IN the aftermath of FCA announcements of both motor finance in October and General Insurance (GAP/RTI mechanical breakdown insurance etc.) in November, dealers may be questioning the future of finance and insurance as a profit centre.
MotoNovo Finance, which is taking the lead in helping dealers to prepare for change is keen to ensure that dealers know that the FCA has announced publicly that this is not the case.
Karl Werner Deputy CEO MotoNovo Finance, said: “Creating good customer outcomes in dealers finance is the crucial route to ensuring that finance can continue to be a profit centre for dealers.
“Building a culture and processes around this principle both online and at POS can create good outcomes for customers and improved outcomes for dealers. Earning a return from financial services is – as the FCA chief executive noted earlier this year – about finding a balance.”
The continuing income potential available from finance was outlined by Financial Conduct Authority Chief Executive Andrew Bailey on the Inside FCA podcast published earlier this year.
He noted: “It sometimes gets put to us as a regulator, ‘you don’t want to see firms make any profit’, and I say, no, that’s ridiculous, because frankly, we wouldn’t have a financial services landscape [without it].
“We have to have firms that earn returns and earn what their shareholders expect, but it has to be balanced, it’s always a balance.”
Bailey’s comments resonated with Werner who added: “We view the balance that Andrew Bailey referred to as a ‘Triple Win’ – an outcome that works for the customer, dealer and MotoNovo.
“We have built a distinctive portfolio of products and services to help dealers to embrace the Triple Win and start creating good outcomes for one and all; it starts with the potential car buyer and a transparent lending solution.”
It is a process that Werner is clear has to start online and can, to a significant degree, finish online. With digital tools such as findandfundmycar.com and Self-Serve, he is confident that dealers can delight their customers and ‘earn while they sleep’ by helping customers choose dealer finance 24/7.