Putting borrowers in the driving seat

Introducers need to shift gear now to meet their clients’ needs in the future.

Asset and equipment spending remains strong in spite of rising interest rates and inflation, but there’s no room for complacency. Introducers need to shift gear now to meet their clients’ needs in the future.

Sustainability and customer experience are creating new opportunities for introducers, according to a recent panel discussion at Pepper Money Insights Live in July 2022. And the time to educate yourself is now.

Facilitated by Pepper Money’s Head of Sales Asset Finance Michael McEvoy, the discussion covered the key opportunities for the industry and their impact for the future.

While asset finance borrowers are facing rising interest rates and inflation, the outlook is still positive according to Peter Drennan from data analytics firm Qi Insights. “On the business side, capital expenditure on equipment in the March quarter was at record levels – so it’s never been higher,” he explained.

With a 17% increase in financing for equipment and machinery between July 2021 and March 2022, demand has certainly been strong, with businesses investing in forklifts, trailers and electric cars. Much of this has been driven by government incentives and tax breaks which are likely to increase in the future – especially for electric vehicle (EV) purchases.

The future is electric

Asset finance introducers looking to position themselves ahead of this growing EV demand should take the time to learn about the expanding number of options available – including finance solutions.

In a time of inflation and rising costs, EVs promise fuel savings, less maintenance, and lower servicing costs than petrol driven cars. And with more EV financial incentives on the horizon, consumers are likely to find those savings even more appealing – given the rising cost of fuel as well as interest rates. 

The current issue is one of supply, not demand, as Laurissa Mirabelli from EV marque Polestar Australia explained. She believes that as the government introduces more measures to limit emissions and creates incentives for individuals as well as businesses, the number of EV suppliers to the Australian market will grow. 

“We’re one policy decision away from greater EV uptake,” Laurissa said.

Our research shows 25% of people are ready to buy a new EV. Customers understand their role in the transition to renewables, and are keen to be part of the sustainability ecosystem – including electric vehicles.

For introducers looking to build trust with increasingly sustainability-focused borrowers, it’s never been more important to build your knowledge on these topics.

From dealership to desktop – how we buy cars is changing

As a younger, more tech-savvy generation of buyers enters the market, introducers that can offer a fully integrated digital experience are likely to come out ahead.

Regardless of age, ease of experience is now an essential factor in how customers buy and finance their assets. This raises challenges for introducers, as Ken Spellacy, Pepper Money General Manager for Asset Finance pointed out.

“We all need to think about how we continue to innovate. How do we take away the pain points and make the process of purchasing and financing that asset as simple and streamlined as possible?”

For introducers, Ken says, knowledge and education are the best way to set yourself, and your clients, up to meet the challenges of the future. “The more you can understand what products are available, and how you can use the technology available to you, the more effectively you can explain that to your customer and walk them through that journey.”

And by helping your customers navigate a path to financing their assets in an increasingly complex market, you can position yourself as a trusted adviser and partner for the long term.