Hyundai Capital, Industry's First to Register as 'Electronic Financial Business'... "Strengthening Auto Financing Competitiveness"

Achievements One Year After Business Purpose Change
Opportunity to Strengthen Competitiveness in the Car Finance Market
Plans for Integrated Billing and Package Products

[Asia Economy Reporter Ki Ha-young] Hyundai Capital has become the first in the capital industry to complete registration for electronic financial services. This achievement comes one year after adding electronic billing and payment services to its business objectives last year. It is interpreted as a move to strengthen market competitiveness by expanding convenience services that encompass mobility beyond automobiles in the increasingly competitive auto finance market.

According to the financial sector on the 22nd, Hyundai Capital received electronic financial service approval from financial authorities on the 13th of last month to conduct electronic billing and payment services. Electronic billing and payment services involve the payer delivering statements or bills to the payee on their behalf. As of the end of last month, 15 companies including Hyundai Capital, Kakao Pay, Naver Financial, and NHN Payco are registered.

Previously, in September last year, Hyundai Capital held an extraordinary general meeting of shareholders and added personal credit information management (MyData), financial product advisory services, loan brokerage and arrangement services, and electronic billing and payment services to its business objectives. This marks the achievement one year after the business objective change.

With this electronic financial service registration, Hyundai Capital plans to introduce an integrated billing service that consolidates costs for various mobility services used by auto finance customers, such as car sharing and mobile car washing, into a single bill. For example, if a customer used not only their own vehicle but also electric wheels, rental cars, and mobile car washing services, Hyundai Capital will settle and bill these costs all at once. Hyundai Capital plans to develop and offer package products combining various mobility services in the future.

The reason Hyundai Capital is expanding beyond existing installment finance and leasing into electronic financial services is analyzed as a measure to strengthen competitiveness in the intensifying auto finance market. The company aims to secure customers by expanding service scope beyond automobiles to various mobility means and providing customized services.

Hyundai Capital is also proactive about MyData, which will be implemented from December. Having received full MyData approval in January, Hyundai Capital plans to introduce customized services that allow customers to conveniently use finance and vehicles based on data analysis.

The auto finance market is becoming more competitive as credit card companies aggressively enter, intensifying competition with the traditional capital companies. The market share of credit card companies in new car financing has nearly doubled in the past four years. Although capital companies still hold an overwhelming 70% market share, it has stagnated. As of the first half of this year, Hyundai Capital's auto installment assets amounted to 14.3945 trillion KRW, a 4.0% (597.1 billion KRW) decrease from the end of last year. Meanwhile, credit card companies are aiming to exceed 10 trillion KRW in auto installment assets this year.

A Hyundai Capital official said, "We received approval for electronic billing and payment services last month and are concretizing related business plans," adding, "We expect customer convenience to greatly improve by consolidating costs for various mobility services into a single bill."

This content was produced with the assistance of AI translation services.