Hyundai Card Co. Ltd., a pioneer in the South Korean fintech space, is steering its global ambitions with a sharp focus on data science, dedicating over 30% of its annual operating income to enhance its capabilities in this arena. The company is not just crunching numbers; it’s transforming them into actionable insights that predict and analyze customer spending patterns through advanced data structuring and artificial intelligence (AI).
At the heart of Hyundai Card’s international strategy is its innovative AI platform, UNIVERSE, which the company considers pivotal for its future growth. This powerful tool recently made waves in Japan by partnering with Sumitomo Mitsui Card Co. Ltd., a leading credit card issuer, following a six-month proof-of-concept trial that proved UNIVERSE’s mettle in a demanding market.
UNIVERSE excels at tagging data into structured formats and employing AI to forecast consumer behavior — a function Sumitomo Mitsui Card plans to utilize across various operations, from credit assessments to fraud detection and merchant promotions. “Navigating the rigorous Japanese market has not only validated UNIVERSE but also paved the way for its expansion into additional territories,” commented Hyundai Card, emphasizing the platform’s potential to significantly bolster its global enterprise.
In a bid to fuel its global expansion, Hyundai Card is also pursuing credit ratings from major agencies including Fitch Ratings, S&P Global, and Moody’s Investors Service. Over the past decade, the company has poured more than $724 million (KRW1 trillion) into AI and data science initiatives, leading to a substantial increase in its workforce dedicated to these areas — from just 20 employees in 2015 to around 500 today, constituting a notable 25% of the overall staff.
In 2023, Hyundai Card became the first in South Korea to launch Apple Pay, reaffirming its strong position in the mobile payments landscape alongside established giants like Europay, Mastercard, and Visa. It has also recently expanded its mobile payment services to Taiwan through a partnership with Line Pay.
The company holds a commanding 78% share in South Korea’s private label credit card (PLCC) market, thanks to strategic alliances that enable it to offer co-branded services with major retailers such as Costco, Korean Air, Emart, and Olive Young. These partnerships have not just enhanced customer benefits but have also cemented Hyundai Card’s position as a leader in data utilization and collaborative marketing.
With over 12 million cardholders, Hyundai Card is making significant strides in international markets. Its annual credit sales are projected to hit $120 billion in 2024, and overseas payment transactions have witnessed an impressive 32.6% year-on-year increase, reaching $2.4 billion.
What is Hyundai Card’s main strategy for global expansion?
Hyundai Card is focusing on data science, allocating over 30% of its annual operating income to enhance its capabilities, particularly through its AI platform, UNIVERSE.
How has Hyundai Card’s UNIVERSE platform been received in Japan?
The UNIVERSE platform has been successfully adopted by Sumitomo Mitsui Card, one of Japan’s largest credit card companies, after passing a rigorous six-month proof-of-concept trial.
What is Hyundai Card’s market position in South Korea’s private label credit card sector?
Hyundai Card commands an impressive 78% share of the private label credit card market in South Korea, supported by strategic partnerships with major retailers.
