From the automotive fintechs disrupting traditional motor finance, to the opportunity to build relationships with emerging mobility service providers that are likely to need support in processing large volumes of mobility-related payments, the future of mobility presents significant opportunities for the Banking sector.
Click on each of the sections below to understand how emerging mobility trends could impact the Banking sector in the near, medium and long-term future.
Deal services for increased volume of mobility acquisitions: Banks will have the opportunity to support their clients in financing and executing an acceleration in deal flow relating to companies acquiring mobility capabilities.
Innovation funds and investment in disruptive mobility initiatives: Innovation funds can be created by banks in order to encourage and further develop fintechs working in the mobility space.
Automotive fintechs disrupting point-of-sale motor finance: New fintechs and finance aggregation platforms are expected to increasingly challenge existing point of sale (dealer) financing channels, which are perceived by many consumers as lacking in transparency and convenience. There is an opportunity for banks to engage with these either as a funder or a potential equity investor.
Financing for Electric Vehicle (EV) corporate fleet transitions: As corporate fleets transition to electric vehicles, there will be a significant demand for asset financing products that help them spread the cost of transitioning fleets and charging infrastructure for electric vehicles.
Finance companies expected to increasingly offer bundled propositions: These will integrate vehicle provision alongside fleet services, payments for transactions, charge point access and parking, as a one-stop shop for consumers and businesses. This is expected to drive partnership and alliance activity between these organisations and respective suppliers.
Merchant acquiring for emerging mobility platforms: Banks could stand to gain significant transaction volume by building relationships with emerging mobility service providers that are likely to need support processing a large volume of consumer payments relating to mobility.
Counterparty risk for outdated business models: As sectors within the mobility ecosystem become disrupted, financial institutions will need to re-evaluate the risk profile of their lending counterparties, making difficult decisions to allocate future capital in the face of uncertainty.
Mobility fleet securitisation: The rise of large autonomous fleets in the future suggests that one method of funding the vehicles would be securitisation over the assets or future revenue streams. These could be owned by consumers and institutions as an investment class.