The Request for Proposal has been the backbone of technology selection in specialty finance for decades. It promises rigour, comparability and an audit trail. Yet ask the people who run these processes today, on either side of the table, and a consensus emerges quickly: the traditional RFP is broken. What is less obvious is what […]
AI governance has moved out of the IT function. The question for boards is no longer whether to engage with artificial intelligence, but whether they can afford the cost of continuing to delegate it. The Governance Gap Is Widening Current data shows AI oversight remains a minority practice in major corporate boards. Glass Lewis research, […]
In our previous articles in this series, we explored the distinct challenges that asset finance providers face across the proposal-to-payout journey: the technology infrastructure barriers that slow credit decisions, the data quality issues that delay funds release, and the integrated systems, process, and people approach required for sustainable improvement. This fourth instalment turns to a […]
Asset finance providers seeking competitive advantage in the prop-to-payout journey often search for single solutions to complex challenges. The reality is more nuanced: sustainable improvement requires coordinated action across systems, processes, and people. Whilst technology investment addresses infrastructure barriers and process standardisation tackles data quality issues, neither delivers full value without clear accountability and transparent […]
As asset finance firms navigate an increasingly technology-driven landscape, AI presents both opportunities and risks. Success depends not on wholesale adoption, but on deploying AI strategically, with robust controls and clear measurement, to address genuine operational challenges. AI solutions are appearing in ever-increasing numbers across the asset finance technology stack – in proposal submission/receipt, documentation, […]
At the recent Finance Connect conference, colleagues from the receivables finance sector gathered to discuss the current state of RF and its direction for the future. Having participated as a facilitator for a couple of the sessions, our expert, Richard Carter, believes there are some key takeaways that warrant careful consideration, not just about where […]
The British Business Bank’s Enable schemes offer support for finance companies lending to SMEs, either by providing a guarantee for a portion of the credit loss the funder may suffer, or by providing access to institutional investors. The Enable Guarantee provided to finance companies offers the potential for enhanced risk management, improved capital efficiency (driving […]
In a market defined by margin pressure, shifting regulation, evolving customer expectations, and rapidly advancing technology, financial services firms face difficult decisions when evaluating acquisitions or major investments. Traditional commercial due diligence has long formed part of that decision-making process, but the expectations placed on advisors are changing. Firms increasingly need insight that goes well […]
We recently carried out a benchmarking survey of the service standards of asset finance lenders serving the broker market. The 20 responses we received represented 18% of the broker market, providing a valuable snapshot from some of the largest and most important brokers in the market. Relationships Matter Less, Relationship Management Is Essential One of […]
Independent SME lenders are navigating one of the most complex funding environments in a decade. Bank credit continues to tighten, government-backed schemes are evolving, and private credit, despite booming elsewhere, has yet to fully reach the SME ecosystem. Against this backdrop, the sustainability and diversity of wholesale funding is becoming a strategic priority for lenders […]
Executive Summary Following our examination of speed to decision challenges, the payout phase represents an equally critical bottleneck in the proposal-to-payout journey. Recent industry discussions reveal that data quality issues have emerged as the primary obstacle to payout acceleration, with incomplete or inconsistent documentation causing delays that frustrate customers, dealers, and brokers at the final […]
Executive summary Asset finance providers face a critical tension: everyone recognises that speed to decision matters, yet half remain held back by inadequate technology infrastructure. This isn't a minor operational concern; delays in credit decisions translate directly to lost business. Customers seeking asset finance increasingly expect rapid responses, and brokers route business to providers who […]
Whether you’re bank-owned and funded internally, or independent and funded through block discounting, securitisations or structured lending facilities, finance is not back office. In debt-reliant businesses, finance is the control tower that keeps capital flowing. When it is underbuilt, funding becomes slower and more expensive, covenants and triggers get breached, and management is forced into […]
What the PEAC/Topi, PEAC/ABN AMRO UK Leasing, and Shawbrook/ThinCats deals signal Deal flow has returned to the asset and specialty finance market. Over just a few days, three headline transactions have crystallised the themes many in the sector have anticipated for months: scale, technology enablement, and bank carve-outs into specialist platforms. 27 August 2025: PEAC […]
