With markets hardening and credit becoming tighter, motor
lenders may be seeking economies in their software outlay. Brian
Rogerson asks whether software providers are worried at the
prospect
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2008: a defining year
Richard Carter of icenet
contends that 2008 will be a defining year for software company
consolidation. “The lack of liquidity,” he comments, “will impact
on brokers’ and lenders’ own businesses and hence will affect their
liability and desire to engage in discretionary projects.
Additionally, in cases where consolidation comes about through
business failures this, in turn, will affect revenues for systems’
suppliers.”
Welcom
Software plans a modular approach to the hardening marketplace.
Peter
Richmond says: “We provide modular alternatives in our entire
product offering. One of our main business objectives is to discuss
with clients what they perceive to be their corporate strategy
requirements for, say, the next three to five years, and work on
pricing models accordingly. Software is an investment, not a cost,
and we seek to ensure that our customers can expect measurable
returns when they come to see us.”
Mark Binks, meanwhile, believes that “recruiting and retaining
staff” will prove to be a principal challenge for 2008 he also
intends “to keep out of the sub-prime chill factor which could
possibly influence the bank-owned vehicle leasing companies”.
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By GlobalDataSome believe that they have already laid the ground work for the
future. “We feel well placed for the challenges ahead,” Andrew
Denton asserts. “We have continued investment in our software, our
people and the company’s infrastructure. 2008 will see us continue
our global growth as well as delivering a number of exciting new
software products and customer implementations.”
At Codeweavers,
James
Tew believes his greatest challenge to be “overcoming people’s
traditional mindsets regarding the UK motor finance market and its
consumers”. He explains: “Inertia from certain clients with regard
to change will continue to prove challenging. In addition, concerns
in the non-prime sector and the recent credit squeeze will have
their impact.”
Martin
Drake of DRIVE
intends “to increase our overseas sales success – but on a
cost-effective basis, as well as communicating our product and
support capabilities to prospective customers more
effectively.”
APAK
is also looking abroad. Mark
Johnson says: “Geographic expansion provides the greatest
opportunities – but also provides the biggest challenges. A
strategic approach is important to ensure that clients are
supported and the brand name is not diluted by geographic
spread.”
Kyle Truman says that growth in use of epyx’s platforms is
“increasing so quickly that our biggest challenge will be to
continually improve our service levels in the same manner as we
have achieved in the past. However,” he adds, “we are confident
that we have the resources in place to make this possible.”
Motor Finance Issue: 41 – March 08
Published for the web: March 26 08 16:15
Last Updated: March 27 08 13:10
