Upcoming regulation under the Financial Conduct Authority (FCA) may provide a lift to online motor finance, according to industry technology provider iVendi.
The company believes the way in which online motor finance processes are being written in order to be fully FCA compliant will mean they provide a simpler ‘off-the-shelf’ option for dealers when it comes to selling finance.
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iVendi Director James Tew said this will mean dealers are likely to place a greater emphasis on car finance through the web, boosting the sector.
Despite this, Tew warned: "The arrival of the FCA does mean very significant changes in the way in which dealers handle finance and it will take time to work through and find out exactly what it means for the industry."
However, industry reaction to the nascent Authority has been mixed, ranging from the hopes held by some debt collection agencies for an end to the previous licensing regime to the Finance & Leasing Association’s fears of lenders exiting the market.
