Online fund sales based on around 2 trillion won worth of points are likely to be a great benefit to card users as a means to manage their wealth, as they will boost the use of the cards in other areas than going to movies and restaurants.
A holder of Shinhan Card said it would be a great help if those points can be used like cash for investment. He has accumulated around 30 points from the use of his Shinhan card.
If credit card firms cut their fees substantially, fund sales by banks and securities firms will heat up, with the card holders turning to invest in the funds.
Shinhan Card has been working on developing an online platform that can sell funds, settle payments, shopping and pay off investments of financial products. The credit card firm means to fight off the offensives unleashed by various ICT firms.
Most recently, the card firm changed the name of the mobile simple settlement service to “Shinhan Fan Pay” to rebuild its mobile network as part of its ongoing move to reform its operational structure. The company signed cooperative agreements with a number of top-class firms in each of their industries including GS Retail, Homeplus, SPC and Dongbu Non-Life Insurance Co.
The company intends to put its online products on the market to be handled in the mobile set up as part of its strategy to have all new products handled in the “Finance inside the Palm.”
The card company decided to benchmark Alibaba, a top online commercial firm in China, which introduced “Wia Bao,” a money market fund in June 2013, which returns to the consumer the profits earned from their funds left over after paying for their online shopping in their accounts (Ali Pay).
On May 11, Shinhan Card held a signing ceremony for Code9-big data, consulting with Golomt Bank of Mongolia in Seoul.
The signing ceremony was attended by Shinhan Card president Wi Sung-ho, Golomt Bank president Ganzorig Ulziibayar, and others. Golomt Bank, which is one of the largest banks in Mongolia, currently has total assets of 2.2 trillion won, along with 113 branches.
According to their agreement, Shinhan Card is to provide big data consulting with regard to the Mongolian bank’s credit card business. The South Korean credit card company is planning to concentrate on customer segmentation methodology such as the Code9, data mining and analysis algorithms and the like. The Mongolian credit card market is still in its early stage.
The cooperation between the two companies marks the first case of financial big data consulting service export in the South Korean financial sector. Shinhan Card is expecting that it will become a chance for it to find out if its big data analysis models work well in global emerging markets.
New technology to combine several cards into one has been developed.
Shinhan Card announced on Nov. 9, 2015, that it successfully demonstrated its Once Card service using KONA I's NFC-based smart card solution at the CARTES SECURE CONNEXIONS held in Paris on Nov. 4 to 6. The Once Card service enables people with a smartphone equipped with NFC and a combi card to manage and use several cards at once. People can use the service by entering credit card information into a combi card and choosing which card to use via their NFC-enabled smartphone.
The requirement for issuing or replacing cards is just to enter credit card information into a combi card. Hence, the service can reduce the time and cost needed for issuing and delivering new cards. In addition, credit card numbers, expiration dates, and CVC numbers do not show on the card.
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