Many companies are still using the internet in its most basic
form as a means of accessing emails, rapidly transferring
information electronically and looking at web pages. But the
potential benefits are much greater – for example as an extra
channel to market or a means of reducing costs – Oyster Bay
Systems

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They require point-of-sale systems which support multiple channels,
which deliver innovative products to market quickly and provide
effective collections to manage arrears –
TietoEnator

Many businesses want to improve their customer service levels and
responsiveness, and doing that traditionally leads to a rise in
operating expenditure. Shrewder operators, however, have realised
that exploiting technology is the right way can help them
differentiate their products and services without incurring the
additional costs – CHP Consulting

As borrowers become more web aware, the requirement to deploy
applications in a web-2.0 environment is ever more critical –
Bynx Europe

They require a system that is available 24/7, accessible from
anywhere at anytime, and even in off-line mode from a laptop or a
mobile phone. The system must store data and be automatically
updated with the latest finance schemes and data models with upload
and download functions relevant to the end user –
Copernicus

Without doubt they require the need to easily integrate with
lenders. The trouble seems to be that lenders seem still to be
extremely apathetic regarding XML – and many of their personnel on
the front line don’t even know what it means! – Frontline
Solutions

Overall systems needs have remained unchanged for a number of years
now. For example, all businesses have been seeking to maximise
efficiency by increasing integration with business partners and
then applying balanced scorecards to provide risk-based pricing and
better profiling of customers. This leads to increased emphasis on
effective customer management and CRM in general and arrears
management – icenet

Codeweavers’ response, however, was more radical than the others
– especially when viewed from the front office. James Tew,
Codeweavers’ managing director explains: “With more consumers
researching their next vehicle purchase and finance and insurance
options prior to visiting a dealership – it is imperative that they
are informed of all the available options as early in the process
as possible. This means engaging the customer pre-point-of-sale and
allowing them access to a full range of interactive finance
solutions utilising the dealer’s website as the conduit.”
Codeweavers’ recently-launched system, YourCarLoan, gives the
dealer the ability to integrate seamlessly their vehicle stock with
the finance calculators and proposal mechanisms of their preferred
lender. Tew adds: “It allows the dealer to control the finance
price on each product and vehicle, and this enables their customers
to access their options and even apply in advance, where the
service is exposed on their website.”

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Q:
How do you see software companies developing given the ongoing rate
of sector consolidation?

A:
Motor finance is an increasingly
competitive, dynamic industry and its operators are turning
increasingly to technology for the competitive edge. Only those
software companies offering a truly integrated workflow-enabled
technology will succeed – CHP Consulting

Software companies need to prepare their software to distinguish
separate corporate brands within the overall portfolio. The ability
to provide management reporting at all levels will provide a
consolidated management account with appropriate granularity at the
lower levels – APAK Group

We have addressed the restrictions placed on suppliers by sector
consolidation by seeking to expand into other related and
complementary areas. This is the most workable route for businesses
wanting to flourish and grow – Welcom Group

The sector consolidation in the UK makes it very difficult for
specialist software companies to survive. There will be opportunity
for small 10-man software companies to develop stand alone
specialist products for the UK market, but ultimately these
companies will have to embrace the overseas market to survive – or
be acquired by an international company – Bynx Europe

I think it will be very difficult for new firms to enter
the sector as it is now a very parallel market. The future of
development lies in assisting a client to find new profit centres
and customer retention – Frontline Solutions

Whenever two businesses merge it always seems to spin off a number
of start ups. As a result, it could be argued that large scale
consolidation in finance companies requires software companies to
‘productise’ their solutions more effectively for new start-up
businesses – icenet

Sector consolidation is a cyclical issue and new entrants will
continue to appear, generating new opportunities. New opportunities
will emerge since lenders need to increase efficiency and
productivity. They need to replace legacy systems, enhance customer
service and meet new compliance targets. Globalisation will add
pressure for multi-nationals to centralise the purchasing of IT
solutions, giving rise to further replacement system opportunities
– White Clarke Group

Although the future of motor finance technology companies is
assured the extreme competition in the sector will ensure the need
for evolution. As Darlow-Canvin says: “Future benefits will only
accrue to software companies that continue to invest and have a
global capability to meet their sector’s needs. They will have to
demonstrate that they have the necessary professional service and
implementation skills to understand and translate client needs into
robust and cost-effective solutions.”

Toyota Financial Services (UK) plc (TFS), the captive automotive
finance company for Toyota and Lexus in the UK, has adopted APAK
Group’s dealer stock funding system, (WFS). 

Paul Waters, dealer credit funding manager at TFS told Motor
Finance that, at the time, the company was going through a process
of insourcing all of its back-office functions.“This meant,” he
said, “that a new system was required to replace the existing
outsourced wholesale solution. 

TFS required a system which would provide new, demonstrator and
used unit funding and well as term loan and current account
functionality, it must be able to support some 200,000 new unit
transactions and 30,000 demonstrators being changed four times a
year. In addition, the system needed to have used funding
capability for 30,000 vehicles during a 12- month period.
Furthermore, it had to cater for TFS’s 40 internal users, 210
Toyota dealerships and 50 Lexus centres. 

Waters explained:“We went through an extensive request for
information from around eight systems providers.We carried out site
visits to view both their business and technology functions. In
addition we carried out a gap analysis – to investigate in each
case what we needed and what their system actually provided. It was
a pretty thorough selection process.” 

TFS chose APAK Group’s system because of “APAK’s depth of
knowledge of the automotive sector and expertise in wholesale
funding”. 

Although only used in the UK by TFS,WFS supports multicountry,
multi-company and multi-manufacturer relationships as well as
dealer group structures.The web-enabled on-line dealer system
provides dealers with views of their inventory, available credit,
vehicle detail and history. 

Waters concluded:“Since launch,APAK has been very flexible in
its system enhancements.The interface with our dealer network has
been excellent and works as virtually a real-time process. Since
implementation we have seen new wholesale funding volumes rise
significantly at TFS – which the APAK system has accommodated
well.”