Hyundai Card to supply AI solutions to Japan’s Sumitomo Mitsui

Hyundai Card CEO and Vice Chairman Chung Tae-young (left) and Sumitomo Mitsui Card Co. President Yukihiko Onishi pose for a picture after signing a deal at the SMCC headquarters in Tokyo on Wednesday. (Hyundai Card)

Hyundai Card announced Thursday that it has secured a global deal to sell its self-developed artificial intelligence software.

The Korean card issuer signed an agreement to sell its AI software, known as Universe, to Japan's Sumitomo Mitsui Card Co., marking the first AI software export deal by a Korean financial company.

While the exact financial details were not disclosed, Hyundai Card stated the deal is valued at several tens of billions of won.

Universe is a hyperpersonalized platform based on data science, developed using Hyundai Card's proprietary AI technology. By defining and structuring data with "tags," the software enables targeted customer engagement by predicting behaviors and preferences and can be applied across various business sectors.

SMCC conducted six months of technical verification alongside Hyundai Card before deciding to implement the system. "Through a thorough validation process, we confirmed that Hyundai Card possesses some of the world's finest data analysis and design capabilities and decided on the implementation," an SMCC representative remarked.

SMCC anticipates that the AI software will enhance personalized experiences and improve merchant promotions, while also being utilized in various areas such as credit operations and fraud detection.

Following SMCC's lead, other subsidiaries of Japan's Sumitomo Mitsui Financial Group and financial companies worldwide are considering similar implementations, with requests for data science collaboration coming from the US, Europe, the Middle East and Asia, Hyundai Card noted.

The firm emphasized that this deal represents a pivotal moment in its transition from a traditional financial institution to a tech-driven company.

"This export is significant as it marks a shift from conventional financial services to a tech-based approach in overseas expansion," a Hyundai Card official said.

"We anticipate that our global expansion based on data science will accelerate."

By Choi Ji-won(jwc@heraldcorp.com)