banks (really) want to become car dealers

At the Paris Motor Show, several major banking groups are exhibiting their new mobility financing solutions, from rental to subscription, directly available in branches.

The Paris Motor Show 2022 is also the world of banking. BNP Paribas, Crédit Agricole, Caisse d’Epargne, all want to capture these customers who no longer buy a car, but rent them 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 runs until Sunday, Crédit Agricole is exhibiting 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 together with DS, Jeep or Peugeot. It is quite simply the second most important estate in the world behind Dacia.

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

Banks have followed the development of the automobile almost forever and work to help finance car purchases. But with the change in uses (long-term rental, non-committal, electric car) they adapt 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 company C-Ways, leasing accounted for 47.2% of private financing for the purchase of new cars. This figure was only 21% in 2015.

The electric seems 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 greater feedback about vehicle life. “We don’t know the residual value of the electric car very well today,” explains Stéphane Priami, CEO of Crédit Agricole Consumer Finance – CACF bank’s dedicated consumer credit subsidiary – and Deputy CEO of Crédit Agricole SA. Customers therefore prefer to rent”. This also allows the banks to sell together with other services.

Subscription, leasing for under 100 euros

Alongside 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, specifically intended for French people affected by the ZFE’ is, via its subsidiary Sofinco. And why not even tomorrow subscription services. “One of the major phenomena affecting the mobility sector is usage, continues Stéphane Priami. More and more customers no longer want to own a car, but use one when they need it.”

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

By 2025, Crédit Agricole Consumer Finance expects to achieve 50% of its revenue through mobility. BNP Paribas aims to increase its revenues from mobility by DKK 1 billion. This would bring the bank’s turnover in this sector to 3 billion euros by 2025.

Pauline Ducamp and Justine Vassogne

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