A finance provider might know a customer’s address, income level and details of their finance arrangement, such as term and mileage.
But with increasing consumer interest in mobility services, Banister is concerned this doesn’t go far enough, as it provides little insight into customer requirements.
He said: “Mobility services is about a lot more. You need to know how that car is being driven, potentially through telematics. You need to know when the car is being driven, what is the purpose of that trip and who is actually on the trip.”Banister was speaking to delegates at the International Auto Finance Network conference and you can watch key points from his presentation in the above video provided courtesy of White Clarke Group - the world leading provider of end-to-end finance software.
When suppliers get closer to their customers, it drives new innovations as companies think differently about the way they provide finance, particularly when it comes to flexibility.
For example, Canvas in the US has taken lessons from mobile phone contracts and applied them to car finance. Instead of minutes, customers pay for miles, which they use as required during the month, or they can roll unused miles over to the next month.
This level of flexibility is the type of innovation customers are looking for and it can only be delivered though a closer understanding of their requirements.
“There are new rules, there are new brands and I fear a little bit for traditional car finance companies because I don’t see where you’re delivering the innovation,” warns Banister.
The key is ensuring relationships go beyond Know Your Customer to drive better understanding of customer needs to inspire products and services fit for a new era in auto finance.