Finance providers and auto dealers will need to adapt their business offering as a growing proportion of customers switch from vehicle ownership to usage-based services.
A vital element of this change is ‘thinking digital’ to ensure services remain relevant to the connected consumer.
This growing community is already comfortable with pay-on-use services such as mobile phones and expects digital services to provide added value and a great user experience.
Andrew Brameld, managing director, motor finance, at BNP Paribas Personal Finance, said: “In Asia now, 30% of the population would consider car sharing, in Europe it’s 20%.
“It does feel like we are at the cliff edge of major change with electric vehicles and car sharing. The customer will drive that.”
He urged dealers and finance companies to “think digital” to provide seamless services that are easy to use, which will bring suppliers closer to customers in an online world.
He added: “When you are on a monthly subscription model, it’s those people who can create a relationship [with customers] who will win.”
To hear more on the journey to servitization, watch this exclusive video, courtesy of global automotive, consumer and equipment finance software company White Clarke Group.
You can also view and download a new report on servitization that was supported by White Clarke Group here.