Over the summer period, we carried out a benchmarking study, asking leading brokers about the quality standards of the funders they use. Results were collated to provide a ranking of 17 funders across six key areas – deal shaping, speed of decision, document execution, speed of payout, overall service quality and broker relationship management. The […]
March 2025 With the clocks about to change and warmer spring weather ahead, now is a time for activity and optimism, and there’s a lot going on. In this edition of Insight, we highlight the strengthening of our corporate finance proposition, the growing attraction of private capital, a comprehensive Scope 3 reporting solution, options for […]
October 2024 It’s early days … but M&A is back! In this edition of Insight, we highlight some of the reasons for this trend and their implications. We reflect on the recently released Basel 3.1 near-final rules and the remaining uncertainty for capital-constrained SME lenders. With budget rounds in full swing, we discuss the importance […]
After a long period of inactivity, the UK's mergers and acquisitions market is starting to show signs of life. Over recent years, deal-making slowed down significantly, affected by economic challenges and global uncertainties. But as we move into the latter half of 2024, the situation is changing. Portfolios are starting to appear on the market—often […]
For many companies, now is the time for budget planning. One of the most significant budget lines is technology; however, this can often lead to a frantic rush to identify necessary developments for the coming year. Equally challenging is estimating costs and assessing the realistic benefits these developments will deliver. The Risks Of A Hasty […]
Some of the press headlines following the PRA announcement of Basel 3.1 near-final rules suggest that the changes are benign and straightforward, with largely unchanged capital requirements. If only life were that simple! Specifically thinking about the asset finance market, it was announced that for standardised banks, the feared removal of the SME Support Factor […]
You are well into a large-scale, long-term project and as the next steering committee meeting approaches, you’re reviewing the RAG status. There are no red lights, a few amber, but that’s only to be expected. The majority are green, so there’s nothing to worry about. Yes, the timeline on a project of this nature is […]
“Adopting environmentally friendly practices such as incorporating electric vehicles, investing in renewable energy, and implementing sustainable manufacturing processes are essential steps towards reducing the auto sector’s carbon footprint.” ESG is increasingly important to automotive as the industry becomes more sustainable, but dealer networks face a range of practical challenges to meet the latest requirements. Corporate […]
July 2024 The latest edition of Insight highlights a range of challenges facing finance companies, with options and solutions explored. One of the biggest challenges for finance companies renewing their contract management system is migrating legacy portfolios. Simon Harris outlines the requirements for success as well as the benefits of other available options. Simon also shares […]
As the world pivots towards a more sustainable future, investments in green and renewable assets have surged. These assets, including wind farms, solar, BESS, biomass, biogas and other renewable energy projects, promise substantial environmental and economic benefits. However, they also bring unique challenges and risks that necessitate careful consideration, particularly in terms of insurance. For […]
In the 18 months since we started our Technology & Innovation Forum, we have seen our membership quadruple, with 85 participants representing more than 50 asset and automotive financial services businesses. In some respects, we find ourselves returning to familiar, key topics - data, microservices, agile development – even revisiting the most recent developments, such […]
Trade credit insurance is seldom used in asset finance (more so in invoice finance) but can play a valuable role by facilitating increased sales, reduced capital requirements and higher profitability, as well as mitigating downside risk either on a single large transaction (or customer) or at a portfolio level. Here are some ways you could […]
Don't Underestimate the Challenges Facing Invoice Finance Providers in the Implementation of Digitisation Commoditising invoice finance through digitisation is considered by many as the "Holy Grail" of factoring and invoice discounting. But what can its impact truly be on a financial product that has historically been relationship and service-driven? In this article, we'll explore how […]
We all know that selecting and deploying a contract management system (CMS) for your finance business is most likely going to be a long, and at times painful, undertaking. Whilst many vendors are working hard to improve and accelerate the implementation process, by its very nature it is difficult to find short cuts: many tasks […]
Imagine being trapped in a hall of mirrors, seeing only your own reflection ad infinitum. That's the reality for many businesses today - stuck in echo chambers of their own making. But what if you could smash those mirrors and glimpse a world beyond? This is akin to bringing in new people who can share […]
