Credit card companies are eyeing the massive, intricate offline transaction data they carry as a potential means for a breakthrough. (image: Korea Bizwire)
SEOUL, March 17 (Korea Bizwire) — Credit card companies are looking for a financial breakthrough in the data industry as they continue to struggle from Buy Now, Pay Later (BNPL) services.
The onslaught of the fintech companies is pushing credit card companies away from their profit centers, after they lost monopoly over the BNPL market following the decision by the Financial Services Commission to allow fintech companies to offer BNPL services.
In response, credit card companies are eyeing the massive, intricate offline transaction data they carry as a potential means for a breakthrough.
This data provides information on the gender of each user, area of residence as well as the time, place, channel of transaction and the items purchased.
Credit card companies are connected to most online transactions as well, allowing them to analyse both offline and online consumption patterns.
This data can be used to send targeted advertisements to consumers by bringing up products online that they may potentially buy in the near future.
The image, provided by Yonhap News TV, shows a payment with a credit card.
Last February, Samsung Card Co. introduced Link Partner, a business analysis platform that uses AI and machine learning technology to analyse customer transaction data and offers the results to a business owner.
The business owner can gain easy access to customer data, including gender, income, occupation, and lifestyle. This new platform can save marketing costs for businesses, while credit card companies can attract more customers.
KB Kookmin Card Co. is also offering a similar service known as the Smart Offering System, which analyses data from more than 8 million card transactions every day to come up with various marketing strategies tailored to the time and need of customers.
For instance, during a holiday season, Kookmin Card might send out a discount coupon for accommodation on Jeju Island to a customer who had gone on a trip to Jeju the previous summer.
Hyundai Card Co., along with Israeli fintech company Personetics Technologies Ltd., has been working since last June to analyse patterns of credit card usage using artificial intelligence (AI) technology and offer 80 kinds of individual consumption solutions.
H. M. Kang (hmkang@koreabizwire.com)
