23 June 2015
Bank of Ireland UK’s asset finance business harnesses award-winning ‘Joint Venture’ product to change the shape of the industry
Brokers and Motor Dealers across the UK and Northern Ireland are increasingly turning to a shared risk and reward arrangement on offer from Bank of Ireland UK’s asset finance business, in a trend which could mark a turning point in the way the industry conducts business.
Earlier this year, Northridge Finance celebrated after its Joint Venture offering was named Best Finance Product at the Motor Finance Europe Awards in Munich, after judges decided the product stood head and shoulders above others on the market. Recognition from the market continues to grow, with the numbers of premium Motor Dealer groups signing up for the product increasing by the day – indeed the number of Joint Venture partners has doubled in the last 2 years.
A key part of the product portfolio of Northridge Finance and its Northern Irish counterpart NIIB, the shared risk and reward strategy was established almost 20 years ago with a small number of dealer groups in Northern Ireland. It has since grown in popularity to the extent that it now accounts for almost 20% of annual new business-lending across the UK for Northridge.
Joint Venture is unique in the way it is relationship led, transparent and very much a long-term arrangement which offers stability to dealer partners. It has created incremental finance penetration on the forecourt and a valuable income stream for Northridge partners. Promoting strong, long term ties between Northridge and intermediaries, it helps to sell additional vehicles and allows market leading interest rates to be offered on the forecourt.
James McGee, Managing Director of Northridge Finance, said: “Both brokers and car dealers in today’s market are constantly looking for an edge which they can use to pass on increased value and lower costs to their customers.
“By sharing the reward and risk from an asset finance product, Joint Venture has allowed our partners to better cater for their customers and enjoy increased profits at the same time.
“We expect the percentage of Joint Venture products in our annual new business-lending to continue to grow, and believe the product to be a real game-changer across the market as a whole.”
John Sampson, Director of Finance & Insurance at John Clark Motor Group is one of those convinced by the benefits of the product.
“The Northridge Joint Venture product is a vital tool that we use day to day in dealing with our customers. It allows us to compete for every finance customer with competitive and customer friendly terms.
“The flexibility of Joint Venture has resulted in increased finance penetration and income across our group. The Northridge back up is first class, both from Head Office and the field, giving us conviction to use the product on a daily basis across our dealerships.”
NIIB & Northridge Finance has increased PBT of over 150% since 2010 with new business lending growth of over 100% in the same period. This performance has contributed to an increase in profits at Bank of Ireland UK, which announced its annual results for 2014, showing profit before tax rising from £61million to £199million.
About NIIB and Northridge Finance
NIIB was formed in Northern Ireland in 1956, and was acquired by Bank of Ireland in 1984. Northridge Finance, which forms part of NIIB’s asset finance portfolio, has been trading in Great Britain since 1999 and specialises in intermediary introduced finance providing both personal and commercial finance solely for the Great Britain Market, through Motor, Commercial and Agricultural intermediaries.
The business ensures competitive advantage through high quality relationships with a personalised service, working with the intermediary as a partner, through high speed of delivery and customer propositions to meet ever changing market needs through efficient IT systems.
NIIB/Northridge offers a comprehensive range of lending products and services for the dealer / intermediary market which can be used to best meet their individual customer requirements.