Standard Bank’s Group Vehicle and Asset Finance division has launched a brand new Wholesale Finance Proposition that will offer original equipment manufacturers (OEMs), distributors and their dealer networks a single partner providing comprehensive vehicle and asset finance capabilities across the African continent. “We have strategically identified this key component of the automotive and commercial value chain as a missing link, and the Bank has invested in people, technology and the business to close this gap quickly,” said Simphiwe Nghona, Group Head of Vehicle and Asset Finance at Standard Bank.
The Wholesale Finance offering provides clients with a solution to cash flow constraints across the entire supply-demand ecosystem by enabling them to finance everything from floorplan inventory, specialised equipment, diagnostic tools, dealer management systems and parts. It also offers the ability to simultaneously access trade finance capabilities while stock and other inventory can be collateralised by other moveable assets, offering a unique differentiation to the African vehicle and asset finance market.
“Wholesale Finance is specifically designed to help our clients grow their businesses across the continent through a flexible way of financing their assets across the entire automotive and commercial ecosystem,” said Ravi Naicker, Head of Wholesale Finance at Standard Bank. “Given our vast geographical footprint across Africa this is a unique opportunity for both local and internationally based OEMs and distributors as well as their dealer networks, looking to grow their own presence across the continent.”
Standard Bank plans to roll out the Wholesale Finance proposition in as many as four African markets in 2019 and up to five more in 2020. It also plans to expand its capabilities and offering during the course of the rollout in order to tailor it to the specific needs of its clients operating across the continent.
Standard Bank’s new Wholesale Finance offering will boast the following features:
- An online self-service system which offers simple management of client facilities
- Fully outsourced asset verification services with capabilities that include geolocation technologies
- Co-investment in digital links that integrates the Bank with the OEM and dealer systems
- Ability to finance a variety of moveable assets
- Competitive and tailored rates and fees
- Close relationships through a dedicated team of specialists to regularly review and evaluate a client’s requirements
- Extensive reporting and management information capabilities
In deciding which systems to implement, it was essential to select systems and partners who had extensive experience in the global wholesale market. The Bank decided to partner with Apak as their finance system provider. Apak have provided leading global software solutions to the banking and Wholesale Finance sectors for over three decades. Now deployed in over 29 countries worldwide with over 80 live installations, Apak has the largest global network for business and technical expertise in Wholesale Finance. Together, they have designed Wholesale Finance to ensure it can flawlessly integrate systems and processes across different geographies, therefore simplifying workflow and minimizing the cost of entry into new markets. This ensures that all the capabilities that exist in South Africa, will be replicated across the continent including digital links, manufacturer and dealer portals, access to the various product sets within Wholesale Finance and local currency finance for each country.
“The Wholesale Finance solution allows us to do just that and seamlessly rounds off our Group Vehicle and Asset financing proposition to OEMS, their dealer networks and other partners.” said Nghona. Ravi Naicker concluded that “Our higher purpose is to facilitate growth and expansion on the continent and we invite the leaders of industry to co-create the future of this amazing home, we call Africa.”