KB Kookmin Card has consistently promoted business diversification outside of the traditional
credit card business with the aim of expanding its revenue base, increasing its card transaction
volume, and improving group synergies. In particular, in order to quickly respond to market
changes whilst expanding/driving the installment/lease finance business, Bankware’s BX AFS
system, which is capable of supporting quick and flexible development of, and can operate a
diverse array of financial products, was adopted.
After the introduction of the BX AFS system, KB Kookmin Card’s auto finance assets in 2019 increased by more than 50% (12% of total assets), to 1.5B USD, compared to the previous year.
After the introduction of the BX AFS system, KB Kookmin Card’s auto finance assets in 2019 increased by more than 50% (12% of total assets), to 1.5B USD, compared to the previous year.
Core Study
Credit Card, Growth Drivers for Credit Finance Corporations, Durable Goods Finance
Due to the success of the auto finance business, in 2019, KB Kookmin Card earned $2.4 billion
in revenue, closely following Shinhan Card, which was leading the market. Moreover, in recent
years, KB Finance Group’s synergies have improved, its revenue base diversified and efforts to
improve profitability have succeeded.
In order to diversify its revenue base, KB Kookmin Card not only expanded into the installment finance market but also extended as far as the lease finance market, showing solid growth in new business ventures. Although the core product in the lease finance market is automobile leasing, recently efforts are being made in product diversification to discover new demand. In particular, KB Kookmin Card was the first in the credit card industry to offer a lease product for Apple users for new releases of iPhone, iPad and MacBook Air.
Continuing this trend, KB Kookmin Card is extending its lease finance products to durable goods such as premium home appliances, and also is planning to diversify its lease business through other endeavors such as expanding the number of partners that can provide lease finance services. This type of financing of durable goods is expected to become a new source of revenue for the credit card and credit finance industries.
Bankware Global’s Asset Finance Service covers automobile, medical equipment, heavy machinery and durable goods installment and lease finance services end-to-end for credit card, credit finance, and auto finance businesses, individual or corporate, foreign and domestic. Considering this, we expect AFS to continue its strong growth in the industry.
In order to diversify its revenue base, KB Kookmin Card not only expanded into the installment finance market but also extended as far as the lease finance market, showing solid growth in new business ventures. Although the core product in the lease finance market is automobile leasing, recently efforts are being made in product diversification to discover new demand. In particular, KB Kookmin Card was the first in the credit card industry to offer a lease product for Apple users for new releases of iPhone, iPad and MacBook Air.
Continuing this trend, KB Kookmin Card is extending its lease finance products to durable goods such as premium home appliances, and also is planning to diversify its lease business through other endeavors such as expanding the number of partners that can provide lease finance services. This type of financing of durable goods is expected to become a new source of revenue for the credit card and credit finance industries.
Bankware Global’s Asset Finance Service covers automobile, medical equipment, heavy machinery and durable goods installment and lease finance services end-to-end for credit card, credit finance, and auto finance businesses, individual or corporate, foreign and domestic. Considering this, we expect AFS to continue its strong growth in the industry.