UK asset finance market falls 60% in May as rate of decline gathers pace

Falling demand for asset finance accelerated in the UK during May as new business dropped 60% compared to the same month last year, according to the Finance & Leasing Association (FLA). FLA figures show that total asset finance new business (primarily leasing and hire purchase) declined 44% in the three months to the end of May, compared to the same three months last year. The commercial vehicle finance and business new car finance sectors were hit particularly hard, with demand down 62% and 87% respectively.

UK asset finance market falls 60% in May as rate of decline gathers pace

Jul 03, 2020

Demand slowly returns to UK car finance market as dealers shift to online sales

The UK consumer car finance market saw a small improvement in demand during May compared to April, although the market is still a fraction of its size compared to the same period last year. The total value of advances was down 78% in May, compared with 2019, but this represents an improvement on April, when the market collapsed by 94% year-on-year at the height of the Coronavirus crisis. New business volumes in the consumer new car finance market fell back 86% during May 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members was 94.3% in the 12 months to May 2020. The consumer used car finance market reported new business volumes 73% lower in May 2020 than in the same month in 2019.

Demand slowly returns to UK car finance market as dealers shift to online sales

Jul 03, 2020

Latest IAFN Online event forecasts winners and losers post-COVID

In the latest of a series of online conferences run by the International Asset Finance Network (IAFN) delegates were informed of a range of topics surrounding auto and equipment finance liquidity. Speakers at the event included a range of senior professionals with a wealth of industry experience, including:

Latest IAFN Online event forecasts winners and losers post-COVID

Jul 03, 2020

How augmented intelligence can unlock growth in auto finance

User experience will prove critical to extracting the most valuable insights from data as companies generate ever-greater quantities of complex information about their businesses and their customers. Although robotic process automation, analytics, and artificial intelligence can generate a wealth of valuable business data, it will never become actionable insight unless it is transformed into a usable format that executives can understand. If data is not easy to digest and interpret, then it will not provide the benefits that companies need, according to Alex Plenty, vice-president, data and analytics, Genpact. He warned: “I hear a lot of times of people building ‘data lakes’ but the data is not getting out to the business fast enough.”

How augmented intelligence can unlock growth in auto finance

Jun 22, 2020

Alfa whitepaper reveals impact of LIBOR reform on asset finance providers

Asset finance software and services provider Alfa has published a new whitepaper that provides in-depth guidance on LIBOR reform. LIBOR rates are used by auto and equipment finance businesses globally as a benchmark to determine customer interest rates. However, LIBOR, EURIBOR and other such rates carry inherent shortcomings that have led to their planned replacement by alternative risk-free rates such as SONIA and SOFR. In the whitepaper, called LIBOR Reform: The Impact for Auto and Equipment Finance Providers, Alfa analyses the changes, why they are happening and what impact they will have on asset finance providers.Issues covered include how asset finance company systems must be enhanced to accommodate the changes.

Alfa whitepaper reveals impact of LIBOR reform on asset finance providers

Jun 10, 2020

Joju Solar unveils finance product for EV charging infrastructure

Renewable energy operator Joju Solar has unveiled finance product for both rapid and standard electric vehicle (EV) charge points in the UK. As the transition to EVs appears to be continuing – if not accelerating – alongside the pandemic with manufacturers ramping up investment, the company has noted increased interest in its charge point finance solution. According to the company, external funding enables local authorities to install public charging infrastructure at zero upfront cost. The council is then able to cover the cost of the charge points, their maintenance and even make some profit for the host site as drivers pay to use them. Joju also provides workplace charging schemes.

Joju Solar unveils finance product for EV charging infrastructure

Jun 30, 2020

Rallying the industry: Senior equipment lenders give their views on liquidity issues facing the asset lending sector

Rallying the industry: COVID-19 Legacy. As the asset lending sector gets increasingly affected by liquidity issues IAFN sought the views of senior equipment lenders at its recent online conference.

Rallying the industry: Senior equipment lenders give their views on liquidity issues facing the asset lending sector

Jul 02, 2020

Rallying the industry: COVID-19 Legacy. As the asset lending sector gets increasingly affected by liquidity issues IAFN sought the views of senior equipment lenders at its recent online conference.

Quotevine launches new loan solution in response to urgent calls for support from SMEs

UK-based fintech cloud solutions provider Quotevine has developed a business process management package to help asset finance brokers respond to the heightened demand in the marketplace. Although High Street banks were able to pump £2 billion into the economy in just 24 hours at the start of the crisis to support big business, it became clear to Quotevine that the volume of applications from SMEs could overwhelm their systems, leading to applications being declined in error or payments delayed.

