Virtual Summit unpacks imminent challenges facing F&I industry in South Africa

The recent Finance and Insurance (F&I) Summit, which took place virtually on Tuesday 18 May, included insight from key sponsor Absa about the imminent challenges facing the F&I industry in South Africa.

Speaking on behalf of Absa Vehicle and Asset Finance, Fulufhelo Mandane, Head of Dealer Relationships for Gauteng and Limpopo, highlighted the importance of this type of industry summit as a driving force for critical thinking, reflection, and an opportunity to unpack the imminent challenges facing in the industry.

He emphasised the importance of building and maintaining customer relationships in order to service the entire business. Following the COVID-19 pandemic, businesses have had to revamp their strategies to cater to the new normal, which requires more online services to help customers with all their needs. The pandemic has also caused a major economic slump, which has put pressure on sales teams. To improve sales efficiencies, Absa has invested in system enhancements to significantly reduce sales turnaround times. Its upskilled and dynamic team has become proficient in catering to the consumer market in 2021.

“Critically, we face a series of interlocking factors that will determine the conditions in which we emerge at the tail end of this pandemic. Importantly – we need to be more discerning and able to infuse flexibility into our strategies, as the market dictates, but partnerships remain the Holy Grail,” Mandane said.

“As a bank, we acknowledge the continued importance of the dealer network particularly in our value chain and we strive to prioritise dealership’s needs and plans. It is a give-and- take partnership with financiers also carrying a responsibility to lighten the load for F&Is. We consistently seek ways to best service the F&I industry with an understanding that ultimately the customer is key in this equation”.
Mandane also elaborated on the compliance efforts Absa has made to help both F&I’s and their customers so as to be beneficial to both parties.

“Advancements in our client onboarding systems make it far easier to do business with Absa. Our innovative credit scoring platforms allow for dynamic customer scoring capabilities and our dynamic pricing system enables an optimum level of control for rates and commissions for our frontline sales team. We have integrated our insurance offering, providing dealerships with a single point of sale platform including products such as Scratch and Dent, Tyre and Rim Cover, as a one-stop-shop to cater to customer needs.”

Over 634 delegates benefited not only from this dynamic and highly interactive programme including local and international experts, industry stakeholders, motivational speakers, and highly regarded sales experts but also earned themselves CPD points.

This event brought together the best and brightest executives in auto finance and insurance to provide industry stakeholders with up-to-date information, innovative sales techniques, and unparalleled networking opportunities to help navigate the year ahead. Other sponsors of the F&I Summit included NADA, Lightstone Auto, Motorvaps, and Mix Telematics.