[Reporter’s Notebook] "Grateful for Being Passed By"... Speak with Data, Not Silence

Free from Fee Reduction Pressure,
But Card Companies Must Speak Up on Big Data Utilization

"We are actually grateful that presidential candidates are passing us by." This is what an employee at a credit card company told a reporter one day, two weeks before the presidential election. The employee meant that, since the usual campaign pledge to lower card transaction fees had not surfaced this time, there was a sense of relief. In reality, during the 19th and 20th presidential elections, card companies suffered considerable pressure from politicians seeking to win votes. Former President Moon Jaein pledged to significantly expand the criteria for preferential fee rates, while former President Yoon Sukyeol said he would lower simple payment fees to the same level as card companies. Lee Jaemyung, leader of the Democratic Party, also once promised to disclose high platform fees.

The logic of the political sphere was simple: "Cutting card fees will save small business owners." However, card companies have a different perspective. They argue that card transaction fees have already reached their lowest possible limits. In fact, the fee rate for merchants with annual sales of less than 300 million won has dropped from 2.12% in 2012 to just 0.4% now. Considering the value-added tax refund system, the actual burden felt by small business owners has decreased even further.

Against this backdrop, political circles have not brought up the issue of lowering card fees in the 21st presidential election. This suggests that they have concluded that the fee reduction card does not have a significant impact on voters. Card companies quietly breathe a sigh of relief. There is also a prevailing sentiment that "thanks to banks becoming the political target, we can quietly pass by this time."

However, card companies should not simply welcome this "passing by." They should now seek opportunities to use the presidential election, a public forum, to elevate their long-standing issues to the level of social agendas and utilize them strategically.

For example, the pledge by Kim Moonsoo, the People Power Party candidate, to provide "customized financial products and innovate credit evaluation systems for small business owners" is something card companies could actively leverage. This is because card companies possess abundant customer data and information on consumption patterns. Based on this data, they can develop new credit evaluation models for those with insufficient financial history (thin filers).

Additionally, it is worth considering ways for card companies to share their business district analysis capabilities with small business owners. For small and medium-sized business owners who struggle due to information asymmetry with large franchise corporations, big data could be opened to the public under certain conditions. This would also contribute to realizing social value, making it highly significant.

The presidential election is not a stage reserved only for politicians. It is also a rare opportunity for various sectors of society to bring their voices into public discourse. In fact, business groups such as the Korea Chamber of Commerce and Industry are raising their voices by publishing reports. The card industry should not hide behind the "passing by" of presidential candidates, but instead actively propose practical improvement tasks such as data business management and the easing of regulations on ancillary businesses. Furthermore, as "market players" holding big data, they need to become entities that fulfill their social responsibilities by utilizing their data and other infrastructure.