A new whitepaper co-authored by Capita and Finativ outlines a gulf between the cars customers are buying and how they pay for them: in spite of the car industry having undergone a transformation towards electrification, the fundamentals of motor finance remain firmly in the age of the combustion engine.

Much as car manufacturers that do not invest heavily in the latest battery technology risk being left behind by rivals, motor finance providers that do not embrace the ultra-flexibility offered by digital subscriptions risk being usurped by providers that do, according to the whitepaper.

The industry is at a tipping point, according to the report’s authors, with “more honesty” needed about consumers being “increasingly uncomfortable with paying so much money for a car that stands parked for 95% of the time.”

The whitepaper explores how the sector is facing a perfect storm of difficulties: lower consumer spending power, drivers rethinking how they use their cars, and even whether they need a car at all.

Key takeaways from the whitepaper:

  • Financial institutions traditionally responsible for motor finance could cease to be trusted providers for the next generation of motorists if they do not urgently wake-up to a model of private car ownership that encompasses the vehicle, insurance and electric/fuel
  • Banks already have the technology to enable speedy customer verification, authentication and credit-approval processes – all must haves for the sector to move towards a “pay-per-drive” model. Yet many financial institutions have been slow to apply this to motor finance and leasing for fear of alienating traditional dealer and franchise relationships
  • Even for a sector facing considerable challenges, the opportunities are ripe for a finance provider to become the customer’s go-to for all aspects of car ownership: the vehicle, finance to suit bespoke mobility requirements, and the technology to support car-sharing and easy mobile payments
  • As customers’ car brand loyalty reduces, especially among newer and younger drivers, finance providers have a golden opportunity to capitalise on loyalty fostered by current accounts and mortgages to attract and retain customers for themselves
  • With less residual loyalty to motor manufacturers, financial institutions could shake-up the sector by offering hybrid propositions of car rental and public transport access from the same app/monthly subscription


Publication of the report aligns with the appointment of Harish Naidu to the new role of associate client partner for motor finance at Capita Experience, part of Capita plc.

Motor finance is a key pillar of Capita Experience’s strategy to grow its financial services business, and Harish will lead the company’s existing and prospective motor finance relationships. He has over 15 years’ experience delivering technology, consulting and outsourcing services in verticals including asset and motor finance services.

Aparajita Ajit, managing director for Capita’s financial services businesses, said:

“The current model for private car ownership – paying separately for the vehicle, insurance, and electric/fuel – could soon go the way of smoky diesel engines. We book all-inclusive holidays, so why shouldn’t the ownership package of a car include all aspects of ownership?

“The winners of the hearts and wallets of tomorrow’s car buyers will meet the needs of a generation more accustomed to Apple Pay and the Spotify subscription model than more traditional payment methods. The message to the existing motor finance players is clear: do not risk getting caught sleeping at the wheel.

“With years of experience in financial services and a proven track-record in driving transformation, I am delighted to welcome Harish Naidu to Capita Experience as associate client partner for motor finance.

“Harish will work closely with me to meet the needs of our current and prospective motor finance clients, and as a self-proclaimed car enthusiast and lover of EVs he will bring a passion for the sector to this role.”

For more information, please contact:

Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk


About Capita plc

Capita is a consulting, transformation and digital services business. Every day our 52,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between government and citizens, businesses and customers. We partner with our clients and provide the insight and cutting-edge technologies that give time back, allowing them to focus on what they do best, and making people’s lives easier and simpler. We operate across three divisions – Capita Experience, Capita Public Service and Capita Portfolio – in the UK, Europe, India and South Africa.

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