Insights

Unlocking the hidden potential of automotive captive banks

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

Percentage of mobility segments in 2014 vs 2040, by country

(100%) = indexed volume of passenger transportation in 2014
* = index volume of passenger transportation in 2040 compraed to 2014


Germany
United States
China
CAGR
-0.1%
CAGR
0.6%
CAGR
4.7%
All
Mobility Planning
Public/Shared Mobility Service
Individual Mobility Services
Used Car Sales
New Car Sales

Source: Oliver Wyman market model

Unlocking the hidden potential of automotive captive banks


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Percentage of mobility segments in 2014 vs 2040, by country

(100%) = indexed volume of passenger transportation in 2014
* = index volume of passenger transportation in 2040 compraed to 2014


Germany
United States
China
CAGR
-0.1%
CAGR
0.6%
CAGR
4.7%
All
Mobility Planning
Public/Shared Mobility Service
Individual Mobility Services
Used Car Sales
New Car Sales

Source: Oliver Wyman market model