ owns is estimated to be $60.2 million.
The issue has been such a huge concern that it is the new hype of the country. KB Financial Group’s Chairman, Yoon Jong-kyoo, KB Kookmin Bank CEO Hur Yin, and NongHyup Financial Group Chairman Kim Gwang-soo, all of them have mentioned their some of the other concerns for the issues related to this issue.
A banking group, the Hana Financial Group’s chairperson, Kim Jung-Tai, mentions his concerns for the same.
“Technologies have allowed coffee companies like Starbucks to be our rivals.”
He further goes on making this statement that Starbucks is an unregulated bank, not a small coffee company.
Many of the known personalities have even started observing the ‘coffee shop’ so that they can learn from their culture, tactics, and methodologies.
Even the financial institutions of the country have shown their interests in Starbucks with a positive sight as it plans to launch its prepaid cards for currency exchange, loan, and insurance purposes soon. In 2018, Starbucks Vice President Michele Waits was invited to share the company’s insights for the betterment and evolution in the financial world.
Thus, at last, Starbucks seems to make huge leaps into the financial world as well, along with its new taste of coffees! So have a coffee and think about it, maybe!