Friday, October 28, 2011
HML could bring new lenders to sector
Financial outsourcer HML, a subsidiary of the Skipton building society, believes it is in a position to enable the entrance of new lenders to the UK motor market through “white label” partnerships.
The company operates a totally outsourced model whereby a funder would provide capital, but HML would supply people, infrastructure and portfolio management for a market entry.
The company has recently started exploring possibilities with overseas finance providers, as well as venture capitalists and private equity providers in the UK.
Graham Donald, HML’s commercial manager, said the company is identifying sources of capital, but added “there are no bites just yet.”
Once licensed by the Financial Services Authority and registered at the Office of Fair Trading, Donald said, a supplier of capital would be free to go direct to the public or partner with dealer groups.
As well as courting potential new market entrants, the company is exploring the domestic car finance market with a view to purchasing and managing portfolios of PCP and HP loans.
Donald said the company also had plans to explore the development of deposit products to captive finance companies with banking licenses.
“We’re making people aware of what HML does,” said Donald. “We have huge experience within the mortgage sector, but people don’t necessarily know we’re here in motor finance.”
DATED: 28.10.11
FEED: MF
