THE RECENT FCA announcement on Motor Finance is set to challenge the traditional finance commission model.
The FCA is seeking a higher level of transparency, which could lead to the type of commission disclosure seen in other regulated areas of financial services and a change or even end to DIC commissions and its variations.
In spite of these challenges, Jigsaw Finance is upbeat about the prospects for its own business and how it can help dealers.
Mel White, Business Development Director, said: “As a motor finance broker, we are in the same position as motor dealers when it comes to the changes identified by the FCA in their recent final findings report following their review of motor finance.
“We have a great track record of innovation, a deep empathy with dealers, a deep pride in the care, quality and integrity in the way we help car buyers to source the most appropriate finance to their needs to support their car purchase and a very broad product portfolio to match the customers’ needs with the most appropriate financing option.
“Brokers, like dealers, are in pole position to help lenders to gain the distribution they need to link their finance with would-be car buyers who need an affordable repayment option to help them to finalise their purchase.
“We have multiple product options from a portfolio of lenders to match a product to a customer’s needs and importantly we have direct access to the customer to help establish these needs and affordability parameters. It is a role we take very seriously and our long-term reputation is evidence of our commitment to a high integrity approach.”
Jigsaw has invested in a new service ‘Finance Assist’ a dedicated remote Business Manager service designed to help dealers and their customers’ financing needs, launching the service in January.
The timing of the launch for what has already proved to be a popular service is now even more relevant in what is set to be a changing environment for dealer finance with ‘on-call’ business management expertise ready to provide dealer customers with an effective and highly transparent service.
Whether it is assisting a dealer who does not have the scale for a Business Manager, the time or expertise, or simply to provide back-up, Finance Assist is now helping a growing dealer audience to serve their customers’ financing needs right across the credit spectrum, including business users.
White added: “Changes to the remuneration structure in motor finance will emerge and greater transparency on status and commission will be included. However, looking to other regulated financial services, we believe different distribution and support fee options will develop to reflect the role of the broker/dealer in the financing process.
“We are ready to adapt to these to help more dealers and ensure they benefit from the benefits of finance to help sell more vehicles.”
