Card Industry CEOs: "This Year Is Difficult Again... 'Innovation' Is the Only Way to Survive"

New Year's Message from the Card Industry
Calls for Digital Innovation and Stable Profit Securing

[Source=Yonhap News]

[Asia Economy Reporter Ki Ha-young] Last year, credit card company CEOs, who faced a challenging year including the reduction of franchise fees, set digital innovation and stable profit securing as their goals for this year. This is interpreted as a strategy to maintain profitability amid a tough environment surrounding the card industry, such as low growth and low interest rates.

According to the card industry on the 2nd, Im Young-jin, CEO of Shinhan Card, said in his New Year's address, "2020 should be the first year of another decade to create a new growth history for Shinhan Card," emphasizing, "With the spirit of 'Geukgi Sangjin'?overcoming myself and constantly moving forward?let's surpass yesterday's Shinhan Card, lead a deep wave in the market, and transform from 'number one' to 'world-class'."

To this end, CEO Im presented five major agendas: 'World-class Shinhan and One Shinhan, strengthening leadership in the payment market, accelerating multi-finance, creating differentiated value in platform business, and evolving core competencies.' In particular, Shinhan Card plans to strengthen its platform business to become a game changer that creates differentiated customer experiences and business models. To achieve this, it will actively promote MyData businesses such as Personal Expense Management (PEM) and Personal Financial Management (PFM), innovative financial businesses like My Remittance and My Credit, and lead 100% digital card life linked with hyper-personalized marketing.

Lee Dong-chul, CEO of KB Kookmin Card, also emphasized business innovation encompassing both core and new businesses. For this, he set three management goals for this year: ▲ focusing on customers and fundamentals ▲ securing firm differentiation in digital competitiveness ▲ continuously expanding new business areas for business structure innovation. CEO Lee stated, "To differentiate digital competitiveness, it is necessary to continuously adopt new technologies and read trends with a fresh perspective to lead the market," adding, "Internally, small innovations for digital transformation must be continuously promoted across all business areas."

Won Ki-chan, CEO of Samsung Card, urged, "This year, we must secure the constitution and capabilities to respond to future environments and advance as a world-class Samsung Card that innovates the future through openness and challenge." To this end, he proposed expanding the member base, strengthening personalized customer experiences, deepening data analysis and digital utilization capabilities, and creating new customer value beyond payments and finance.

Kim Chang-kwon, CEO of Lotte Card, asked to focus on establishing a 'stable growth structure' and building a 'strong organization.' To this end, he ordered key tasks such as a performance-oriented management system, advancement of digital innovation, building a flexible and dynamic organizational culture, and creating a solid profit structure. CEO Kim said, "We must set more bold and challenging 'Stretch Goals' and strengthen the linkage of department goals through cascading so that all members can immerse themselves in common objectives." This year, Lotte Card also selected a new slogan, 'PROACTIVER,' to share the vision of a new organizational culture.

Jang Kyung-hoon, CEO of Hana Card, proposed continuing policies to strengthen basic capabilities, internalizing the digital value chain across all business sectors, and diversifying profit sources through new businesses. CEO Jang emphasized, "From customer acquisition and marketing to settlement, we must create a strong Hana Card with the mindset of becoming a digital payment company through digitalization of all tasks," adding, "Compared to competitors, we must create new profits by utilizing strong global sectors, auto installment finance, and customer and payment-related data in business."

This content was produced with the assistance of AI translation services.