Quotevine launches new loan solution in response to urgent calls for support from SMEs

Jul 02, 2020

Bynx aims to drive increased productivity & new revenue opportunities for its customers with release 12.12

Bynx has launched release 12.12 of its flagship fleet, leasing and mobility management platform Bynx, which will be available to both existing and new customers as of July 2020. The new version builds on the industry’s drive away from data-centric paradigms to process oriented systems that deliver greater efficiency, productivity, flexibility and superior customer experience.

Bynx aims to drive increased productivity & new revenue opportunities for its customers with release 12.12

Jul 01, 2020

More than 1 million UK businesses supported under COVID-19 lending schemes

The banking and finance industry has supported more than one million UK businesses with lending schemes to help them through the Coronavirus crisis, according to new figures published by HM Treasury. Facilities worth £42.9 billion have been approved through the Coronavirus Businesses Interruption Loans Scheme (CBILS), Bounce Back Loan Scheme (BBLS) and Coronavirus Large Business Interruption Loan Scheme (CLBILs). The number of finance agreements approved is around 14 times higher than the long-term quarterly average for this time of year.

More than 1 million UK businesses supported under COVID-19 lending schemes

Jun 30, 2020

VIP Apps Consulting partners with GrowCap to help industry leaders succeed in a post-Coronavirus market

Specialist consulting firms GrowCap and VIP Apps Consulting are working together to help asset and motor finance providers adapt their strategies as the Coronavirus lockdown ends. The two companies will guide business leaders to quickly identify processes that need to change and then quickly introduce a re-engineering programme. A key aim of the combined approach is to accelerate and de-risk clients’ activities and improve staff skills to drive ongoing internal change. One area of particular focus is the support of remote working, while ensuring the right levels of productivity, oversight and performance measurement.

VIP Apps Consulting partners with GrowCap to help industry leaders succeed in a post-Coronavirus market

Jun 30, 2020

Leumi ABL appoints Phil Woodward as new CEO

The asset-based lending subsidiary of Bank Leumi UK has appointed Phil Woodward as its new chief executive officer. Woodward (pictured), formerly the company’s managing director, replaces Paul Hird, who is retiring. Hird and Woodward co-founded the business 14 years ago. As CEO, Woodward will be responsible for overseeing the entire activity of the asset-based lending specialist.

Leumi ABL appoints Phil Woodward as new CEO

Jun 29, 2020

Singapore ride sharing app Ryde introduces bitcoin payments signalling the future of cryptocurrency

Ryde, a ride-sharing service provider operating in several large cities across the globe, has announced that its customers based in Singapore will now be able to pay for rides with bitcoin. The company’s users will be able to convert bitcoin into its own ‘RydeCoin’ with zero transaction costs, and in a single payment, customers are able to top up a digital wallet named ‘RydePay’ to a total of SGD999 ($716.46) in bitcoin to pay for rides.

Singapore ride sharing app Ryde introduces bitcoin payments signalling the future of cryptocurrency

Jun 29, 2020

VW Financial Services’ new CCO promises to stimulate showroom sales

The new chief commercial officer of VW Financial Services (VWFS) has vowed to help “get Britain moving again” in his new role. Carl zu Dohna (pictured) has 20 years’ experience in automotive management and previously worked as director of VW Commercial Vehicles before taking the new role in May.

VW Financial Services’ new CCO promises to stimulate showroom sales

Jun 29, 2020

Lee Rhodes appointed new commercial director at Aldermore to head up asset finance business

Lee Rhodes, currently commercial director, wholesale finance, has been appointed to the new position of commercial director, asset finance at Aldermore. The move comes as the current commercial director, asset finance sales; Patrick Jelly has decided to leave Aldermore. Rhodes will assume responsibility for the new joint role in the beginning of July 2020.

Lee Rhodes appointed new commercial director at Aldermore to head up asset finance business

Jun 29, 2020

Residual values improve for older cars as used car dealers adapt to new ways of working

Used car markets across Europe have shown strong signs of recovery as buyers return following the lifting of some lockdown restrictions, according to industry experts. Despite growing demand, it will take years to repair the damage from the market shutdown, with estimates suggesting dealers’ used car operations have suffered losses totalling €2.6 billion, according to market analysts Autovista. The countries that expect to come out of the crisis faster than others are Germany (with plans for a €130 billion economy incentive scheme that has just been announced), Poland, Czech Republic, the Netherlands and Slovakia.

Residual values improve for older cars as used car dealers adapt to new ways of working

Jun 26, 2020

New research reveals picture of UK's biggest lessees

Now more than ever, we need to know who the big lessees are Why do companies lease equipment? The potential reasons are many...the cash flow benefits, funding availability, flexibility, convenience, cost, and so on. That all works for the small and medium-sized enterprises (SMEs) that make up over 99% of UK businesses, but what about the largest companies? This includes the UK's 8,000 firms with over 250 employees; they make up 48% of UK business turnover. Given the Government-backed bounce back loans available to small businesses, they might be the first to need to lease new equipment in the recovery.