Insights & Updates from Finativ

Browse our articles for news and commentary on industry matters from our team of experts
May 14, 2024
FINATIV: INSIGHT

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 […]

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May 13, 2024
Case Study: Driving Operational Excellence in Automotive Leasing

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 […]

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May 7, 2024
Why Don’t All Projects Go to Plan?

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 […]

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May 7, 2024
How to Enter the Renewable Energy Asset Financing Market

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 […]

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May 7, 2024
Uniting Business and IT Through Agile Team Dynamics in Digital Transformation

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 […]

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April 22, 2024
AI: Why Now?  

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 […]

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March 28, 2024
FINATIV: INSIGHT

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 […]

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March 27, 2024
Can UK SMEs Surmount the 2024 Refinancing "Great Wall"?

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 […]

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March 27, 2024
Bridging the Gap Between Business and IT: The Importance of Education and Culture

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 […]

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March 27, 2024
Stay Up to Date with FCA Policy

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 […]

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March 7, 2024
The AI Imperative for Asset Finance

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 […]

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January 3, 2024
FINATIV: INSIGHT

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 […]

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January 2, 2024
Unlocking Operational Efficiencies: Introducing Finativ Focus 

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: […]

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January 2, 2024
Understanding ISO 27001 and SOC 2 as Pillars of Global Data Security

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. […]

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January 2, 2024
2024 Outlook: Industry Experts Weigh In on the Future of SME Lending

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 […]

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January 2, 2024
Revving Up Resilience in Motor Trade Amidst Economic Headwinds

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 […]

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January 2, 2024
Block Funding: Friend or Foe?

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. […]

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January 2, 2024
Calling Invoice Finance Providers: Grow Your Business and Steal a March on Your Competitors

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 […]

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December 12, 2023
The PPU Contribution to ESG

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 […]

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November 20, 2023
The Value of Data in PPU

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 […]

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November 6, 2023
FINATIV: INSIGHT

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 […]

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November 6, 2023
M&A: Where Have All the Deals Gone?

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 […]

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October 31, 2023
Should Trade Finance Be a Standard Offering in an Asset Finance Company's Portfolio?

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 […]

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October 31, 2023
Growth in Demand for Pay-Per-Use Contracts

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 […]

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October 30, 2023
What Gen AI Means Right Now for the Financing Industry

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. […]

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October 30, 2023
Technology & Innovation Forum: Planning for 2024

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 […]

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October 23, 2023
Pay-Per-Use as a Source of Growth and Profitability

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 […]

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August 31, 2023
FINATIV: INSIGHT

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 […]

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August 30, 2023
Facing Business Challenges Head-On: The Proactive Benefits of Restructuring

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 […]

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August 30, 2023
Corporate Finance: Value Creation – Today and On Sale

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 […]

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August 29, 2023
Technology & Innovation Forum Update

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 […]

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August 29, 2023
The Overlooked Benefits of Supporting International Traders

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 […]

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August 29, 2023
"The most important Bill you have never heard of" - Lord Holmes of Richmond

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 […]

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July 18, 2023
FINATIV: INSIGHT

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 […]

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July 17, 2023
Use Rate-for-Risk Finance Models to Increase Business

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 […]

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July 17, 2023
Organisation: The Role of People in Driving Digital Transformation

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 […]

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July 17, 2023
Basel 3.1: The Clock is Ticking for Finance Companies

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 […]

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July 17, 2023
Strategic Software Selection

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. […]

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July 17, 2023
Why Delivering a Successful Chatbot is Harder Than People Think 

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 […]

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July 17, 2023
Barriers To Successful Digital Transformation

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 […]

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July 17, 2023
Key Factors in a Successful Digital Transformation

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 […]

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June 1, 2023
FINATIV: INSIGHT

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 […]

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May 31, 2023
Microservices: The Future of Financial Systems Architecture

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 […]

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May 31, 2023
Navigating the Untapped Potential of Trade Finance

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 […]

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May 31, 2023
Standards for Sustainability: The Role of Finance and the Emergence of BS ISO 32210:2022

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 […]

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May 26, 2023
Embracing Flexibility: The Advantages of Finativ Flex Over Traditional Non-Executive Directors

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, […]

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March 31, 2023
FINATIV: INSIGHT

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 […]

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March 30, 2023
Pumping Up Asset Finance: How Digital "Steroids" Boost Speed and Power

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" […]

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March 30, 2023
Why are We Still Talking About Car Subscription?

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 […]

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March 30, 2023
Navigating the Zone of Uncomfortable Debate: How to Identify Roadblocks in Your Digital Transformation

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, […]

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March 27, 2023
Solar as a Service – Saving Money when the Sun Shines

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 […]

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February 9, 2023
Get Ready for the new FCA Rules for Car Retailers

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 […]

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January 13, 2023
FINATIV: INSIGHT

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 […]

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January 12, 2023
Corporate Finance: Positioning for Value

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 […]

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January 12, 2023
2023: A Golden Year for Invoice Finance?

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 […]

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January 12, 2023
IoT Impacts on the Asset Finance Industry

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 […]

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January 12, 2023
Why the Asset Finance Sector Must Plan for Emissions Reporting

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 […]

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October 28, 2022
FINATIV: INSIGHT

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 […]

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September 20, 2022
Finativ Enhances Proposition with Senior Recruits in Data Strategy and Process Improvement

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 […]

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September 1, 2022
Five Questions You Need to Answer to Make a Success of ISO Certification

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 […]

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August 2, 2022
Finativ deepens motor finance expertise with new hires

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 […]

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