May 2024 Welcome to the latest edition of Finativ Insight. We open this issue with a case study showcasing how a leading automotive leasing broker drives operational excellence with Finativ Focus's help. They have achieved impressive results by optimising deal flow and customer service without increasing costs, including immediate capacity increases, enhanced customer satisfaction, and […]
In an era of rapid growth and fierce competition, operational efficiency is key to success for businesses across sectors. This is particularly true in the automotive leasing industry, where streamlining processes and enhancing customer service can make all the difference. One leading automotive leasing broker recently grappled with these challenges as exponential organic growth put […]
Whether we are looking at the news, or receiving a business update, we hear constant talk of issues with projects – delays to airport projects, cancellation of rail projects, overspend on infrastructure, bugs in new software. Within the finance services sector, in our daily lives, we are, I am sure, all uncomfortably familiar with projects […]
Recently, we’ve spoken with a number of funders looking to enter the renewable energy financing market, or to significantly grow their existing limited offering in this space. The rationale for their decision is twofold and compelling – firstly, it’s a rapidly growing economic sector that offers strong opportunities and higher profitability for finance companies; and […]
Previously, in this series, looking at some of the common themes emerging from the Technology & Innovation Forum, we addressed the topic of education and identified a dependency on company culture. This article will consider the critical role of Agile Teams in bringing IT and business together to effect digital transformation and positively impact business […]
How to Get Started With Minimum Risk With the latest advances, it is now clear that AI is very much in the mainstream. Many of us are using AI embedded in our desktop and mobile apps for everyday tasks, and we can see that leveraging the same technology in our business applications can provide game-changing […]
March 2024 “Create new revenue streams, outflank competitors and redefine customer experiences” are just some of the potential benefits of generative AI. In this edition of Insight, Simon Potts’ article highlights areas for review and development and points towards our AI Readiness Assessment and creating your organisation’s own AI vision. Christian Roelofs pinpoints the challenges […]
I recently attended a session on global insolvencies and was confronted with a startling projection: the UK's SME debt refinancing requirements in 2024 tower over those of any other country, forming a seemingly insurmountable "Great Wall." This alarming visual underscores the immense challenges UK businesses face in the coming years as they navigate a landscape […]
As we approach the first anniversary of launching the online, (and now monthly) format of the Technology & Innovation Forum, a review of our previous content has revealed several recurring themes. While the topics addressed - Organisational Structure, Data, Microservices, and AI - were deliberately chosen based on member requests, the summaries, conclusions, and recommendations […]
Discretionary commission is a hot topic for the financial regulator. Make sure you don’t fall foul of the new review into past practices. At a time when the car industry is settling back into more normal times, with new car production returning to pre-COVID levels, another bombshell has been dropped. On 11 January 2024, the […]
For forward-thinking asset finance companies, generative AI is rapidly shifting from futuristic possibility to strategic imperative. While the disruptive potential of technologies like generative AI and traditional machine learning is undeniable, realising a true competitive edge requires thoughtfully charting the path ahead. The generative AI wave is already starting to reshape the industry landscape. Early […]
In our previous articles, we have seen how PPU can improve retention and grant access to new customer segments; understood the importance and value of the data opportunities provided by PPU; and learned that PPU can contribute towards tangible demonstration of a business’s ESG credentials. What’s not to like? Why are we not seeing faster […]
January 2024 2024 – a new year and new opportunities. In this edition of Insight, we highlight the step-change performance potential in supply chain finance and BNPL. Following a successful engagement in Q4, we introduce a new product - 'Finativ Focus' – a high-speed, low-risk way to drive capacity and productivity gains, with costs aligned […]
Navigate the Complex Landscape of Financial Growth and Efficiency In financial services, a challenging dichotomy exists: the aspiration for growth is often at odds with the limitations of existing resources and operational frameworks. This complex landscape demands a solution that can bridge the gap between expansion ambitions and the reality of operational constraints. Finativ Focus: […]
George Bernard Shaw was quoted in 1942 as saying, "England and America are two countries separated by the same language." Much the same can be said about standards. The International Standards Organisation (ISO) created ISO 216, an international standard for paper sizes, used around the world except in North America and parts of Latin America. […]
The start of the new year is a time when people often think about the year ahead. This year, I decided to ask a few industry friends for their thoughts on major trends and events that will help shape SME lending in 2024. Below are our combined observations - my sincere thanks go to Ylva […]
