"Securing the Data Market"... Card Industry Strengthens Data Alliances (Comprehensive)

Shinhan Card, SKT, KCB, GS, and Others Promote Alliance
Long-term Goal to Build 'Private Data Dam'

[Asia Economy Reporter Ki Ha-young] The card industry is strengthening data alliances to secure the future growth engine of the data market. By combining and analyzing data from a wide range of fields, they plan to provide customized services to customers and deliver new innovations.

Shinhan Card announced on the 4th that it is promoting a data business alliance with SK Telecom, the No. 1 mobile carrier, Korea Credit Bureau (KCB), which holds credit information of 44 million people, and GS Retail and Home Shopping, which possess top-tier distribution data in Korea. Various companies from different industries, including existing partners such as Homeplus, Danal, Inicis PG companies, and Real Estate 114, are also participating in this data business alliance. The long-term goal is to build a 'private data dam' that collects, combines, analyzes, and distributes all data in the private sector.

Shinhan Card expects to continuously expand the open alliance in the future, with additional participation from data companies in automotive, manufacturing, fashion, medical, transportation, and lodging sectors, as well as data analysis specialists, consulting firms, and system and solution companies.

Through this data alliance, it is anticipated that most of the nation's consumer activities will be analyzed by combining various pseudonymized information such as consumption, mobility, credit, product categories, and online data from participating companies. These combined data products and data-based subscription services are expected to assist companies in marketing strategies, consumer analysis, and responding to future markets.

Shinhan Card also plans to promote projects supporting the establishment and improvement of public policies by closely cooperating with government-led public data dams, financial data, and the Korea Data Exchange, combining public data.

A Shinhan Card official said, "As Korea's top data companies are participating in this data alliance, it is expected to be a significant stepping stone for the development of the domestic data industry," adding, "We will continuously strive to revitalize the data economy."

Card Industry Focuses on Big Data-Based Business Capabilities

Not only Shinhan Card, the industry leader, but all card companies are focusing their capabilities on big data-related businesses. In a rapidly changing payment environment and fierce competition with big tech, big data is one of the crucial markets that will determine the fate of card companies in the future.

Hyundai Card is promoting a data alliance called the 'Domain Galaxy' with PLCC (Private Label Credit Card) partners while consecutively launching PLCCs in the market. A representative example is 'Galaxy North,' a platform that enables marketing collaboration based on data among 13 PLCC partners including Korean Air, Starbucks, and Naver.

BC Card also formed a data alliance at the end of last year, the first in the financial sector, with three PG companies?KG Inicis, Danal, and Settle Bank?and four value-added network (VAN) companies?Nice Information & Telecommunication, KICC, KSNET, and Smartro. By combining BC Card’s card payment data with purchase item data from sub-merchants of the seven participating companies, they plan to lead innovation in consumer benefits.

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