Samsung Card Co., credit card issuer under Samsung Group, successfully expanded its subscriber base in about six months after it joined hands with Standard Chartered Bank Korea (SC Bank Korea), a subsidiary of British banking service giant Standard Chartered PLC.

According to Samsung Card on Wednesday, the number of its credit card subscribers rose 1.4 percent to 9,032,000 in the April-June period this year from 8,903,000 in the first quarter this year. The on-quarter growth rate is 0.9 percentage point higher than that of the first quarter. The credit card named SC Bank Korea-Samsung Card that the two firms created together succeeded in recruiting new subscribers, helping it expand its user base, the company said.

Credit card issuers by nature have limited sales networks compared to banks, but Samsung Card could expand its sales networks through its tie-up with SC Bank Korea. First-time Samsung Card credit card users accounted for 88 percent of those signed up for the SC Bank Korea-Samsung Card at Standard Chartered Bank’s branches, according to the company.

The two companies entered a comprehensive partnership agreement in February this year and together launched a credit card in April, a debit card in June, and a corporate credit card in July. In particular, the corporate credit card that they jointly issued was so successful that the number of subscribers for the card more than doubled that of Samsung Card’s other corporate credit cards.

SC Bank Korea-Samsung Card users can use member loyalty points of the card like cash at banks, which was the most welcomed by its users, the company said. For example, when a Samsung Card user converts one’s loyalty points at Samsung Card to SC Bank Korea’s 360 Rewards points, the user may use the points to make investment in financial products offered by the bank or pay interests on bank loans. With the bank points converted into the Samsung Card points, the card user would be able to pay for purchases at Samsung Card’s online shopping mall or pay for annual credit card membership fee.

Through the partnership, SC Bank Korea also installed its automated teller machines (ATMs) and a pop-up store at Samsung Card’s headquarters.

Market observers forecast that such strategic linkup among financial companies and other sectors including information technology (IT) firms and retailers would further rise in a move to ward off stiff competition from new financial services such as internet-only banks and fintech services.

SC Bank Korea recently joined hands with Shinsegae Group and launched a small-sized banking outlet called the Bank Shop at Shinsegae’s department stores and hypermarkets. Hana Financial Group of which business ranges from banking to credit card service also entered partnership agreement with the nation’s top wireless carrier SK Telecom Co. to develop a fintech service platform together.

By Chung Ji-sung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]