The motor trade has been through a rollercoaster of recent events, from Brexit to the pandemic and beyond. While these events have shaken many businesses, motor retailers have shown a surprising level of resilience. The spike in used-car profits helped many bounce back quickly despite the new challenges that came thick and fast. Now, as […]
Non-bank asset finance companies in the UK are almost entirely reliant on Block Funding (Block) for the liquidity they need to trade. Some see this as a strength in that Block is relatively simple, is not a banking product thrust upon us, and has been a staple source of funding for the last 10+ years. […]
It's time for finance companies to review the opportunities for growth and risk mitigation to be had in shifting to Irrevocable Payment Undertakings (IPUs) in supply chain finance and commercial 'Buy Now Pay Later' (BNPL). In the August edition of Insight, I wrote about the game-changing Electronic Trade Data Act (ETDA) and its potential impact […]
Article published in association with FIS How might PPU be seen as sustainable? The primary selling proposition of a Pay-per-Use product is that the end-customer pays only for their use of the asset, thereby focusing their attention on how much that usage costs them, with the financier/owner retaining their own focus on asset cost and […]
Article published in association with FIS As the name “pay per use” implies, the product offers the end customer the prospect of only paying for what they need from a vehicle rather than paying for it regardless of whether or not they use it. This calculation can be a little uncomfortable for the average private […]
November 2023 As we move into the latter part of the year, it’s right to think about 2024 and the opportunities that it will bring. THE hot topic right now is AI and in Simon Potts, we’re lucky to have someone in the team who’s been a global leader in this field. His article is full […]
With such a focus on growth over the last 12 months across the industry, and that growth not necessarily coming from the market, you would have expected more to have happened on the M&A front. However, taking a step back, there are a number of key reasons for this and some interesting alternative approaches that […]
In the past few Finativ newsletters, I have highlighted an issue that has largely gone unnoticed in the finance sector - a formidable funding gap for businesses. It's reported that, pre-COVID, smaller businesses in the UK faced a £56 billion trade finance shortfall, a void which has potentially widened in the aftermath of the pandemic. On […]
After a lengthy period of much talk and little action, over recent months we have seen a material uplift in interest from finance companies and, indirectly, from OEMs in pay-per-use (PPU) funding structures for the asset finance market. The proposition for all stakeholders appears to be getting clearer and there are material developments in the […]
It has been impossible to avoid the buzz surrounding Gen AI. Nearly a quarter of all articles from the global consultancies, IT industry and our own sector are extolling the potential of Gen AI, explaining how it has been created, how it can be used, and how it will change the way we all work. […]
As with any business, activities planned for the start of the next year are largely in place in the final quarter of the previous year. And as the Technology & Innovation Forum approaches and soon passes its first birthday, it seems only appropriate to start 2024 with a face-to-face meeting. People Want to Get Together […]
We can see it, we’re just not sure how we can get there In common with many futuristic business models, it is relatively easy to imagine some vague point in the future when more and more consumers will enjoy the flexibility offered by automotive subscriptions: swapping vehicles more regularly, as and when needed according to […]
September 2023 In this latest edition of “Insight” we highlight the hidden yet substantial benefits of supporting internationally trading businesses, while explaining how the newly passed Electronic Trade Documentation Act creates significant opportunities for early-adopting finance providers in an already underserved market. For businesses feeling the pressure of commercial challenges, we dig into the benefits […]
Every business experiences highs and lows. These inevitable challenges might stem from a deteriorating liquidity position, loss of market profitability or growth in bad debts. And while the term 'restructuring' might sound daunting, it doesn't always translate to a crisis. Instead, it can be a proactive strategy to navigate through these challenges and steer your […]
The term ‘due diligence’ or DD, as it is often shortened to (somewhat ironic for a process that is rarely short), often strikes fear into business owners and management teams alike. Having hordes of external advisors combing through details of what feels like every transaction a company has ever made, looking for errors, can be […]
After launching the online Technology & Innovation Forum at the start of the year and, having tried a few different agendas and formats, as well as investing in some bespoke software to facilitate our activities, Finativ took the opportunity of the extended summer break between sessions to review our endeavours to date. We had individual […]
