iVendi is launching a new subsidiary intended to give car dealers faster access to finance providers without immediately entering full lender relationships.
Fullbeam Financial Services will use iVendi’s existing technology connections to link dealers and lenders through its Finance Navigator online price comparison platform.
iVendi is positioning the service as a “third channel” for dealer finance, sitting alongside direct lender relationships and traditional brokers.
The company said changing the composition of a dealer’s lending panel can currently take several months, with no guarantee that the new commercial relationship will prove successful.
Faster access to lender panels
James Tew, chief executive of iVendi, said: “If dealers want to change the composition of their lending panel or lenders want to reach new dealers, it tends to be a laborious process that takes months – and there is no guarantee the new relationship will work.
“Fullbeam is, as far as we are aware, unique in that it exists purely as an intermediary to enable dealers and lenders to use the existing, highly compliant links we have in place. It’s a ‘try before you buy’ proposition before entering a full relationship.”
The model is designed for dealers that want to retain control of their finance proposition while gaining access to additional providers.
Tew said: “This is not a traditional broker, where you are guided towards what the broker believes is the best solution. Instead, it empowers dealers and their customers to make product choices from across our entire portfolio.
“Dealers who want fully outsourced motor finance should still turn to an existing broker, but where they want to take greater control of their own lending right now, Fullbeam provides an instant solution.”
Six lenders join at launch
Six lenders have agreed to participate in Fullbeam, with four expected to become available during November.
iVendi ultimately wants dozens of finance providers to be accessible through the service, creating what it describes as a short-term dealer-lender market.
Tew said: “Our vision is to have dozens of lenders in place that can be accessed by dealers immediately through our Finance Navigator online price comparison platform, creating a whole new short-term dealer-lender market.
“This is something genuinely new in motor finance – a third channel in addition to direct lender relationships and brokers that brings a wide range of advantages in terms of choice and speed.”
iVendi said its transaction data could also be used to help dealers identify gaps within their current lending panels and assess which providers may suit their requirements.
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