Secure Trust Bank (STB) has bolstered its motor finance operations with an appointment to a newly-created position, as the lender targets business beyond its Moneyway non-prime brand.
Estelle McConnell has been appointed head of sales for broker, online and key accounts. She had been with Close Brothers Motor Finance for over seven years, most recently as sales manager, and was business development manager for motor at HBOS before that.
Her appointment follows a major reshuffling at the top of Secure Trust Bank’s motor finance leadership, which among others saw the appointment of Close Brothers veteran Ciara Raison as head of dealer sales and GE Capital’s Tim Maffey as finance director.
The ongoing reshuflling forms part of Secure Trust Bank’s move away from higher-risk customer business towards what a spokesman called a “middle-ground” segment. The spokesman confirmed the remit of the new motor finance leadership would include but not be limited to the Moneyway brand, which in March reported a 42% year-in-year increase to £20.8m in its legacy subprime portfolio.
At the time, STB chief executive Paul Lynam cited increased competition and regulatory scrutiny of high-cost credit as reasons for the “retrenchment” from business in the three highest customer risk tiers. He said the bank shared the Bank of England’s concerns about a “mispricing of risk, and has reacted accordingly by exiting markets most affected.”
STB, which discountinued a prime product last year, said it was looking to build a renewed prime proposition for the future, with the aim of building a “sizeable” presence in the segment over the next three to five years.
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On Tuesday, the bank reported a £272m balance for its first-half motor finance portfolio, up 5.2% from the same period last year. The STB spokesman confirmed the growth in balance had been helped by the credit risk adjustment effected over the past year.