The implications for financial services in mobility
The implications for financial services in mobility
There is growing consensus that there will be a decline of the number of vehicles on the road. This has mostly negative implications for providers of financial services with their current products, viz. asset finance. However, there are also opportunities to create appropriate products and services, especially with the availability of big data and the technologies to analyse them; writes Terence Singh, Manager at Matchi and KPMG South Africa.
New mobility models like ride sharing and ride hailing will impact personal car ownership.
• Rise in ride hailing services like Uber and Taxify, who processed over 2 million rides between them.
• The economic incentive to the average SA consumer who is estimated to save R14 000 annually by utilising Mobility-as-a-service (e.g. Uber).
Financial Services (FS) play a critical role in enabling both consumers and corporations to engage with the Mobility ecosystem. It is vital that FS recognises the needs within the market and transforms to become a 21st century enterprise, catering for the shift from Asset to Access based Mobility. Financial Services companies offer primarily lending and insurance products to the Mobility Ecosystem today, which is expected to continue in the future. Despite the decline in personal ownership, the need for personal mobility remains and will be satisfied by other service providers. It is incumbent for financial services companies to identify these segments and design appropriate products and services.
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