Our proposition
To leverage the brands and customer bases of OEMs, retailers and car finance companies by building simple and focused banks for them, so they may take control of car financing, slash costs, generate significant new revenue and own the customer
Background
Significant new revenues are needed to offset huge transformation costs but automotive companies are surrendering millions in car finance income to the banks.
We want to help reset revenue flows away from banks towards manufacturers and retailers by building simple banks for them
Most of the revenue currently being taken by the banks will be theirs.
Ford Money currently offers savers up to 5% to fund financial products and services to its retailers and customers
Proposition
Our objective is to generate up to £30m of revenues each year for an average of 3 years per £1bn of lending, transforming most automotive companies’ bottom lines.
Ford Money is the benchmark. It is a viable, sustainable source of cheap funding to its parent and is very successful. We will build similar business models for our clients.
We will write the Regulatory Business Plan, encapsulating the Finance, Operating and Risk models.
Market and consumer research will determine product design, delivery, pricing and business volumes. We will determine what will be undertaken in-house and by third-parties, Saas or Baas, resilience planning, security, Consumer Duty, ESG, on or off-balance sheet lending, 3-lines of defence etc. In excess of 40 fundamental policy documents, all required in a banking licence application, will be submitted to the banking regulators.
The infrastructure will be built ie products designed, processes defined, technology deployed, systems tested, staff recruited and trained, service levels defined and everything tested to destruction.
Subject to regulatory approval, a very soft launch will ensure everything is working perfectly and a gradual increase in volumes will be carefully monitored. Everything is reviewed in real-time and measured against Plan.