As South Korea’s leading credit card issuer, Hyundai Card continues to push the boundaries of innovation in the financial sector, blending cutting-edge artificial intelligence (AI) with its robust data science capabilities.
Hyundai Card makes huge investment in AI
Established in 2001 as a financial arm of Hyundai Motor Group, Hyundai Card has evolved into a trailblazer, renowned for its premium offerings and strategic partnerships with global brands like Starbucks, Costco and Korean Air.
Recent developments underscore its efforts to solidify its position as a global leader in fintech.
Revolutionising Financial Services with AI
Hyundai Card has invested over KRW 1 trillion ($700 million) in the past decade to enhance its proprietary AI platform, UNIVERSE.
This hyper-personalised system leverages a ‘Tag’ methodology to analyse and predict user behaviour, preferences and conditions.
The versatility of UNIVERSE allows it to be applied across industries, offering a transformative approach to customer engagement and operational efficiency.
UNIVERSE’s success has extended beyond South Korea.
In October 2024, Hyundai Card signed a landmark agreement with Sumitomo Mitsui Card Company (SMCC), marking the first export of a Korean AI financial platform.
This collaboration signals Hyundai Card’s ambition to expand its influence in markets across Asia-Pacific, the Middle East, Europe and North America.
Hyundai Motor Group implementing largest domestic investment
In the face of current economic conditions, South Korean companies are bolstering their competitiveness through increased investments in new technologies and strategic innovation.
Hyundai Motor Group is implementing the largest domestic investment in its history this year to strengthen future competitiveness.
The investment, a massive KRW 24.3 trillion ($17 billion), marks a 19% increase from last year’s investment of KRW 20.4 trillion, setting a new annual record.
The investment breakdown includes KRW 11.5 trillion for R&D, KRW 12 trillion for capital expenditure, and KRW 800 billion for strategic investment.
R&D investments will be allocated towards improving product competitiveness, advancing electrification, developing software-defined vehicles (SDVs) and creating hydrogen products and core technologies to secure future capabilities.
Embedded AI at the Core of Strategic Growth
Hyundai Card’s UNIVERSE platform exemplifies the convergence of AI and financial services, creating opportunities for hyper-personalised customer experiences and streamlined operations.
By integrating this platform into its offerings, Hyundai Card is not only enhancing its own services but also providing a blueprint for the global fintech industry.
A spokesperson for Hyundai Card highlighted the challenges of scaling AI solutions for business applications, emphasising the need for long-term investments and proprietary data science capabilities.
These efforts have positioned Hyundai Card as a leader in AI-driven financial innovation, earning it recognition from major credit rating agencies like Fitch, S&P Global Ratings and Moody’s.
Strengthening Market Presence and Consumer Trust
Hyundai Card’s innovative efforts extend beyond technology.
It was the first credit card issuer to launch Apple Pay in South Korea in 2023 and remains the exclusive issuer of American Express Centurion cards in the country.
These achievements reflect its commitment to enhancing user convenience and loyalty through premium services.
Additionally, Hyundai Card’s focus on collaboration is evident in its Private Label Credit Card (PLCC) partnerships with industry leaders like Hyundai Motor.
By forging these alliances, Hyundai Card strengthens its brand identity and expands its market reach, positioning itself as a critical player in the evolving landscape of embedded finance.
A Vision for Global Expansion
With an established reputation for innovation and reliability, Hyundai Card is charting a course toward global leadership in fintech.
By investing heavily in AI and maintaining a commitment to delivering value to customers and partners, the company is setting new standards in the financial services industry.
Hyundai Card’s journey reflects a broader trend in fintech, where technology and customer-centric solutions redefine traditional financial models.
As the global addressable market for embedded finance and AI-driven solutions expands, Hyundai Card’s strategic vision positions it as a key player in shaping the future of payments and financial technology.
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