The Financial Conduct Authority (FCA) review into remuneration practises in the motoring industry is likely to have a significant impact on sales and motor finance, according to Karl Werner, chief executive officer of MotoNovo Finance Motor Division.
The FCA announced a review of remuneration practices and began a consultation on new rules in July, criticising high risk incentives and inadequate or ineffective controls.
Werner said the review would affect customer facing staff and their managers across all areas of lending and collection activity, causing a significant impact. He added that the changes were likely to be required.
He said: “Overall, we believe that the changes that are likely to be required will help to enhance consumer and perceptions of dealer finance by ensuring their needs are at the forefront of the credit process.
“Dealer finance will remain a key aspect of car sales and we continue to believe that the dealer will be an important part of this process.”
Werner added that technology could play a role in improving the customer experience by allowing a greater deal of control on the part of the customer.
He said: “It seems probable that we will see a wider role for technology with the customer taking greater control of their own finance journey.
“Our new Self-Serve application, which is available in the showroom, or in the customer’s home or office would appear to suit this role, in supporting both the dealer and consumer.”