Hyundai Card's Strategic Expansion Through Data Science and AI
Hyundai Card Co. Ltd., a leading financial services company in South Korea, is leveraging data science and artificial intelligence (AI) to fuel its global expansion. The company has allocated over 30% of its annual operating income toward developing these advanced capabilities, signaling a strong commitment to innovation and technological advancement.
At the heart of this strategy is Hyundai Card’s proprietary AI platform called UNIVERSE. This platform has become a key export asset for the company, following its successful launch in Japan. UNIVERSE was recently adopted by Sumitomo Mitsui Card Co. Ltd., one of Japan’s largest credit card issuers, after a six-month proof-of-concept phase. The platform enables Hyundai Card to predict and analyze customer spending patterns through data-defining and structuring systems combined with AI technology.
UNIVERSE operates by tagging data into structured formats and using AI to forecast consumer behavior. Sumitomo Mitsui Card plans to utilize the platform across various areas, including credit operations, customer consultations, fraud detection, and merchant promotions. The successful testing of UNIVERSE in the Japanese market has paved the way for its expansion into other international markets, according to Hyundai Card.
The company is also preparing for a global investor push by seeking credit ratings from major rating agencies such as Fitch Ratings, Inc., S&P Global Inc., and Moody’s Investors Service. This step is crucial for enhancing its credibility and attracting international investment.
Over the past decade, Hyundai Card has invested more than $724 million (KRW1 trillion) in AI and data science. Today, 25% of its workforce—approximately 500 employees—are dedicated to digital, AI, and data science roles, compared to just 20 workers in 2015. This significant growth reflects the company’s increasing reliance on technology-driven solutions.
In addition to its domestic success, Hyundai Card has made notable strides in the mobile payments sector. It was the first to introduce Apple Pay in South Korea in 2023, securing a strong foothold in Europay, Mastercard, and Visa-supported mobile payments. More recently, the company launched mobile payments in Taiwan in partnership with Line Pay, further expanding its reach in the Asia-Pacific region.
These strategic partnerships and alliances with major brands underpin Hyundai Card’s dominance in South Korea’s private label credit card (PLCC) market, where it holds a 78% share. PLCCs offer co-branded services and benefits through collaborations with well-known companies such as Costco, Korean Air, Emart, and Olive Young. By fostering a data alliance among its PLCC partners, Hyundai Card enables data analysis, strategic insight utilization, and collaborative marketing efforts.
With more than 12 million cardholders, Hyundai Card continues to grow its business. In 2024, the company reported annual credit sales of $120 billion, while overseas payment transactions surged by 32.6% year-on-year to $2.4 billion. These figures highlight the company’s strong performance and its ability to thrive in an increasingly competitive global market.
As Hyundai Card continues to invest in AI and data science, it is positioning itself as a leader in the financial technology space. With its innovative approach and strategic partnerships, the company is well-equipped to navigate the challenges and opportunities of the future.