George Steinsky, President & CEO, Hyundai Capital Canada
One of Canada’s new kids on the auto lending block says its raison d’etre is to be captivated by dealer and OEM needs
Focusing on helping dealers “get more tail lights over the curb” is how Hyundai Capital Canada plans to create steady upward growth, giving the nascent captive lender the opportunity to satisfy dealer and OEM expectations while competing with well-established finance providers, says George Steinsky, President and CEO.
“I joke with people that we started with four wheels and a steering wheel,” says Steinsky of the financial services subsidiary of the Hyundai Motor Group and Kia Motors Group.
Hyundai Capital is now moving at a “very good pace,” catching up with its competitors, says Steinsky. A main area it is currently concentrating on is the leasing process.
The company is working at simplifying leasing arrangements for the dealer and the lessee to expedite the leasing procedure and ultimately get cars off the lot.
“We have no reason for being here if we’re not helping sell cars, right?” adds Steinsky.
For Steinsky, who spent more than 20 years with RBC in various lending and strategic sales management roles before becoming National Head of Sales at RBC Automotive Finance, being in a captive lending position introduces a major change in mentality.
“The OEM business was a great way for the bank to grow the balance sheet, but there wasn’t much there for the OEM,” says Steinsky.
When Hyundai Capital launched in 2014, Steinsky took on the role of Vice President, Marketing and Sales until less than half a year ago when he took over leadership of the company.
Hyundai salespeople are an integral part of the Kia and Hyundai brands, engaged in the day to day happenings at the OEM, and Steinsky is himself involved in weekly senior management meetings.
“It’s a much more integrated structure than the vendor/supplier type of relationship that banks have,” he explains.
“Everything we do from a process perspective, or from a technology perspective, has to be focused on how we improve things for the dealer and how we improve things for the OEM to get more cars off the lot.”
Another area where Hyundai Capital is working on being more deeply integrated than its non-captive competitors concerns its CRM capabilities.
Steinsky says the company is leveraging the OEM capability which will solidify that element of the business. “We’re working closely with one of our brands in terms of almost a complete integration with their CRM platform.”
Hyundai Capital’s next steps involve the “exciting technology pieces” centred around the retention and renewal elements of the business, says Steinsky.
Additionally, the company is “aggressively growing other aspects of the portfolio,” including its connection to the commercial inventory finance business while moving Hyundai Capital into various retail spaces.
The macro plan is to generate a more diverse balance sheet, so that it can provide offerings that are currently unsupportable, such as a lease payment waiver at origination or an interest deferral, explains Steinsky.
“I think, though, we’re getting very close to where we will be fully capable.”
Hyundai Capital has its offices in downtown Toronto and has also embedded two employees at the Hyundai Markham and Kia Mississauga headquarter sites. “Again, another area where we’re going to be a little more integrated than the banks are currently,” adds Steinsky.
“We have a fantastic team here,” he says, pointing out that almost every member of the senior management team has been working together since day one.
It’s been an easy transition, says Steinsky. The one challenge has been to cultivate a much deeper understanding of the factors that were previously on the radar of everyone at Hyundai Capital, but for which he “had a three-inch knowledge previously; now I need a three-foot knowledge,” says Steinsky.
Dealers, Steinsky hopes, will eventually have the option to turn to Hyundai Capital for all their financing needs. “Over time, we’ll be able to meet all their needs down the road, if they desire.”
