Who we work with

We offer OEMs, retailers and car finance firms the opportunity to create their own simple banks to take control of car financing and generate significant new revenue

OEMs

OEMs face many challenges yet £1.3bn of car financing revenues will pass them by this year.

Our proposition for an OEM bank transforms the distribution model:

It may generate £30m of revenue each year for an average of 3 years per £1bn of lending and up to £20m of PBT when operating costs and regulatory capital are accounted for.

A typical OEM generating £5bn of car financing may therefore generate up to £150m of new revenues and £100m PBT, plus the £150m arranged last year and the £150m arranged the year before.

3 out of 4 cars sold require finance but the sales model is outdated and benefits the banks rather than the manufacturers.

Our OEM bank customer proposition:

Retail savings (the cheapest form of funding) will fund lending, enabling cheaper car finance deals.

Car insurance will de-fragment the buying process for the customer; it’s all under one roof.

Credit cards will generate customer data to use to build effective CRM programmes.

OEMs have the brands, customer bases and turnovers to warrant having their own banks

Get in touch now

Retailers

Retailers face similar challenges to the OEMs and also give away huge revenues to the banks.

Retailers currently pay 1.5-2% above base rate for loan facilities. When their margin is added, customers pay an average of 13-14% APR.

Compare that to the average 2.77% interest paid on instant access savings accounts or the 3.8% paid on average for term savings accounts. With their own banks, retailers could more than halve their cost of funding.

How many more cars could they sell if their loans were half-price?

Large retailers have the customer bases and turnovers to warrant their own banks. Some could even join forces to create a JV bank

Get in touch now

Car Finance Companies

Apart from Ford Money, captive car finance companies are lenders, not banks; without a banking licence, they are unable to raise funding from retail deposits.

Instead, they use securitisation programmes to fund their lending. Margins are tight, credit ratings from agencies can be problematic and markets fluctuate. Securitisations can be complicated and returns are modest.

Revenues are being given away

Captive finance companies don’t make much money; they introduce lending to the market for little return.

Extending their permissions with a banking licence to take retail deposits will transform their business models and their bottom lines.

We will do all the work to plan, build and, subject to regulatory approval, launch the bank.

Get in touch now