On September 23, 2025, Toss Bank, a leading South Korean internet-only bank, made waves in the financial sector by announcing that its children-focused banking platform, 'Toss Bank Kids Service,' had surpassed one million accounts. But that wasn’t the only headline-grabber: the bank also revealed it had issued 1 billion won worth of innovative 'AI insurance' coverage, a product designed to protect young digital consumers from the unique risks posed by artificial intelligence in the online financial world.
This dual milestone highlights Toss Bank’s rapid evolution from a disruptive upstart to a trendsetting institution, blending cutting-edge technology with family-friendly banking services. According to ekoreanews and Financial Post Korea, the Kids Service is a comprehensive suite that includes the 'Kids Account,' 'Kids Savings,' 'Kids Check Card,' and an 'Interest-Earning Piggy Bank.' The platform is not just about saving pocket money; it’s aimed at teaching children real-world financial skills and giving parents the tools to guide them along the way.
What sets Toss Bank apart is its digital-first approach. For the first time in South Korea, parents can open accounts in their minor children’s names without ever stepping into a branch or wrestling with paperwork. Everything—from opening a savings account to issuing a check card—can be handled seamlessly through the Toss Bank app. The process is so streamlined that even the document verification is automated, reflecting the bank’s commitment to making banking accessible for families with children aged 0 to 16.
“The Kids Service is more than just a financial product for children; it provides an experience where parents and kids can learn and grow together financially,” a Toss Bank spokesperson told ekoreanews. The sentiment is echoed by many parents, who appreciate being able to directly manage and monitor their children’s accounts while also granting them a measure of autonomy. After all, learning by doing is often the best teacher.
But Toss Bank isn’t stopping at just teaching kids how to save. The newly launched 'AI insurance' product is a bold step into uncharted territory. This insurance covers a range of AI-related financial risks, including issues with AI control, AI option contracts, and even AI-linked check cards. As internet banking becomes more sophisticated—and as artificial intelligence plays a bigger role in everything from automated savings to fraud detection—the need for consumer protection has never been more urgent.
The AI insurance product is designed to provide both insurance and hedging, giving parents peace of mind that their children’s digital banking experience is secure. According to Financial Post Korea, the product is available to the same demographic as the Kids Service: children and teens from birth up to age 16, with a striking 75.5% of users currently falling in the 12 to 16 age bracket. This reflects a broader trend: while younger children (ages 0 to 6) make up 7.9% and those aged 7 to 11 comprise 16.6% of users, it’s the tech-savvy teens who are leading the charge, actively using their check cards for everyday purchases like transportation, convenience stores, and online shopping.
Parents can do more than just open accounts—they can transfer funds, review transactions, and even make regular savings deposits on behalf of their children. For those looking to help their kids build a nest egg, the 'Kids Savings' account offers an eye-catching annual interest rate of up to 5% (before tax), provided automatic transfers are set up. The terms are straightforward: anyone up to age 15 can deposit up to 200,000 won per month for 12 consecutive months, making it a practical tool for cultivating consistent saving habits.
For children aged 12 and up, the experience becomes even more hands-on. They can receive their own check card, issued in their name, and start managing transactions themselves. This isn’t just about convenience; it’s about empowerment. By learning to handle money in real-life scenarios—whether it’s buying a subway ticket, picking up a snack at a convenience store, or shopping online—young users are developing the kind of financial literacy skills that will serve them well as adults.
Another standout feature is the 'Interest-Earning Piggy Bank,' which allows users aged 7 to 16 to earn daily interest on their savings at a rate of 1.6% per year (before tax). With just a click, children can see the interest accumulate, making the abstract concept of saving more tangible and, perhaps, a bit more exciting. It’s a small detail, but it speaks volumes about Toss Bank’s emphasis on making financial education both practical and engaging for kids.
As digital banking becomes the norm, so too do the risks. The rise of AI in finance brings with it new vulnerabilities—from algorithmic errors to cyber threats. Toss Bank’s AI insurance is, in many ways, a response to this shifting landscape. By offering coverage for AI-related financial risks, the bank hopes to boost consumer confidence and set a new standard for protection in the sector. “This product aims to provide coverage for AI-related financial risks and is expected to increase consumer protection,” Toss Bank stated, according to ekoreanews.
Industry observers see this as a strategic move. By targeting the next generation of digital natives—and their parents—Toss Bank is positioning itself as both an innovator and a guardian. The bank has made it clear that it plans to grow the AI insurance product into a new business model, potentially transforming the way internet banking institutions think about risk and security in the age of artificial intelligence.
Of course, the success of Toss Bank’s Kids Service and AI insurance is not just about flashy features or impressive numbers. It’s about fostering a culture where financial literacy starts early, digital security is taken seriously, and families can navigate the complexities of modern banking together. As more banks around the world look to emulate this model, the lessons from Toss Bank’s approach—simplicity, accessibility, and a forward-thinking attitude—are likely to resonate far beyond South Korea.
For now, with over a million young users and a billion won in AI insurance coverage, Toss Bank is making it clear: the future of banking is digital, inclusive, and just a little bit smarter.
