Expanding the Horizons: Holding assets for longer

For a long time the automotive industry has been protected from disruption with high barriers to entry thanks to massive scale and manufacturing advantages, trusted brands and regulatory inhibitors. Digital disruption is beginning to lead to rapid transformation of the sector, bringing challenges and opportunities.

With a growing interest in the automotive finance industry in holding assets on the balance sheet for longer than first life-stage only, the industry’s vision is gradually moving from the business of selling many cars to one customer, in favor of selling one car to many customers. This strategy can allow captives to test a variety of fleet solutions and eventually implement them in a portfolio of products.

Based around IAFN research commissioned by Sopra Banking Software, this event will explore the new strategies that fit with this vision, such as subscription and car sharing services, leading towards not only Car-as-a-Service, but eventually Car-as-a-Platform. 

Following an introduction to the research by the author, Valerio Iannucci, which involved in-depth interviews with industry executives, you’ll have a seat at the table for our industry roundtable discussion with a chance to put your questions to the panel.

Register now to be part of the conversation!

An industry only, private event for asset finance professionals to attend during the lead-in to Xmas. 

Light hearted and fun – but also with a serious purpose. 

• Chairman: Adrian Dally, Head of Auto Finance, FLA
• Speakers : TBA

This event will be enjoyed most by UK consumer and business auto finance professionals – but all finance folk are welcome.

• Winner takes all: Judged by the audience to be most entertaining, insightful and persuasive the winning contributor will win a case of champagne. 
• Mace format: 7 minutes for each speaker first proposer; first opposer; second proposer; second opposer; questions/points from the floor (up to fifteen minutes) which can then be answered in summing up. Opposer sums up; proposer sums up. Points of interest stop the clock but cant be raised in the first or last minute of each speech. 
• Voting: Audience will vote before and after for or against the motion to identify which team achieves the greater swing.

Post pandemic, will you be ready to succeed in a customer-focused, environmentally sensitive, data-driven world?

From online services to environmentally aware finance models, COVID-19 has added rocket fuel to many pre-pandemic trends. Now, learn how two leading asset finance providers have harnessed the power of transformation to drive their own business forward.

In a webcast, Miles Rothbury, head of asset finance, HSBC UK, and Ian Durston, head of commercial performance, Global Financial Services, Jaguar Land Rover, will discuss:

• The Zoom generation - What faster digitalization means for personalized customer service and competitive differentiation
• Sustainable finance models - The growth of the circular economy and opportunities to develop pay-per-use and outcome-based finance
• Data is the key - Why data-driven organizations will be in a stronger position to make real-time decisions and deliver winning services

Next is Now: How human behaviour is changing and what this means for the customers of financial services today.

Human behaviour is changing at an unprecedented rate and financial service businesses are struggling to respond effectively. EY and NETSOL Technologies bring the latest thinking and cutting-edge research into human behaviour to the International Asset Finance Network to consider the implications of these changes. 

• Human Behaviour in a Post Covid-19 World
• What it Means to be Financially Vulnerable 
• What can behavioural science teach us?
• Implications for asset finance companies

The session will feature research undertaken during COVID-19 lockdown with both financial services businesses and their customers as well as reflections on what it means to step into the shoes of a vulnerable customer.

Expert Insights

60 minutes

- Industry panel

The UK’s Financial Conduct Authority will ban discretionary commission models from 2021 to end incentives for motor finance brokers and dealers to increase customers’ finance costs.

It is also changing its rules to make sure credit brokers give consumers more information about commission levels and structures.

The ruling follows a consultation by the FCA in October last year that found commission for some car retailers was linked to the level of interest charged, which created an incentive to sell more expensive credit.

Find out what this really means for dealers and finance companies in a one hour briefing from the IAFN Online team and expert panel.

In-depth insights

70 minutes

- Expert panel

- Adam Goodacre, business application and robotic automation development manager, Volkswagen Financial Services

This focused session will look at Robotic Process Automation and how it can transform equipment and auto finance operations.

