"Opening Fire"... Financial Firms and Companies Heat Up Competition for 'Data Leadership'

As the Data Economy Starts Up
Busy Recruiting Talent and Forming Alliances

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[Asia Economy Reporter Kim Hyo-jin] As data integration between different industries becomes possible and the Personal Credit Information Management Service (MyData) system is implemented, signaling the start of the 'data economy,' competition among financial companies to secure data dominance is intensifying.

Notably, companies are reorganizing their teams by recruiting data experts and forming alliances centered around data.

However, some express concerns that the sharply segmented data analysis may reveal disparities in added value between regions and social classes, potentially creating blind spots in economic services.

According to the financial sector on the 22nd, KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup Financial Group, and others have recently hired dozens of external specialists and assigned them to fields such as big data, information and communication technology (ICT), and artificial intelligence (AI).

KB Kookmin Bank and NH Nonghyup Bank had early on recruited digital and data experts with experience at Samsung and other companies, entrusting them with key related tasks.

Woori Financial Group is gaining attention for its 'digital and data alliance' with KT. On the 19th, the two companies signed a memorandum of understanding (MOU) to strengthen cooperation on various data projects through financial and ICT convergence.

Since MyData business participants are expected to offer similar services by industry, the plan is to develop differentiated services by combining financial and telecommunications data and maximize synergy through joint ventures (JV) and other means.

Shinhan Card and SK Telecom recently launched the 'first heterogeneous data integration product' at the Financial Data Exchange operated by the Financial Security Institute, which combines card consumption and mobility pattern data to analyze where and how consumers mainly spend during travel and leisure activities.

Shinhan Bank is collaborating with CJ OliveNetworks and LG Uplus to produce integrated data on consumption behaviors by region and commercial district. KB Kookmin Card is also cooperating with CJ OliveNetworks on data collaboration.

Concerns Over 'Exclusion' as Regional and Class Disparities Become Apparent
"Efforts to Maximize 'Data Publicness' Must Follow"

Financial companies are particularly focusing on developing data products that compare and analyze consumers' financial and spending capabilities by unit regions. For example, among the products registered on the Financial Data Exchange, the most viewed is information on income, expenditure, and financial assets by region within a specific local government registered by a commercial bank.

Data on spending capabilities according to region, occupation, gender, and age is attracting attention across various sectors including banking, cards, securities, insurance, real estate, and daily life.

A representative from a card company participating in data trading said, "From a corporate perspective, they inevitably seek data that can reduce costs and increase profits through selective and focused marketing," adding, "It is natural to focus on discovering data that sells well."

An official from the financial sector involved in establishing financial authorities' data policies reflected, "Data that some financial companies or businesses have exclusively used is now being widely opened and popularized, but there has been somewhat insufficient thorough analysis of the potential side effects this trend might cause."

He continued, "Regions and classes that seem profitable will be more distinctly distinguished in marketing aspects from those that are not, and certain regions or classes may become excluded from the economic service structure," emphasizing, "Government-level inspections and measures to maximize the public function of data must consistently follow."

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