Moneyway, the motor finance arm of Secure Trust Brank, is planning to launch a finance product for the prime sector in the first quarter of 2015, as part of its plan to double the volume of business over the next two years.
John Simpson, who was appointed managing director of Moneyway in June 2014, told Motor Finance the aim was to become a "one-stop shop" for dealers.
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He said "Most lenders tend to operate in specific niches and you’ll be aware of that. They have their specific areas. I think what we want to do is operate across a wider arear of the risk curve to enable us to be a company that offers products for all customers. That is going to put us in a position where we’re operating from prime through to non-prime."
Simpson said the company is looking to move into the sector in a ‘controlled’ manner as it is a part of the market the company has not featured in significantly before.
Moneyway’s current business strategy involves is providing finance for customers who have been looked at and rejected by other lenders, and according to Simpson this makes up a significant majority of Moneys current business.
However by moving into the prime space, Simpson hopes Moneyway will be able to move up what he described as the lending hierarchy, to become the first finance companies dealers look to.
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By GlobalDataAlong with the move into prime, Simpson revealed recruitment plans: "we’ve just recruited an account manager in Scotland, one in greater London and a new starter starting in the Yorkshire area, and we’re looking for staff in the South West and North West, along with looking to bring somebody in to support our specific business development. Our target is to have the majority of those positions and in place for the New Year."
According to Simpson, although the move into a new market will require greater staff numbers from the lender, the new recruits will be working across the credit curve, as opposed to just the prime sector. He said: "So it’s partially driven by our desire to widen our product appeal, but also to support the general growth ambitions we’ve got."
In July 2014 Moneyway reached record revenue levels, and the company said in a statement it hoped to double its business volume over the next two years. Simpson said: "In the last 18 months, the car industry has made a significant turnaround, with sales now approaching pre-recession figures. As consumer demand increases, we plan to expand our sales team, enter new markets and develop new products in the prime space."
