Financial News | Card Companies, “Win Customers’ Hearts with Character Cards”
Financial News reported that card companies facing worsening profitability from fee cuts are attracting customers through character-and-design differentiation. Alongside Shinhan Card's 'Minions' check card and KB Kookmin Card's Sticky Monster card, it reported that Woori Card's 'Card-ui-Jeongseok' series, which applies Korean painter Kim Hyun Jung's work to its card plate design, surpassed 3 million cards issued and launched the new product 'WOWRI.'
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Card companies struggling with difficulties from fee cuts and other pressures are rolling out a variety of character cards in a scramble to win customers. With a revenue decline now inevitable due to the overhaul of the card fee structure, and financial authorities set to limit add-on services on new products, companies are turning to design competition that stirs collectors' desire rather than dramatic benefits.
According to industry sources on the 15th, Shinhan Card partnered with NBC Universal to release its 'Deep Dream Check Card' (photo), featuring the 'Minions' characters on the card plate design. Online applications opened on the 28th of last month, and more than 27,000 cards had been issued as of the 14th. Given that a check card is typically classified as a 'blockbuster product' if it surpasses 300,000 cards issued annually, its early popularity is extremely hot. Following the check card, Shinhan Card is strengthening its product lineup by also releasing a credit card featuring the Minions characters.
The launch of new design-focused products continues elsewhere as well.
Woori Card recently released its 'WOWRI' product to celebrate its 'Card-ui-Jeongseok' series surpassing 3 million cards issued. Card-ui-Jeongseok has enjoyed great popularity by adding 'Korean beauty' to the card plate design through the work of Korean painter Kim Hyun Jung. Notably, Woori Card also applied Kim's design to the new WOWRI product, using basic geometric elements and the five traditional Korean colors (obangsaek) to convey a variety of hues. KB Kookmin Card previously unveiled its 'KB Kookmin Cheongchundaero Talk Talk Card,' whose design depicts Sticky Monster characters such as Redmon and Bigmon enjoying various benefits like food and beverage discounts.
Products with strengthened characters and design are expected to continue increasing for the time being.
Card companies immediately face an expected annual revenue decline of 800 billion won starting this year due to reduced merchant fees. In addition, while financial authorities are not allowing cuts to add-on services on existing products, they have decided to restrict excessive add-on services on new products.
Reporter Choi Jong-geun