"Breakthrough is the Platform"...Card Companies in Crisis Accelerate Leap to 'Platform Business'

Emphasizing Platform Evolution Through Digital Transformation in New Year's Address

[Asia Economy Reporter Ki Ha-young] This year is expected to be the inaugural year for the card industry to leap forward as a financial platform based on digital transformation. This is due to the deteriorating business environment surrounding the card industry, such as merchant fee reductions and interest rate hikes, as well as the need for structural reform amid the expanding influence of big tech companies within the payment industry.

According to the industry on the 5th, card companies have collectively emphasized evolution into platforms based on innovation and change as their management goals for this year. They are focusing on their core business of payment services while preparing to leap into comprehensive payment services based on digital innovation.

Shinhan Card CEO Lim Young-jin emphasized in his New Year's address this year, "Let us continuously evolve into a top-tier platform company through breakthrough growth that overcomes uncertainties with Shinhan Card's differentiated 'deep play'." The aim is to secure leadership as a life and finance platform company. To this end, he presented four major agendas (P.L.A.Y): ▲Maximizing core competitiveness (P) ▲Diversifying new growth revenue (L) ▲Activating data and digital (A) ▲Cultural transformation (Y).

Lee Chang-kwon, newly appointed CEO of KB Kookmin Card, also stated, "We must restore the status of the number one card company and lead the market as the number one financial platform company." To achieve this, Lee emphasized ▲Customer-centric management and strengthening core business competitiveness ▲Transformation into a top-tier platform company ▲Expansion of new business foundations and pioneering future finance through new technologies such as the metaverse ▲Leading ESG (environment, social, governance) as a driver of societal change ▲Creating a creative and agile organization.

Hyundai Card pledged to solidify its position as a financial tech company based on data science. Hyundai Card Vice Chairman Chung Tae-young cited "quantitative growth and qualitative shift" as this year’s keywords, stating, "Ultimately, companies with technology are leading the industry," and added, "We plan to solidify our position as a data science-based financial tech company by introducing a fast rhythm that checks project progress quarterly." The qualitative shift is a new term coined by Hyundai Card and Hyundai Commercial combining qualitative growth and positioning shift.

Samsung Card emphasized leading the market from the perspectives of customers, products, and channels based on principled management, change, and innovation. Samsung Card CEO Kim Dae-hwan urged, "Let us focus all concerns and efforts on customers to provide differentiated value," and added, "We must concentrate on the essence and challenge in new ways."

Lotte Card also emphasized a major transformation into 'DigiRoca,' stating, "This year must be the inaugural year to create our own digital model." Lotte Card CEO Jo Jwa-jin said, "This year, we must go beyond the existing credit card business model and create a new future-oriented model that delivers maximum convenience and benefits to customers," presenting five strategic directions for this: ▲DigiRoca ▲Captive Roca ▲Outside-in Roca ▲Credit Roca ▲ESG Roca.

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