Hyundai Capital Registers as 'Electronic Financial Business'... First in the Capital Industry (Comprehensive)

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 recipient on their behalf. As of the end of last month, 15 companies including Hyundai Capital, Kakao Pay, Naver Financial, and NHN Payco are registered.

Earlier, 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 mediation services, and electronic billing and payment services to its business objectives. This achievement came one year after the change in business objectives.

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 on-site car washing, into a single bill. For example, if a customer used not only their own vehicle but also an electric wheel or rental car and availed on-site car washing, Hyundai Capital will settle and bill these costs at once. Hyundai Capital plans to develop and offer package products combining various mobility services in the future.

Plans to Introduce Integrated Billing for Various Mobility Services

Hyundai Capital’s effort to expand beyond installment financing and leasing into electronic financial services is analyzed as a measure to strengthen competitiveness in the fiercely competitive auto finance market. The company aims to secure customers by expanding service coverage beyond automobiles to various mobility means and providing customized services.

Hyundai Capital is also proactive about MyData, which will be implemented from December. MyData is an asset and credit management service that gathers scattered personal credit information in one place and recommends customized financial products based on it. The capital industry is expected to enable personalized car recommendations and installment product suggestions using non-financial data. Hyundai Capital, which received full MyData approval in January, plans to introduce customized services based on data analysis that allow customers to conveniently use financial and vehicle services. It already provides services such as checking vehicle market prices and credit information.

The auto finance market is seeing intensified competition with credit card companies aggressively entering the business diversification space, challenging the traditional dominance of capital companies. The market share of credit card companies in new car financing has nearly doubled over 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 stood at 14.3945 trillion KRW, down 4.0% (597.1 billion KRW) 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. Integrating billing for various mobility services is expected to greatly enhance customer convenience."

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