Hana Bank announced on Monday that it would be partnering with Korea’s two automobile industry giants, Hyundai and Kia, for connected car financial services. The project will also involve Finda, a fintech startup that will be working alongside the three mega-companies.
Since the project is in its initial phase, the company has not yet unveiled the details of the project. However, Hana will be coming up with fintech products that are targeted at connected car users. The partnership will also be working on big data that will bring about new projects for the trio. Hana Bank wishes to take the projects ahead to explore and develop new fintech products in the finance market.
Hana Bank official Kim So-Jung spoke to the media, where he addressed their new ties with Korean Automakers. “The latest partnership enabled us to understand the future of the auto industry beyond its fundamental purpose of providing mobility,” Kim stated.
Connected cars are vehicles that allow users to connect their devices to the wireless local area network inside or outside vehicles. The internet access makes the car ‘connected.’ Genesis Connected Services, Kia Connected Services, and Blue Link are some of the systems through which Hyundai and Kia offer their connected vehicle services.
Finda, the fintech startup, manages a web portal that provides Hana’s financial products and services. Right from credit cards, personal and mortgage loads to even insurance services are included on the platform.
“We will continue to make efforts to improve customer convenience by catering to their needs of providing a lifestyle platform which integrates banking and auto services with finance technology,” Kim adds as he talks about the fintech products that the new joint venture will introduce to the market.
At present, Hana Bank is one of the top financial entities in the country, with an increasing net profit of $1.05 billion reported in the first six months of 2021. On the other hand, Hyundai and Kia have managed to control a large market space in the European automobile industry in the past few months.
The sales by Hyundai and Kia together have exceeded the contribution of other global automakers in Europe. It is despite the usual low of production in the automobile industry. “Vehicle production dropped due to a prolonged shortage of semiconductors,” European Automobile Manufacturers Association stated while speaking to the media.
With sales figures of the two South Korean automakers reaching skyrocket growth globally, the new joint venture with Hana Bank holds high expectations from the trio. The demand for connected cars is on a constant rise in the Korean market. If Hana manages to tap into the opportunities in the market, the trio can leverage the benefits of early market entry.
