Hyundai Capital America (HCA) expedited the dealer adoption of e-contracting last year in the face of the global pandemic, which led to 61% of e-contracts used in the entire number of contracts signed at the end of 2020, more than double from a year ago.
HCA partnered with Dealertrack and RouteOne to help fuel e-contracting growth, a company spokeswoman told Auto Finance News. Penetration rates for the US-based captive rose 8% YoY, leading to increased profitability.
Digitization will continue to be a focus for the captive’s global brands going forward, to help automate “e-servicing” with the goal to minimize mobilization of human resources. E-servicing encompasses an automated retrieval system, which allows customers to access basic information about their account, such as payment due dates, and an interactive voice response system, a spokeswoman told AFN. In April 2019, the captive launched Kian, an AI-powered chatbot created in collaboration with CarLabs.ai.
The captive’s global umbrella, Hyundai Capital Services, has the “ultimate goal [of] enabling customers to resolve their queries and complete the entire financing transaction without having to talk to human agents, which the company defines as ‘one-stop self-closing,’” according to the earnings release.
HCA’s managed portfolio of loans and leases grew to $31.9 billion at the end of 2020, a 6% YoY increase, according to Big Wheels Auto Finance Data 2021.
Since entering the U.S. in 1989, Hyundai Capital has been expanding its global business, now operating in 12 different countries across the globe — including Brazil, Canada, China, South Korea, the United Kingdom, and the United States. Hyundai Capital operates Hyundai Finance, Kia Finance and Genesis Finance, according to a company release.
Hyundai Capital Canada, based in Canada, also experienced a 49% YoY increase in its sales volume, bolstered by a nationwide expansion of its retail subvention products in July 2020 that contributed to a “record-high penetration rate,” according to a company release.
Globally, Hyundai Capital’s combined financial assets rose 9% YoY to about $77.8 billion.
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