50% Growth in Auto Finance Assets with Introduction of BX AFS

www.kbcard.com
Total Assets 20B USD (2019)
Auto Finance Assets 2.2B USD (2019)

No. of Employees 1,616 (2019)
No. of Customers 19M (2019)
No. of Merchants 2.5M (2018)

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.

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.

Disclaimer: This article has been translated from its original language for the convenience of our readers. While every effort has been made to ensure accuracy, please note that translations may not fully capture the nuances and subtleties of the original text. Any discrepancies or inaccuracies are unintentional. Readers are encouraged to refer to the original source for complete and accurate information.

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