The latest Asset Finance Connect webcast features a follow-up interview with Richard Jones, MD of Motor Finance & Leasing, Lloyds Banking Group on rate-for-risk, a pricing model which they have used in the past, and are currently re-evaluating in a series of pilots with auto dealers in the UK.
“Rate for risk could have a bigger role in the [auto finance] market.” Jones told David Betteley, Asset Finance Connect’s auto finance community leader “But it changes the model. You’ve got to give the driver a sense of their credit-worthiness right at the start of the journey… If you’re a retailer it changes the way you advertise vehicles, and it changes the way you market.”
- Hear why the FCA are thinking more about rate-for-risk and how it differs from fixed rate models that are prevalent in the UK
- Learn where rate-for-risk opportunities lie and understand the challenges for existing sales, risk and compliance departments
- Understand the technologies which can help establish credit-worthiness at the start of the customer journey and manage a new model