Hyundai Commercial, the financial services subsidiary of South Korean car manufacturer Hyundai Motors, is working with IBM to expand its financial services business globally using blockchain technology.
During the IBM Think 2019, Hyundai Commercial, a corporate finance company that provides leasing and financial services for commercial vehicles and construction equipment, announced that it collaborating with IBM to apply blockchain and modernize its business model.
Hyundai Commercial is using the open source Hyperledger Fabric to create a new supply chain financing ecosystem, which will be designed to reduce lead times and costs in financial transactions among dealers, distributors, and manufacturers. The network intends to provide participants with a single view of all transactions happening in the network, while automating manual processes and enabling transaction data to be securely managed and shared more efficiently.
IBM, which with hundreds of clients across financial services, supply chain, government, retail, digital rights management and healthcare to implement blockchain applications, said that its blockchain platform delivers the end-to-end capabilities that clients need to quickly activate and successfully develop, operate, govern and secure their own business networks.
“Korea enjoys a digital-first financial services industry in which the rapid adoption of technologies such as artificial intelligence, analytics, blockchain and cloud are improving the customer experience and helping expand into new opportunities,” said Andrew Chang, General Manager, IBM Korea. “Working with IBM, Hyundai Card ∙ Hyundai Commercial has pioneered these new technologies and has been a strong innovator in the industry.”
In addition to blockchain, Hyundai will also be launching an AI-based chatbot for customer service, called Hyundai Card Buddy, using natural language processing and machine learning technology from IBM Watson to improve clients’ digital experience.
“It’s almost impossible to fully understand or memorize the benefits, limits, or conditions of a finance product,” said Ted Chung, CEO of Hyundai Card ∙ Hyundai Capital ∙Hyundai Commercial. “Customer services employees’ turnover rate and training cost is very high while the customers demand high quality service. So we introduced IBM Watson and it became a very powerful tool to help our employees and helped us to lower our employee turnover rate to less than 10%.”
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