In our previous article, we discussed the major funding gap faced by UK businesses engaged in international trade and called on financial institutions to view this as an opportunity. There are compelling reasons why focusing on international traders can benefit banks. Research by major banks has revealed that businesses trading internationally generate significantly higher income […]
On 20th July, The Electronic Trade Document Act was passed in the UK. It allows any electronic trade documents that can function like paper to be treated like paper. So why is the trade finance industry so excited by the adoption of the UNCITRAL Modern Law on Electronic Transferable Records in the UK and soon […]
July 2023 Generative AI (creating human-like content) is really taking off. In a recent study, PWC determined that almost 30% of UK financial services jobs could be replaced by automation by 2030, offering big gains in productivity and customer experience. Drawing on the first-hand experience of Simon Potts, the newest member of our team, we […]
As companies look to reinvigorate used car financing, it’s time for a more personal approach to interest rates based on individual circumstances With the running costs of operating dealerships increasing in the last 18 months, retailers are focused on improving profit centres. One method that’s propped up revenue has been income from finance agreements. New […]
There are very few businesses in the financial services sector which would not profess to be in some way undergoing a digital transformation. The challenges are, how successful are they in their endeavours, and how far are they in their journey? To provide context against which to measure their own progress, participants in the most […]
Background While we await the outcome of the PRA’s recent consultation period, the clock is ticking on the implementation of Basel 3.1 which will dictate the regulatory capital requirements for banks from January 2025. Implications will ripple disruptively through commercial finance markets, impacting the profitability of not just bank-owned lenders but also intermediary lenders who […]
Choosing the right set of software applications for the long-term future of the business can unlock huge untapped value, far beyond the direct project and software cost. Finance companies live and breathe software. Many companies rely on software of course, but for financing, it’s what makes the business possible and where its intellectual property resides. […]
We are now all used to being able to find information, get help and possibly process transactions using chatbots. However, even with the current hype around ChatGPT and other advanced generative AI-based chatbots, why does it remain so difficult to deliver even a basic chatbot successfully? Business Benefits of Chatbots Chatbots have the potential to deliver […]
In today's fast-paced, digital-centric era, digital transformation is becoming vital for businesses to stay relevant, and competitive. However, it's not simply about trading old systems for new ones; it's a complex and often daunting endeavour involving organisational change, innovative strategies, and the adoption of next-generation technologies. The rewards of success can be vast, from increased […]
It is now becoming obvious that to maintain a market position, enterprises must be able to deliver their products or services digitally. In consumer markets, the adoption of digital practices is well-established. While B2B markets have typically lagged behind, expectations have shifted, with clients expecting to start their research and transaction online. And, in many […]
June 2023 In this newsletter, we focus on four areas to drive value for finance providers. To develop a coherent ESG strategy, the new ISO standard 32210 provides a structured, holistic methodology. For finance companies seeking growth, Trade Finance (and its simplification) presents new opportunities. For those seeking expertise, see how our new advisory product […]
In the continually evolving landscape of technology, microservices have emerged as a potential game-changer in the world of finance. Their promise: a shift away from cumbersome legacy systems, increased flexibility, and an accelerated time-to-market. Yet, as with all promising advancements, it's not all plain sailing. This article delves into the practicalities and challenges of adopting […]
Behind the headlines about inflation and interest rate hikes is an issue that has largely gone unnoticed in the finance sector - a formidable funding gap for businesses. It's reported that pre-COVID, smaller businesses in the UK faced a £56 billion shortfall, a void which has potentially widened in the aftermath of the pandemic. On […]
The world today grapples with a series of existential crises: climate change, ecosystem degradation, escalating poverty, and relentless water stress. With a swelling global population predicted to hit 9.7 billion by 2050, we are at an inflection point. The consequences of increased consumption and pollution are becoming ever more evident and pressing. This article highlights […]
In today's rapidly changing business landscape, flexibility is key. This is particularly true in the financial services industry, where businesses must navigate complex regulations, shifting market conditions, and emerging technologies. To meet these challenges head-on, many companies turn to non-executive directors (NEDs) for strategic advice and guidance. A non-executive director can provide valuable guidance, expertise, […]
