Secure Trust Bank has launched into the digital dealer prime space with V12 Vehicle Finance, sitting alongside its Moneyway brand, and offering a greater reach to customers, Chris Lemmon writes.
Secure Trust Bank has announced its entry into the prime lending market with the launch of its digital dealer proposition – V12 Vehicle Finance, in collaboration with Aston Barclay.
Go deeper with GlobalData
Following a multi-million-pound investment in digital channels, V12 Vehicle Finance will extend beyond Secure Trust Bank’s core presence in the near-prime market with two additional products: the first is the extension into the prime market, and the second is a wholesale funding solution in conjunction with Aston Barclay.
“All the business we write now is just outside the prime environment,” explains David Nield, chief operating officer for Secure Trust Bank. “By incorporating the prime proposition with the existing near-prime services, we will be able to offer our dealers one of the broadest retail finance propositions in the marketplace.”
Secure Trust Bank says it has identified a significant opportunity in the market, and with the launch of V12 Vehicle Finance is looking to triple its presence over the next three to five years – in excess of £1bn.
New Platform
The new V12 platform, featuring wholesale finance, stock source, retail funding and service financing, has been designed for dealers to source and fund vehicles through various physical and digital auction channels. Dealers will also have access to Aston Barclay’s e-Valuate vehicle appraisal solution and the e-Xchange stock sourcing portal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHire purchase with prime and near-prime ratings will be available to customers, with advances of up to £50,000 and £20,000 respectively. The business will also be bringing a personal contract purchase (PCP) product to market. David Mercer, managing director of the new business, says that “without a PCP model, we would not be able to engage and drive activity on a large scale.
“Our decisioning platform will enable a customer to be proposed as a prime customer. If they fall out of prime, they will automatically be put into the near-prime ratecard, without the dealer having to find another funder to take that second proposal to.”
The wholesale funding proposition, named Aston Barclay Stock Funding, will enable 100% of the purchase invoice to be funded; this includes buyer, online and transport fees, smart repair and Aston Barclay Assured.
The offering completes Aston Barclay’s vision of a digital-first remarketing service. Buyers will be able to digitally search, bid on and fund their used vehicle stock via their Buyer’s app or desktop.
The launch of the stock funding product came in response to an Aston Barclay survey in 2018, which revealed that 27% of buyers wanted a ‘funding solution provided by a banking partner’. Buyers specifically asked for a ‘fast and efficient funding service’ and that ‘access to credit was an important tool in facing up to their business challenges’.
Mercer says the company is focused on building a unique proposition for used car and van dealers yet to be seen in the UK market. “Secure Trust Bank has built a strong heritage in the vehicle finance sector with Moneyway, and is keen to invest in new products to further grow the business,” he explains.
For the last 10 years, Secure Trust Bank has been trading in the near-subprime retail finance market under the name Moneyway. In 2017, the company took the decision to move the business away from the subprime sector. Following the launch of V12, the Moneyway brand will run concurrently with V12 for the next 12 months, before being absorbed within the V12 Vehicle Finance brand in 2020.
“V12 Vehicle Finance is a like-minded business with a focus on establishing a unique digital buying and funding journey for dealer buyers,” says Aston Barclay group chief executive Neil Hodson. “It’s a perfect fit for a strategic partnership.
“We already have a great relationship with the senior management team, and V12 Vehicle Finance is using a best-in-class platform that will make all elements of the dealer stocking funding journey fast and efficient,” Hodson concludes.
