Opportunities and threats facing financial services providers in the mobility revolution

18/03/2024 Study
in partnership with

Corporate Value Associates

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A host of new mobility services are overtaking the traditional automotive industry. Electric vehicles, ride-hailing, subscription offerings, usagebased transport facilities and many other innovative mobility services are quickly attracting support among consumers and businesses. 

The rapid rise of a new generation of mobility offerings is not only shaking automotive manufacturers, suppliers and dealers. It is also forcing financial services firms, which have long supported the automotive industry, to rethink how they address the mobility sector. The emergence of a diverse and dynamic range of mobility options, fast replacing the conventional automotive business, presents banks, insurers and other finance providers with substantial threats and opportunities. 

The automobility industry has been going through profound changes in recent years, with major structural shifts (EVs, mobility, agency model, regulation) being compounded by some unexpected disruption, on supply (Covid-19, chip shortage). While not all of these forces are new, their combined impact, together with the importance and urgency of the decisions facing automobility players, continues to grow.

The total value opportunity in automobility remains large, with mobility as a structural necessity and customers willing to pay for models that provide them with value (whether that’s value for money, simplicity, insights, etc., depending on the segment). But unlocking that value requires more varied capabilities than manufacturing a vehicle and financing it.

What is clear is that no player can succeed just by embedding into their traditional positioning: value pools have been opened to competition, and the need for partnership to shoulder multiple investments, but also make new models work, is true for all players. Understanding how OEMs, captives, leasing companies, mobility players, insurers, importers/ dealers, and finance players think about the value chain is critical to deciding where to play and how to win in this changing landscape. Declining can be just as important as selecting in such an open playing field!

Ready to navigate the evolving landscape of automobility and unlock new value opportunities? Download our full report now to gain insights into the shifting dynamics of the industry and discover strategies for success in this competitive market.

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