Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Toss, Banksalad too immature to handle big data
Icons of Toss app, left, and Banksalad app / Korea Times file
By Park Jae-hyuk
Samsung Card considered to dominate data industry
By Park Jae-hyuk
Operators of Toss, Banksalad and other fintech platforms will experience difficulty in doing businesses regarding big data management, as the raw materials they have are not valuable enough to turn a profit, according to financial industry analysts, Tuesday.
Kiwoom Securities analyst Yoo Keun-tak told The Korea Times fintech platform operators will experience benefits smaller than expected from the recent relaxation of regulations on data management.
“Toss and Banksalad operators have access to data given by other financial firms only,” he said. “They are just platform providers, so they do not own confidential financial data as their assets.”
His remark was in stark contrast to a common belief that fintech firms will seize hegemony over big data analysis which is considered an important part of the Fourth Industrial Revolution.
Since the National Assembly passed revisions easing data protection regulations, fintech firms have been mentioned as the biggest beneficiaries, because those licensed for MyData business have been able to receive their customers' credit information from conventional financial firms, if their customers allow them to do so.
Some analysts have therefore expected fintech firms will vie to win the license which enables them to use the credit information of their customers.
“KakaoPay and NHN PAYCO are among fintech firms that are expected to apply for the license,” Shinhan Investment analyst Kim Soo-hyun said. “In addition, Banksalad and Toss are expected to apply for the license.”
The Kiwoom analyst, however, said it will take a significant amount of time for Toss and Banksalad to take the lead in the big data industry.
“Fintech firms will suffer setbacks as their competitors, such as conventional banks, will remain reluctant to share customer data they have,” the analyst said. “Data that has been accumulated by conventional firms for a long time will come under the limelight from now on.”
Among the conventional firms, Samsung Card was mentioned as the biggest beneficiary to the recent deregulatory measures.
Seo Young-soo, another Kiwoom analyst, wrote on his report the card issuing unit of Samsung Group will emerge as the nation's biggest data analytics company if it continues to form partnerships with retailers.
Over the past few years, major card firms here have released “private label credit cards,” jointly with retailers and air carriers, in order to secure detailed consumption data of their customers.
Samsung Card has affiliated itself with Shinsegae and Homeplus.
“The card firm can enhance its capability in big data management, because it can collect more data through partnerships with retailers and it owns payment data that allows it to understand consumption patterns of each individual,” Seo said.
He also said Samsung Card can grow into a business consulting firm from a mere financial services firm in the long run.