April 2023 Since our launch 10 months ago, at its heart, Finativ has always been about the progressive, practical application of good ideas. This newsletter highlights some of those: a new service that provides on-demand expertise to clients; the development of an innovative pay-per-use funding programme; and, the first of its kind, the development of a […]
Businesses across industries are constantly seeking ways to gain an edge over competitors and improve their bottom line. In the world of sports, athletes are always looking for performance-enhancing improvements, with some turning to steroids to increase their strength, power, and speed. In the business world, digital strategies can serve as the equivalent of "steroids" […]
The concept of car subscription has been a recurring topic in online and offline discussions among industry insiders. Companies such as Porsche Passport and Care by Volvo have received considerable attention, no doubt driven by their effective PR campaigns. However, despite the product being available for over four years, subscription models have yet to generate […]
Digital transformation has become a buzzword in today's business world, and for good reason. Organisations must embrace new technologies and digital strategies to remain competitive and relevant. However, achieving a successful digital transformation can be complex and involves much more than just implementing new technologies; it requires a deep understanding of the organisation's culture, processes, […]
The combination of Internet of Things (IoT) technology and the availability of natural energy resources offers a new twist in the development of Pay-Per-Use (PPU) solutions. One of the key challenges facing finance companies when they consider offering a PPU funding solution is the risk that the customer does not use the equipment as much […]
Businesses need to be prepared for the FCA’s new Consumer Principle rules. But don’t be daunted because they can help you to retain customers By Peter Cottle | Originally published in the IMI MotorPro magazine In July earlier this year, the Financial Conduct Authority (FCA) announced the final details of a new Consumer Principle that […]
January 2023 Our latest newsletter covers four substantive issues facing business leaders in the finance industry: If there's anything that you'd value some external advice on or need some specialist resources for, please get in touch. Corporate Finance: Positioning for Value As a seller/borrower in any corporate finance transaction, some key drivers of value for […]
As a seller/borrower in any corporate finance transaction, some key drivers of value for you that are often not prioritised are: know your buyer/funder, prepare the story, and manage the process. Too often, the emphasis is solely on the financial performance and positioning the business using a template and then negotiating the best price. While […]
For asset finance providers, invoice finance represents an opportunity to invest in a familiar but countercyclical market. Whereas many businesses in asset finance will see 2023 as a year of lower demand, the opposite is true in the invoice finance market, especially for non-bank players. In a downturn, working capital is at a premium, resulting […]
The internet of things (IoT) is not a new concept, but its growing proliferation means that it will become increasingly important for finance providers. The use of internet-enabled sensors embedded in the physical world of machinery, vehicles and across working environments (think smart offices and smart factories, for example) will quietly and, in some cases, radically […]
As the world progresses towards a more sustainable future, businesses in the asset finance sector must be thinking about emissions reporting. As part of the broader sustainability agenda, emissions reporting is a form of non-financial reporting that is gaining relevance for businesses of all sizes, and particularly those in the financial sector because of the […]
October 2022 These are indeed interesting times, combining challenging economic conditions with an ongoing stream of commercial and corporate opportunities. Five months since the birth of Finativ, our first newsletter reflects that mix. Read about renewables financing, an emerging lending market with its fair share of challenges but also with significant potential and increasingly important […]
As the economic outlook drives increased pressure on finance companies to improve productivity and make the best decisions, specialist consulting and advisory firm Finativ has announced the appointment of two new consulting directors, Kevin Davies and Mark Stoddart. With over 20 years’ experience providing data strategy consultancy, Kevin Davies has held global and European […]
ISO 9001 certification is a well-trodden path, with over one million organisations in over 170 countries having completed the journey. It can be used by any organisation, large or small, regardless of its field of activity. ISO 9001 sets out the criteria for a quality management system, which is a framework for continuously improving the […]
As part of our continued growth into the motor finance sector, Finativ today announces the appointment of Simon Harris as Consulting Director. After nearly thirty years of operational automotive and captive financial services experience, including Lloyds Bank, Daimler and Allianz, Harris has spent the last five years in consultancy and advisory roles for a number […]