HomeAutomobileMondial de Paris: Banks (really) want to become car dealers

Mondial de Paris: Banks (really) want to become car dealers

At the Paris Motor Show, several of the main banking groups are exhibiting their new mobility financing solutions, from rental to subscription, directly accessible at agencies.

The 2022 Paris Motor Show is also the Banking World. BNP Paribas, Crédit Agricole, Caisse d’Epargne, all want to attract these customers who no longer buy a car, but rent it for an hour, a few months or several years. And thus become giants of electric mobility.

New mobility offers

In hall 4 of the Paris Motor Show, which will last until Sunday, Crédit Agricole exhibits a Tesla Model Y or a model from the Vietnamese manufacturer Vinfast and even a Fisker Ocean. The bank offered a 500 square meter stand, along with DS, Jeep and Peugeot. It is simply the second most important stand in the world behind Dacia.

BNP Paribas is also present, through its subsidiary Arval, it will be present in Hall 3, just a few days after Deputy CEO Thierry Laborde “placed mobility at the heart of our development projects”, through the new strategic plan of the group, GTS 2025.

Banks have accompanied the development of the automobile almost forever, working to help finance the purchase of automobiles. But with the change of uses (long-term rental, without commitment, electric car), they are adapting their offer.

With the electric car, customers prefer to rent

Customers take out less and less conventional credit and no longer necessarily buy a car for life. Last year, according to figures from the firm C-Ways, leasing accounted for 47.2% of financing from individuals for the purchase of new cars. This figure was only 21% in 2015.

Electric vehicles seem to accelerate this phenomenon: customers prefer to lease their car for two or three years because the resale value at the end of this period is still difficult to assess. Technology is constantly improving, so is battery life, and customers expect more information about vehicle life. “Today we don’t know very well the residual value of the electric car,” explains Stéphane Priami, CEO of Crédit Agricole Consumer Finance, CACF, the bank’s consumer credit subsidiary, and deputy CEO of Crédit Agricole SA. Therefore, customers prefer to rent”. This also allows banks to sell alongside other services.

Subscription, leasing less than 100 euros

In addition to its traditional fleet leasing activities for professionals, Crédit Agricole intends to offer long-term vehicle leasing through its network, but also an offer of new and used electric cars for less than 100 euros intended in particular for affected by ZFE, through its subsidiary Sofinco. And why not even subscription services tomorrow. “One of the main phenomena that affects the mobility sector is that of use, continues Stéphane Priami. More and more customers no longer want to have their own car, but rather use it when they need it”.

If they have been working on this issue of electric mobility for several years, the banks clearly want to accelerate. BNP Paribas will thus launch a platform for the acquisition of new and used cars next year. It will initially target clients of its French agencies. The CA subsidiary Sofinco put its offer on the market on October 14 at less than 100 euros for an electric car.

By 2025, Crédit Agricole Consumer Finance expects to reach 50% of its turnover through mobility. BNP Paribas intends to increase its mobility income by 1,000 million. This would take the bank’s turnover in this sector to 3,000 million euros in 2025.

Author: Pauline Ducamp and Justine Vassogne
Source: BFM TV

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