The automotive financial services market has been a bountiful source of inspirational success stories in recent years, but what about five years’ time? What will be the trends and challenges shaping the industry? What transformations need to take place? With these questions in mind, KPMG has conducted a Global Captive Finance Study and used the conclusions as the basis to develop new solutions to help global captives ensure their future success.
KPMG’s outstanding reputation in captive finance was confirmed at last year’s Motor Finance conference & awards when it was awarded Advisory Firm of the Year. While no such award category was up for grabs this year, two of KPMG’s Captive Finance experts, Sandra Speckbacher and Ulrich Bergmann, co-heads of the Global Captive Steering Group, were at Motor Finance conference 2017 to give an impressive presentation about the future of global captives, which was exceptionally well received. They shared some initial insights into KPMG’s Global Captive Finance Study, which is set to be published around the end of May 2017. The key themes were the global and multidimensional challenges facing automotive captives, the way these challenges will influence current business models, upcoming trends, and KPMG’s solutions to overcome the challenges that lie ahead and ensure continued success.
Sandra Speckbacher summed up the key message in one sentence: “Automotive captives must transform their business model into an open platform for financial and mobility services”.
Recognizing the critical need for transformation across many captives in this sector, KPMG has developed a Business Model Readiness Assessment tailored to their specific needs, identifying relevant action areas and paving the way for an integrated captive business model.
Ulrich Bergmann said: “Companies often feel too comfortable to initiate a transformation of their business model – and it can get too late, as demonstrated by Kodak or RIM/Blackberry.” In every industry, there is a ‘next’! Steve Jobs once said: ‘If you don’t cannibalize yourself, someone else will’. That’s why every business needs to stay ahead of its competitors and keep meeting customer needs.
If you would like to learn more about the challenges facing captives and KPMG’s innovative solutions, please download a copy of the Global Captive Finance Study that will be published around the end of May on KPMG’s Captive Finance Website. For further details please contact Sandra Speckbacher or Ulrich Bergmann.
Captives today are facing major challenges in the form of increased competition, the rise of digitalization, growing standardization, new regulatory requirements, and changes in customer behavior and expectations. KPMG wanted to create more clarity surrounding the challenges that face captive and automotive finance companies in this continuously changing environment, so assembled a team of its best experts to conduct a wide-ranging online survey at the end of 2016. The survey included more than 100 of the top executives behind global automotive finance providers, simultaneously granting these executives the opportunity to share their views with peers across the market.
All wide variety of firms were included in the responses, including not just captives but also banks, fleet management and leasing companies, mobility service providers, white label companies and fintech specialists. The firms these executives represent are of various sizes from all around the world, providing a truly global snapshot.
The results of the survey emphasize the high speed at which the current business environment is changing, with an expected high impact on underlying business models, products and services, IT, sales channels, customers, and suppliers – perhaps also giving rise to disruptive trends from new competitors. KPMG’s experts analyzed the results to draw conclusions that pave the way for the New Integrated Captive Business Model 2.0, ensuring the future success of captives. Big data analysis and predictive customer analytics are key to developing the products and services that will speak to the markets of the future.