Hyundai Motor Group to launch Internet bank in Germany next year

Hyundai Motor Group to launch Internet bank in Germany next year. July. 29, 2015 07:15. fighter@donga.com.

Hyundai Motor Group will open an Internet-based bank in Germany in the first half of next year. An Internet-based bank receives deposits and makes loans through the Internet, a call center, and automated teller machines without operating branches. Hyundai Motor Group is the first Korean manufacturing company to set up a bank in Europe.

Hyundai Motor Group said on Tuesday, "We submitted application for establishment of "Hyundai Capital Bank Europe," an Internet-based bank, to the German financial regulator "BaFin" in early this month." A source at the group said, “We are fully ready not only in terms of capital but also human resources and IT systems,” adding, “We expect to receive approval from the Germany financial regulator within this year or by early next year.” The bank will start business in the first half of next year.

Hyundai Capital Bank Europe will have the owner’s capital of 44.2 million euros (48.91 million US dollars). The capital includes 35.36 million euros (39.13 million dollars, or 80 percent) injected by Hyundai Motor, and 8.84 million euros (9.783 million dollars, or 20 percent) by Kia Motors, and Hyundai Motor will participate in capital increase later on. The value of capital increase has yet to be determined.

Hyundai Capital Bank Europe will sell auto financing products, including loans for installment-based purchases, auto lease and auto insurance products for purchases of new and used cars in European countries. The company plans to mobilize funds by receiving deposits from companies.