Auto finance growth strategy

An automotive financial institution was experiencing declining market share and fee compression in its traditional business. The client offered warehouse financing, underwriting for securitizations of automotive finance portfolios, and investment in entire automotive finance portfolios. Management was interested in exploring opportunities to extend its position in the automotive finance industry by leveraging current know-how and the balance sheet.

Strategy& developed an automotive finance growth strategy for the client. Strategy development included a detailed market sizing, market segmentation, and an assessment of the economics of automotive finance across multiple products (lease, loan, sub-prime) and value chain entry points (e.g. originations, servicing). The team also developed detailed pro forma portfolio economics for the client’s structured finance business across multiple business scenarios and prioritized growth opportunities.