Samsung Card is rapidly expanding its membership base thanks to its strategy of increasing affinity cards. The company is narrowing the gap with industry leader Shinhan Card in both membership numbers and personal credit sales.
According to the financial sector on July 21, Samsung Card's membership reached 13.58 million in the first half of this year, an increase of 450,000 (4.5%) from 13.13 million in the same period last year. In comparison, Shinhan Card's membership grew by 180,000 to 14.18 million during the same timeframe, reducing the gap between the two companies to 600,000.
The increase in Samsung Card's membership is attributed to its successful strategy of expanding affinity cards. Since the end of last year, Samsung Card has launched partnerships with brands such as Starbucks, Woori Bank, Musinsa, KTX, Samsung Lions, Hanwha Eagles, and Lotte Homeshopping, enhancing its lineup. Affinity cards are considered a key marketing tool for card companies as they effectively attract loyal customers of specific brands.
With the launch of new products, Samsung Card has also increased its marketing investment. In the fourth quarter of last year, the company's advertising expenses surged to 43.6 billion won, a 161.7% increase from 16.6 billion won in the same period the previous year. This amount exceeded the combined advertising expenses of the other seven major card companies during that time. In the first quarter of this year, advertising expenses also tripled to 23.2 billion won compared to 7.5 billion won in the same period last year, accelerating its efforts to acquire new members.
Samsung Card is also closely pursuing Shinhan Card in personal credit sales. The cumulative gap in personal credit sales between the two companies decreased significantly from 2.295 trillion won in the first half of last year to 720.3 billion won in the first half of this year. In terms of net profit, Samsung Card reported 156.2 billion won in the first quarter of this year, surpassing Shinhan Card's 116.6 billion won and maintaining its lead in the industry.
As the expansion of membership becomes a core competitive advantage for card companies, the competition to secure customers through affinity cards is intensifying. With an increasing number of members, revenue sources such as credit sales, card loans, and installment financing can also expand. In response to Samsung Card's pursuit, Shinhan Card has launched several affinity cards this year in partnership with brands like E-Mart, Mercedes-Benz, and Toss to broaden its customer reach.
A card industry official stated, "Affinity cards have high issuance demand among customers who frequently use specific brands, making them effective products for acquiring new members. They are actively utilized as a strategy to expand the membership base by attracting customers who use affiliated brands."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.