It provides a detailed understanding of the concept of RPA and looks at how it can be used to benefit asset finance companies.

RPA provides rules based processing of repetitive functions so they can be automated to allow employees to move onto higher value tasks.

This includes exclusive case studies, looking at how leading companies in the industry have introduced the technology and how it has benefitted their businesses.

• Learn how Volkswagen Financial Services has automated manual processes using robotic process automation (RPA).
• Understand when to use RPA rather than developing new digital processes from VIP Apps Consulting, business process specialists for the asset finance industry.
• Insights on hyperautomation from RPA platform provider UI Path
• Practical advice from practitioners on how and when to apply RPA

The event also includes an extensive resource list of downloable insights, including how CIOs can redefine IT priorities and how to start your RPA and innovation journey.

COVID-19 Insights

86 minutes

 - Industry panel

In this special seminar, a panel of leading industry experts looks at the challenges facing the asset finance industry when it comes to forbearance and the future of collections.

The session examines the impact of COVID-19 on existing portfolios and also the lessons that can be applied to new business to help the industry to respond to any future crises.

The event includes delegate insights into what they think of the original forbearance scheme and where there could be improvements in future.

Delegates will also be able to download a range of expert research reports, including case studies on how new technology can support improved outcomes for finance companies and collections best practice.

Join co-founders of International Asset Finance Network Brian Rogerson and Edward Peck to discuss the outlook for auto and equipment finance industry as the UK starts to ease the lock-down.

Session framework

Effect of government regulation

•  Auto - FCA payment holidays; PCP balloon payments; scrappage and other future schemes
• Equipment –BBLs and CIBIL

Economic timelines

• End of lockdown June/July 2020
• End of furlough November 2020
• Potential resurgence of COVID-19 Autumn/Winter 2020/2021
• New year BREXIT transition end
• Repayment scheme interest payment holidays end June 2021

Sectoral demand 

• Auto demand affected by reduced appetite for public transport appetite, unemployment and potential for permanent structural changes from homeworking and increased focus on environment
• Effect of COVID-19 on niche funders, and dead cat bounce – funding investment in businesses for PPE and screens etc.
• Demand generation offers and impact on margins

Appetite of funders

• Competition for capital for auto captives versus investment in BEVs
• ABS/Block funders appetite to lend; technical defaults leading to liquidity shortages and higher cost of capital
• Future of block funding

Industry consolidation

• Which lenders will survive and which will go
• Lender risk appetite post funding
• Broker impact

Post Covid-19 landscape

• New scorecards to reflect new risks
• Real time data and early warning indicators

Chris Ballinger, chief executive officer and founder of the Mobility Open Blockchain Initiative

- 15 minutes

Blockchain technology has the potential to revolutionise the way mobility solutions are delivered and financed, drastically reducing the cost of providing services.

Vehicle-based services such as ride-hailing could have their finance processing costs slashed to a fraction of their current level using the technology and it could transform the type of payments being made.

MOBI is a global consortium that works with companies throughout the industry to establish common standards for the use of blockchain in the mobility industry.

It aims to build a worldwide network of cities, infrastructure providers, consumers, and producers of mobility services in order to accelerate the adoption of the technology.

In this session, Chris Ballinger explains how blockchain could be the foundation of the vehicle-to-vehicle and vehicle-to-infrastructure economy, as it provides confidence that transactions are compliant and protected from fraud, so a third-party such as a bank doesn’t need to be involved to verify and approve them.

ASSET FINANCE SERVITISATION 2/5

Panel discussion

20 minutes

In the second session of our five-part series on asset finance servitisation, a panel of experts consider the key issues facing the industry as it moves from ownership to usership.

This panel discussion, hosted by David Betteley, advisor to the International Asset Finance Network, looks at issues ranging from managing regulation to the legal implications of managing servitisation contracts.

As part of the session, the expert panel considers the growing shift to on-demand services, as customers look to pay for outcomes rather than the assets needed to deliver them.

They also examine the success that has already been achieved in areas including technology, which has embraced servitisation to support customer change.