Admiral Financial Services made its entry into the direct-to-consumer car finance market in early 2018. Motor Finance caught up with CEO Scott Cargill to find out how the business has progressed since then.
Motor Finance: It has been a year since Admiral entered the direct-to-consumer car finance market. What has the industry been like to join?
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Scott Cargill: We’ve joined the industry at a time of significant change, driven by several factors including the growth in direct-to-consumer car finance, a significant FCA investigation and the changing dynamics of car sales distribution.
MF: Has anything surprised you since launching?
SC: The pace of change in the car finance market over the last 12 months in the market has been a surprise. The rapid prominence of brokers and aggregators offering car finance provides more choice to consumers, making it easier to make their finance decisions away from the showroom.
MF: What challenges have you faced as an insurer joining the market?
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By GlobalDataSC: The Admiral brand is well known to consumers as being a provider of insurance products. We’ve worked hard to raise the profile of Admiral Financial Services and our range of motor finance products among consumers.
I think we’ve actually benefited from Admiral’s heritage and insight into customer needs, and this has helped us overcome many of the challenges usually faced by a new entrant, such as lack of awareness.
We’ve also built a team here that’s a blend of experience in the direct-to-consumer and traditional car finance industries.
MF: How have your various products performed since launch?
SC: Despite a 2% drop in used car sales in 2018, we’ve met all of our budgets across secured and non-secured car finance products.
MF: How has Admiral developed its motor finance product over the past year, and what plans do you have for the future?
SC: We continuously hone our online journey to enable the customer to choose the product that’s right for them. Our PCP product is increasingly popular with consumers, and we plan to continue to innovate across all of our products.
MF: Do you think growth in the motor finance market will drive new entrants from other sectors?
SC: I think it’s likely that the car finance market will change, fuelled by increasing demands from customers and legislation. I’d expect a range of new entrants, and would welcome them to improve customer outcomes.
MF: What strategic aims did Admiral have by teaming up with Experian for the online comparison tool?
SC: Admiral’s always been at the forefront of the price-comparison industry in terms of insurance, so it made sense for us to lead from the front in the car finance market too.
Companies like Experian want to provide customers with products and services that add value to their lives; we want to help to play a part in that by sharing our expertise and learnings from customers.
MF: Do you think we will see a more digital approach to car financing be introduced in the future?
SC: The digital revolution started some time ago. Brokers like Car Finance 247 have invested heavily in digital marketing and experience over the last few years, and that pace of growth seems to be increasing with big names like Experian and Money Supermarket coming on board.
We’re exploring all channels, including YouTube and Facebook. The joy of digital is the ability to target your audience and measure more effectively.
