Several key staff from
mothballed subprime lender British Credit Trust have regrouped to
form a new car finance broker, Just Motor Finance. Fred Crawley
reports.
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Based in High Wycombe, Just
was formed in August, with Tamsin Powell, Ray Parkinson, Tony
Ordish and Jon Guthrie, all ex-British Credit Trust management, as
directors.
The company, which estimates
the subprime market to be worth £1bn a year – or 160,000 units –
already has a lender panel in place, and claims strong online
capability and automated process management as
strengths.
While it will operate using a
dealer-led model, the company hopes to begin taking direct consumer
finance applications through its website early next
year.
According to managing and
operations director Powell, former operations director at BCT, the
aim in the broker’s first year is to introduce around £750,000 of
business a month, with double that volume planned for year
two.
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By GlobalDataParkinson, risk and
compliance director at Just and former head of risk and compliance
at BCT, names “identifying the right rate for risk and reward
balance for deals” as a key skill for the new brokerage.
This, alongside meeting “the
demands of the regulatory environment, the needs of the consumer
and the expectations of funding partners.”
Guthrie, IT director and
former IT and risk director at BCT, commented on the new broker’s
technology.
“We are bringing the
disciplines that made our technology stand out when we were
lenders,” he said. “Multi-purpose scorecards, rigorous analytics
and configurable decision trees, to the non-prime
market.”
Ordish, sales and marketing
director, described the gap in the market that Just hopes to
exploit in 2012 and beyond.
“There has been a significant
gap in the ‘rate for risk’ sector since 2008,” he added.
“Many of the brokers that
used to be active there have either evaporated or, by way of
necessity, have had to reduce resources dramatically and refocus
their business models to niche and prime lending.
“As a consequence, with a few
exceptions, the best of the specialist deal-making skill set has
moved on or been lost.
“The prime brokers that once
participated in ‘rate for risk’ as ‘value added’ services for their
dealer partners before 2008 have also released those skill
sets.”
BCT, a landmark name in subprime motor finance before the
financial crisis, officially ceased lending in November 2010, at
which point it outsourced all customer services and collections to
Target Loan Services Ltd.
