Card Companies Seeking New Revenue Streams Amid Profit Decline: "Capture the MyData Market"

Financial Authorities Expected to Announce First MyData Licenses in October
Card Companies Fight to Secure Licenses to Dominate Data Market

[Asia Economy Reporter Ki Ha-young] With the enforcement of the amendment to the Three Data Laws, the MyData market is officially opening, and credit card companies are competing to launch related services. This is interpreted as a strategy to secure the MyData business rights and gain an advantage in the future growth industry of data.

According to the credit card industry on the 13th, each card company is competitively releasing services related to MyData. Shinhan Card was selected as a demonstration project operator in the small business sector for the "2020 MyData Demonstration Service Support Project" led by the Ministry of Science and ICT. Through this, they plan to introduce a credit evaluation service that integrates data such as sales, commercial district, real estate transaction information, key money, and rent. Additionally, they have formed a strategic partnership with SK Telecom, a telecommunications operator, related to big data business.

KB Kookmin Card also launched 'Liiv Mate 3.0,' an integrated membership platform of KB Financial Group revamped around MyData-related services. Liiv Mate 3.0 operates under the motto 'Asset Management Center,' helping customers grow and nurture their assets by connecting and informing them of benefits tailored to their consumption patterns. The curation function, which recommends optimal customized products through asset status and consumption data analysis, has been enhanced.

Hana Card plans to build a 'MyData-based Mobility Support Transportation Service Platform for the Disabled' by forming a consortium with the Korea Institute of Science and Technology Information (KISTI) and Daejeon City. Samsung Card and Woori Card have established organizations related to the MyData business and are preparing for full-scale operations, while Hyundai Card is preparing personalized customized services for the second half of the year.

The reason credit card companies are competitively entering the MyData business is part of a strategy to secure the data market, which is gaining attention as a new growth area amid a significant decline in commission profitability. MyData refers to the opening and utilization of personal data with the consent of the data subject. If individuals consent, they can receive customized services such as information and asset management by utilizing data scattered across financial institutions like banks and card companies.

Earlier, financial authorities began accepting preliminary MyData license applications from the 5th and started the review process. They plan to select up to about 20 companies in the first round, with the first MyData selection results expected around October.

An industry official said, "To secure the MyData business rights, entering the first selection is essential to gain an advantage in expanding the business and the MyData market." He added, "In the preliminary demand survey, more than 120 companies, including fintech firms such as Naver and Kakao as well as financial companies, expressed their intention to participate, so competition is bound to be fierce."

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