In this exclusive interview, we sit down with Jennifer Zimmermann, Head of Business Development at Bank11, to gain valuable insights into the future of financial institutions in the evolving mobility ecosystem.
How do you envision the evolution of financial institutions within the future mobility ecosystem? How quickly do you expect this evolution to unfold?
Financial institutions will maintain their central role within this future mobility ecosystem. There will always be assets that need to be (interim) financed – by the customer or by the manufacturer, importer, dealer, rental company or subscription provider. The market position of captive banks is therefore strengthened by the ‘agency model’ in the German market, which various manufacturers have already implemented or are planning to implement in the near future.
One important aspect within the evolution is the ongoing change of distribution channels. The classic purchase at the point of sale will endure. Nevertheless, there are many new sales opportunities and customer touchpoints to be taken into account. In fact, many customers are already willing to buy their vehicles online without setting foot in a dealership, or directly from the manufacturer. In this day and age it is even possible to purchase vehicles in electronics stores like Euronics or Mediamarkt, or online platforms such as Amazon. In addition, customer behavior is ever-changing. Many customers no longer want to own a car, but want access to it. This is why there is a growing market for leasing and subscription models.
So, as you can see, the market is very dynamic. Financial institutions must adapt to market changes and new trends very quickly and must keep one thing in mind: Simplicity is key!
In the future, it will be increasingly important for financial institutions to set up their products and IT infrastructure in such a way that they can be seamlessly integrated into the customer journey of third parties – if necessary also as white label solutions (embedded finance).
