Capture the 'MyData' Market... Card Companies Compete to Launch Related Services (Comprehensive)

Upcoming October 1st Phase MyData License Announcement Expected
Crucial Battle to Secure License for Data Market Domination

[Asia Economy Reporter Ki Ha-young] As the MyData market officially opens with the enforcement of the amendment to the Three Data Laws, 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 sector of the data industry.

According to the credit card industry on the 13th, each card company is competitively releasing services related to MyData. Given their abundant payment data, they claim to have the foundation to promote MyData businesses on par with big tech companies like Naver and Kakao. MyData refers to the opening and utilization of personal data with the consent of the data subject. With individual consent, data scattered across financial institutions such as banks and card companies can be used to provide customized services like information and asset management.

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 Office,' helping customers grow and manage their assets by connecting and informing them of benefits tailored to their consumption patterns. It has strengthened its curation function that recommends optimal customized products through asset status and consumption data analysis.

Hana Card is also planning 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.

First MyData Licenses Expected to be Announced in October

Credit card companies are competitively entering the MyData business as a strategy to secure a foothold in the data market, which is gaining attention as a new growth engine amid a significant decline in commission profitability. Since data-based innovative financial services such as data analysis and financial product advisory and recommendation services can be created, the entire financial sector is keenly interested in the MyData business.

Previously, financial authorities began accepting preliminary MyData license applications from the 5th and started the review process. The licensing process is expected to take at least three months, including two months for preliminary approval and one month for final approval. The financial authorities plan to select up to about 20 companies in the first round, with the first MyData selection results expected around October.

An industry insider 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." They added, "Since more than 120 companies, including fintech firms like Naver and Kakao as well as financial companies, expressed their intention to participate in the preliminary demand survey, competition is bound to be fierce."