The role of automotive captive banks is changing. In the past, they served as a sales booster to the vehicle manufacturer by enhancing the value chain and offering innovative financing solutions, which helped subsidize the parent company’s sales.
To ensure long-term sustainability, captive banks need to focus on offering a customer-centric portfolio of digitally based mobility solutions tailored to the fast-changing requirements of car buyers. Leveraging their unique position in the value chain – direct access to customers – provides captives an advantage that needs to be unlocked. If it is, captives could become the most powerful channel for future business.
Demand for New Mobility Solutions is on the Rise
New and used car sales will fall over the next 30 years
