As it grows its monthly
lending total to more than double that of a year ago, independent
lender Duncton has assumed a new identity – and a lot of owl
imagery – in a bid to change the way consumers approach subprime
finance. Fred Crawley reports.
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As of this month,
West Sussex-based finance house Duncton will be known as Moneybarn,
in a move designed to create a more consumer-friendly brand for the
company.
Long known as a keen subprime
funder with an asset-focused risk policy, Duncton took on the new
name as the latest phase in a growth drive that began with the
acquisition of more than £150m in funding from Octopus Investments
in the fourth quarter of 2010.
Since securing this facility,
lending volume has increased every month, with July’s total
standing at 215% of the figure advanced in November
2010.
According to sales and
marketing director Shamus Hodgson, similar volume increases are set
to follow.
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By GlobalDataMoneybarn’s eventual aim is
to take a place alongside the country’s larger mainstream finance
providers, by expanding to fill the “subprime gap” that has existed
in the market since the departure of a cluster of lenders following
the economic turmoil of 2008.
Yet aside from bringing more
funding into the subprime market – which Hodgson considers to be
worth considerably more than £1bn a year and growing – the
company’s plan includes taking on marketing and service provision
strategies that emphasise acceptance of the non-prime finance model
by consumers.
Hodgson said: “We want to
bring ourselves, not to mention the whole non-prime market, into
the mainstream.
“The economy is worsening,
and more people are falling outside the prime space.
“Our view is that this should
not change the customer experience at all – the only thing that
should change is APR to reflect credit risk.
“A big problem with selling non-prime car finance is
that many customers feel somehow relegated or second best, and this
doesn’t need to be the case if they are given a prime level of
engagement and service.”
The issue of engagement is
where Moneybarn’s new visual identity – centred around a stylised
owl mascot by the name of Barney – comes into play.
Hodgson added: “We have
developed a consumer-focused brand for an intermediated
market.
“We want to work with brokers
and dealers in terms of PR and joint branding, and part of that is
increasing customer awareness of the moneybarn brand both online
and at the point of sale.”
While Moneybarn’s sales focus
remains firmly on introductions from brokers and a growing number
of larger dealer groups, the consumer appeal of the new brand and
the exposure that is planned for it is likely to generate an
increase in direct sales for the company.
As well as featuring a
prominent interface for online finance applications with
simple-to-use sliders and tick boxes, the company’s new website
includes a live chat feature of the kind being used increasingly by
dealer groups.
The chat feature was tested
Motor Finance was answered promptly and knowledgeably by a
member of staff.
With a second office site being developed, in addition to
the company’s eponymous barn, as well as the development of an IT-
and operations-heavy staff structure designed to cater for
expansion, the clear message from Moneybarn on the year to come is
one of determined growth.
