Bank robo-advisor service users up 40.6% from January to July

Total investment reaches 40.7 billion won, up 66.8% over same period

Average investment per account rises from 2.85 million to 3.38 million won

Customers delegate IRP management to algorithms amid market volatility

Demand for AI algorithm-managed IRP accounts has been building steadily as stock market volatility increases. [Image created with ChatGPT]
Demand for AI algorithm-managed IRP accounts has been building steadily as stock market volatility increases. [Image created with ChatGPT]

Among the robo-advisor discretionary managers for IRP, one has posted a one-year return as high as 39.74%.

한 은행 관계자

The number of bank customers entrusting their individual retirement pension (IRP) accounts to AI-powered robo-advisor (RA) services has grown more than 40% in the first seven months of this year.

Four banks — KB Kookmin Bank, Hana Bank, Woori Bank and NH NongHyup Bank — currently offer RA discretionary management services for IRP accounts, according to the banking industry. As of the end of July, the combined number of RA service users at these banks stood at 12,035, up 40.6% from 8,561 at the end of January. Total investment reached 40.7 billion won ($29.4 million), a 66.8% increase over the same period.

What stands out is that investment amounts are growing faster than the user base. The average investment per account rose 18.6%, from 2.85 million won at the end of January to 3.38 million won at the end of July. Existing users adding more funds — rather than new sign-ups — are driving the growth. Analysts say rising stock market volatility is prompting more investors to hand portfolio management over to algorithms rather than trade directly.

The pace of growth is gradually moderating. The month-on-month increase in user numbers slowed from 9.3% in February to 2.4% in July, while investment growth eased from a peak of 14.1% in March to 4.0% in July. Analysts say the service has moved past its initial rapid-expansion phase and is settling into a more stable growth trajectory.

Woori Bank and KB Kookmin Bank are broadening their user bases, while NH NongHyup Bank is seeing higher per-customer investment. Among the four banks, Woori Bank recorded the highest growth in RA service users, up 88.4% from the start of the year. KB Kookmin Bank led in per-customer average RA investment growth, at 34.8%.

NH NongHyup Bank had the highest average RA investment per customer at 6.33 million won, roughly double that of the other banks. An NH NongHyup Bank official said December & Company, one of the robo-advisor discretionary managers partnered with the bank, has posted a one-year return of 39.74%, adding that AI Quantec (23.81%) and Mirae Asset Global Investments (18.57%) are also delivering double-digit returns. "These strong performances are driving the increase in RA investment," the official said.

The gap between banks largely reflects differences in when they launched the service. Hana Bank was the first to introduce RA discretionary management, in March 2025, followed by NH NongHyup Bank, KB Kookmin Bank and Woori Bank in that order. Banks that launched later are still in the early expansion phase, which explains their higher growth rates.

The retirement pension RA discretionary service became possible after the Financial Services Commission designated it an innovative financial service in December 2024. Under the model, a verified algorithm automatically builds a portfolio tailored to each investor's risk profile and directs how IRP savings are managed — a departure from the previous system, in which IRP holders had to issue investment instructions themselves. Seventeen discretionary investment managers were designated at the time, and in March 2025, Fount Investment Advisory and Hana Bank launched the first such service in the banking sector.

Each bank has partnered with different discretionary investment managers. Hana Bank works with Fount Investment Advisory and Mirae Asset Global Investments; NH NongHyup Bank with Mirae Asset Global Investments, December & Company and AI Quantec; and KB Kookmin Bank with December & Company, Mirae Asset Global Investments and Korea Investment Trust Management.

Woori Bank has partnered with AI Quantec and Quantit. It also runs an expert-curated portfolio subscription service, sending monthly IRP portfolio research notes to interested customers so they can make their own investment decisions based on professional advice.

Meanwhile, Shinhan Bank is working toward launching its own RA discretionary service before the end of this year.


won@heraldcorp.com