Shift from Car Financiers to Mobility Mavericks: How Auto Finance Companies are Reinventing Themselves
By Wolf Brandes, Frankfurt
Lending entity transitioning into mobility design architect.
Dive into the ever-evolving landscape of automotive finance, and you'll stumble upon a colossal player: Volkswagen Financial Services (VW FS). With a whopping managed asset volume of 313 billion euros, VW FS outshines the competition, including Toyota Financial Services (269 billion euros) and BMW Financial Services (165 billion euros), as per zeb.research.
However, the financial arm of a car manufacturer isn't just cash cowing its way through the industry anymore. Rather, these financial behemoths are transforming into strategic mobility players by leveraging digital platforms, automating processes, and embracing innovation.
From Classic Sales Financiers to Digital Disrupters
- No More Manual Grind: Auto finance companies are abandoning manual processes in favor of digital technologies. Enterprises such as VW FS are automating their operations with integrative leasing software solutions that streamline processes, boost efficiency, and cut operational costs, like their implementation of SOFICO Miles Enterprise[2].
- Mobility beyond the Metal: They're stepping out of their traditional roles by offering mobility services like car-sharing, subscription models, and fleet management. These innovative offerings cater to evolving customer demands, from flexibility in transportation to environmentally-friendly solutions[1].
- Power in Partnerships: They're forming strategic alliances with tech firms and other mobility providers to keep ahead of the curve. VW's collaborations in AI-driven engineering, like its tie-up with Rivian, exemplify smart bets on electric mobility and cutting-edge technologies[5].
Volkswagen Financial Services: At the Forefront of the Change
VW FS is leading this transformation by:
- Technology Embrace: By modernizing its operations with SOFICO Miles Enterprise, VW FS has become more agile and customer-focused[2].
- Consumers First: Enhancing customer experience is a priority, and VW FS achieves this by offering digital access to various mobility services in sync with Volkswagen Group's mission of providing "Mobility for generations to come"[1].
- Strategic Gameplay: Capitalizing on Volkswagen Group's broader strategic initiatives, VW FS remains a significant force in the transition towards more sustainable and innovative mobility solutions[5].
- In an attempt to boost efficiency and reduce operational costs, auto finance companies like Volkswagen Financial Services (VW FS) are adopting digital technologies, such as integrative leasing software solutions like SOFICO Miles Enterprise.
- Moving beyond their traditional roles, auto finance companies are now offering diverse mobility services such as car-sharing, subscription models, and fleet management, like VW FS, as they cater to evolving consumer demands, including environmental sustainability and transportation flexibility.
