Financial outsourcer HML, a subsidiary
of the Skipton building society, believes it is in a position to
enable the entrance of new lenders to the UK motor market through
“white label” partnerships.
The company operates a totally
outsourced model whereby a funder would provide capital, but HML
would supply people, infrastructure and portfolio management for a
market entry.
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The company has recently started
exploring possibilities with overseas finance providers, as well as
venture capitalists and private equity providers in the
UK.
Graham Donald, HML’s commercial manager,
said the company is identifying sources of capital, but added
“there are no bites just yet.”
Once licensed by the Financial Services
Authority and registered at the Office of Fair Trading, Donald
said, a supplier of capital would be free to go direct to the
public or partner with dealer groups.
As well as courting potential new market
entrants, the company is exploring the domestic car finance market
with a view to purchasing and managing portfolios of PCP and HP
loans.
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By GlobalDataDonald said the company also had plans
to explore the development of deposit products to captive finance
companies with banking licenses.
“We’re making people aware of what HML
does,” said Donald. “We have huge experience within the mortgage
sector, but people don’t necessarily know we’re here in motor
finance.”
A full profile of HML and interview
with Graham Donald will appear in this month’s Motor Finance
magazine.
richard.brown@vrlfinancialnews.com
