Hyundai Capital Services, the auto financing arm of Hyundai Motor Group, has received the European Central Bank’s (ECB) approval in September to establish Hyundai Capital Bank Europe (HCBE) that will then provide direct auto financing services such as insurance brokerage, installment financing and lease to consumers.
HCBE will be headquartered in Frankfurt and commence operations in December, gradually offering wholesale and retail financing solutions linked to the sales of Hyundai and Kia brand cars, full service fleet management, acting as an intermediary for insurance and warranty products of insurance companies in Europe and offering deposit taking business for private customers and dealers.
HCBE received the license from ECB on September 23 after a deep review by the German financial authority.
Moreover, the ECB authorisation is expected to provide leeway for Hyundai Capital when seeking for business expansion within European Union states.
“Hyundai Capital Bank Europe will compete with global powerhouses in Frankfurt, the heart of European finance. This is very different from other Korean financial institutions that have been targeting Korean consumers or businesses overseas,” a Hyundai Capital official said.
“According to market data, about 75 percent of car buyers in Germany use auto financing programs. That ratio of import car brands including Hyundai and Kia cars is 73 percent and we expect to bring this figure to be above average. HCBE will support Hyundai Motor Group sales,” he added.
Hyundai Capital Services, Europe, Hyundai Motor Group, European Central Bank, Hyundai Capital Bank Europe, Insurance, Captive