While many business fundamentals remain the same, other aspects of the industry are transforming at the fastest pace in decades. For years, a familiar group of established captives and lenders have dominated the industry based on buy rates, credit risk appetite and dealer service. Instead, a new group of alternative lenders and alternative transportation providers (led by business strategies more akin to Silicon Valley start-ups) are disrupting the status quo. By putting the consumer back in the driver's seat, they are empowering consumers with innovative mobility and transparent financing alternatives. Technology is redefining the automotive sales and finance landscapes.
The evolution of such mobility and financing options coupled with increasing regulatory oversight, operational risk management and consumer expectations are dramatically changing the rules of the road, forcing industry participants to redefine and adapt to their business approaches.
As megatrends converge they have the potential to create a perfect storm that requires careful navigation. As a result, we are now seeing leading auto lenders and dealer groups revisiting their business strategies and seeking ways to prepare for these challenges and embrace related opportunities. PwC, with its broad experience in understanding industry disruption and megatrends, is best placed to assist executives in developing effective business strategies. The following examples demonstrate how PwC assists our clients:
In a world of greater complexity, uncertainty and accelerating change, monitoring and managing risk is a strategic imperative. How an organization monitors, manages and mitigates risk can have direct impacts to the bottom line. We assist our clients with identifying, evaluating, monitoring and responding to the full spectrum of risks in the lending environment including credit risk, market risk, compliance risk, operational risk and reputational risk. The following examples demonstrate how PwC assists our clients:
PwC helps clients understand regulatory developments, comply with regulatory requirements, and establish best practices for managing regulatory risk. Our objective is to work with our clients to minimize the costs and disruptions associated with regulatory compliance while maximizing the competitive and strategic opportunities that exist alongside regulatory change. The following examples demonstrate how PwC assists our clients:
For more information on services, visit PwC’s US Financial services regulatory practice
Finance organizations are asked to respond to ever more complex regulatory, reporting and disclosure requirements in an era of cost containment. Finance leaders are under pressure to quickly operationalize complex standards and develop robust reporting that enables enhanced analysis and decision making. The following examples demonstrate how PwC assists our clients:
For more information on services, visit PwC’s US Audit and assurance services
Consumer finance organizations are facing unprecedented demands and challenges as they strive to meet heightened expectations from customers, investors and regulators while managing costs to generate profitable growth. A successful transformation journey requires a trusted partner who has deep industry knowledge, proven track records in servicing operations and innovative approaches. The following examples demonstrate how PwC assists our clients:
As the software industry pushes towards concepts such as cloud-based services, big data, private-label branding, and rule-based automation, CIOs and CTOs face decisions as to the strategic direction they will take their company's technology. The following examples demonstrate how PwC assists our clients:
Lending institutions are under pressure to understand and respond to the array of emerging regulations developed to create more focus on the customer. Understanding the customer's preferences and addressing their needs efficiently are essential to having a successful customer-centric strategy. PwC can assist in discovering customer insights and turning those insights into actionable intelligence; helping our clients comply with regulatory requirements and also exceeding their customer's expectations. The following examples demonstrate how PwC assists our clients:
For further reading
Consumer Lending Experience Radar 2015
As advisors across the industry, we have developed benchmarking and perspectives on leading practices which we leverage when assisting our clients evaluate acquisitions, divestitures and strategic alliances. Our services span the deal lifecycle from strategy development and target evaluation, through due diligence and execution, to post-acquisition integration. The following examples demonstrate how PwC assists our clients: