Card companies' big data help virus-hit small firms

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By Anna J. Park

Credit card companies have accumulated an enormous amount of big data based on their card holders' payment information.

Such information has not only helped the health authorities track exact movements of confirmed COVID-19 patients in the early stages of the pandemic in the country, it has also helped many mom-and-pop stores across the country, which have been directly hit by the global pandemic with the plunging number of customers due to social distancing.

Major card companies, including BC, KB Kookmin and Shinhan, have come up with plans to buttress the nation's small businesses by providing their own marketing tools and sales strategies based on big data analysis.

BC Card has joined hands with the Ministry of Science and ICT and the Korea Data Agency in supporting a data voucher project, through which the government distributes data vouchers to small businesses and startup companies.

Companies with the voucher can receive various categories of big data useful for their businesses. The data includes a vast spectrum of information, from spending patterns according to age or gender, businesses' revenues from card payments according to region or sector, and a fusion of social and public information.

BC Card has earned government recognition for its big data analysis know-how. The credit card company is Korea's only company with an expertise in card processing and it is the largest operator of card payments in the nation.

It operates on average about 400 million card payment transactions per month of 38 million card holders from its 33 card company clients. It also has 3 million card merchants across the nation, which is the largest number of merchants among card companies.

“BC Card's big data that's been accumulated during the past 37 years has earned trust for its technological prowess and excellent quality,” said Kim Jin-cheol, executive vice president of the company's marketing group.

“The firm will continue to provide quality big data through the government-led data voucher projects, and to actively pursue win-win relationships with small and venture businesses, mom-and-pop stores and startup companies.”

Shinhan Card is currently providing marketing analysis support for small business owners until the end of June. Dubbed “My Shop Partner,” the free service furnishes small businesses with big data analysis, based on the company's 22 million card holders. The service helps the shops provide special offers to selected customers who are able to visit, and the card company will pay for the special discounts.

The company also provides weekly big data analysis reports to 123 municipal governments for free. The reports contain each municipality's spending patterns in sectors and the changes, so that the local governments can use the information to support businesses suffering from the pandemic crisis.

KB Kookmin Card has also been offering similar big data analysis reports to 17 municipal governments, free of charge, since March. The reports contain various information, such as card payment analyses, each sector's card revenues and card usage patterns according to age and gender.

“The firm provides the big data analysis reports, aiming to help local governments draw up measures to effectively support small business owners in overcoming the COVID-19 crisis,” an official from KB Kookmin Card said.

The company has also launched a big data-based marketing supporting service for small and medium-sized business merchants, through which merchants can reach out to potential customers by offering special discounts, while customers can enjoy various discount information from the areas where they are particularly interested in making purchases.