Expansion of Services for Individual Entrepreneurs Including Platform Provision and CB Business
[Asia Economy Reporter Ki Ha-young] Card companies are diversifying their businesses by expanding services targeting self-employed individuals and small business owners.
According to the industry on the 15th, Lotte Card completed the notification of 'providing platform services for individual business owners' as an ancillary business to the Financial Supervisory Service on the 8th. Lotte Card plans to launch platform services for individual business owners in the second half of this year, offering integrated information inquiries such as sales details and marketing services. In particular, it is expected that this platform will help self-employed individuals and small business owners who are struggling due to COVID-19.
Other card companies are also operating platform services that support data analysis and marketing for individual business owners. Shinhan Card provides fund management, marketing, and financial services for small business owners through the small business win-win marketing platform 'Shinhan Card My Shop Partner.' Samsung Card supports personalized marketing based on big data centered on the 'Link Partner' platform. KB Kookmin Card also operates the 'Smart Offering System,' a marketing operation system based on big data, and BC Card supports marketing services for small business owners through the 'MyTag' platform.
Merchants Receive Marketing Support, Card Companies Secure Data
Merchants receive sales analysis and marketing strategies through card companies' platform services, while card companies provide the platform and secure data on merchant sales and consumer trends. From the card companies' perspective, it is analyzed that they can prepare a foothold for entering new businesses through the accumulated big data.
In particular, such platforms are evaluated to potentially serve as a foundation for future individual business owner credit evaluation (CB) businesses. Since the Financial Services Commission selected credit evaluation for individual business owners by card companies as an innovative financial task in 2019, major card companies have been intensifying their credit evaluation businesses for individual business owners. It is possible to re-evaluate the credit status of individual business owners, which was difficult to assess with existing credit scores, using various information and attract them as potential customers by linking loan services targeted at them.
An industry official said, "Amid expectations that card companies' profitability will deteriorate this year due to the reduction of the maximum interest rate and the recalculation of merchant commission rates, they are providing platforms to small business owners and diversifying their businesses through the accumulated data."
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