Ascent performance group
Motor finance comes under the debate focus
Last month, CCRMagazine and Ascent Performance Group brought together a group of senior professionals to discuss the major issues in the motor-finance sector, they were: Peter Cottle, head of automotive sector, GrowCap (PC); Steven Kershaw, senior credit manager, The Right Fuelcard Company (SK); Glenn Matthews, head of operations north, Close Brothers Motor Finance (GM); Simon Bayley, director, Moneybarn (SB); Mark Higgins, chairman, Ascent Performance Group (MH); Adrian Dally, head of motor finance, Finance & Leasing Association; Andy Dodd, managing director, Hitachi Capital (ADO); Anne Atherton, director of special servicing, Blue Motor Finance; Sarah Watts, director, Quilam Capital; Hayley Rutherford, business development manager, Ascent Performance Group; and Oliver Smith, collections team manager, Loans 2 Go
What are the most important trends in the car finance and wider finance sectors today? How is the industry coming to terms with its challenges? PC: The car-finance market has seen major changes in recent years and new players have emerged to challenge the norm. Funders have already reacted, but I see the key issues for today being: l Having the right people, systems, and processes to emerge as a winner in tomorrow’s marketplace. Being nimble to take advantage of new opportunities. l Reacting to the disruptors, by having the very best systems for fast, but appropriate, lending decisions. Accept that no-one ‘owns’ the customer, but ensure that the motor-finance offering is the one of choice. Use social media and other marketing tools to guarantee the consumer is aware of the motor-finance offer. lWork closely with introducers to provide consumers with a compelling proposal for their next car. l Are structures appropriate for today’s market – with fintech the traditional
Whether direct to customer or through the dealership model, the current practices are not conducive to retention of finance contract customers
processes and job roles should be challenged to reduce overheads but with enhanced introducer services and support. l Being able to defend challenges on affordability assessment and dealing with vulnerable customers. l Having a wide finance-product portfolio, for example personal contract hire should now be a core offering. lWith high contingent liabilities on GMFV’s, in a volatile environment, residual value setting requires the utmost care and attention. l Have a really robust process for on- boarding introducers that stands up to
scrutiny, with formal reviews being all encompassing. l Assess how to best fund electric cars, as they take a greater share of the used-car market, but still with minimal data on residual values. l Among the challenges facing asset-finance companies is how do they effectively re-market assets at the end of term and increase retention of their borrowers. Whether direct to customer or through the dealership model, the current practices are not conducive to retention of finance contract customers.
ADO: It is an interesting question around the cost of compliance because we are talking about quite small organisations, so we are talking about one individual being regulated, so there is a question of what is being done to the costs of these businesses.
MH: From a legal perspective, one interesting piece of news from the Summer was a decision in the Gordon case. This a County Court case, rather than
In Focus Consumer Credit
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Left-right: Hayley Rutherford; Jinmi Macaulay; Mark Higgins; Peter Cottle December 2019
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