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Investec Asset Finance Broker Conference 2017 Andy Hart Head of Investec Asset Finance
Investec Asset Finance Broker Conference 2017
Andy HartHead of Investec Asset Finance
Business update & strategy
Stuart HughesHead of Broker SalesInvestec Asset Finance
Business update & strategy
16% 20% 10%
growth growth in book growthin lending overall in live contract
Business update & strategy – market share
HA – 60%SA – 38%
* Market size – 14.5 billion* not including motor* Source: FLA, August 2017
How have we supported you so far
Pricing• Hard asset • Soft asset
New products• Professions loans• SME tax and VAT loans• Regulated HP• Pre-hire and stage payments• Re-finance• Southern Ireland
Recent history
• Consistency and service continues to be our focus • 2017 – Executive Committee strengthened
James Collins Lisa Cleaver Matthew Smith
Broker survey
• 339 took part• Business insight
Provider AProvider B
Provider C
Investec
Provider D
Provider E
Provider F
Our commitment to you
Provider AProvider B
Provider C
Investec
Provider D
Provider E
Provider F
Our commitment to you
Our success, is your success
Don’t take our word for it …..
• Engaged a 3rd party agency to benchmark against our own survey
• What the results told us • Actions• Our 3rd party survey results tells us we tick all these
boxes• Confirmation IAF = valued proposition
What about the theme?
• Majority of broker businesses are growing• Who was surveyed?• What does it all mean?
2017 – how is IAF shaping the future?
IAF’s team consists of 146 people • 46%: aged <40• 48%: female • 65%: 3 years + with IAF
We are also building from within: • Martyn Edwards• Laura James• Fay Boyce
How can we help you shape your future?
52%48%
23%
23%29%
24% < 30 years
30 - 40years40 - 50years
2018 plans – shaping your future
IAF 2018 Broker Training programme• January 18 launch• IAF Credit Workshop (includes fraud, back to basics and GDPR)• Introduction to Asset Finance – aimed at new broker starters (admin and sales)• Product and agreement types• Annual IAF Broker Conference• Quantum Credit Workshop
Quarterly events aimed at helping us support your individual people and teams
2018 plans & what’s to come
• Growth aspirations• Investec assurances – here for the long term• Cross skilling• Technology
Investec Asset Finance Broker Conference 2017
Phil Shaw and Andrew MitchellPolitical and Economic update
Investec Asset Finance Broker Conference 2017
A glance at a few things that matterPhil ShawChief Economist, Investec Bank plc
OK, perhaps not quite this long ago!
The BoE has just raised rates for the first time since…
UK GPD growth (% q/q) – down but not out…
Investec forecast
(Bars represent contributions to growth)
•5 rounds of talks since June - 2 abandoned early. More constructive atmosphere post-PM’s Florence speech. •But EU insists on ‘sequencing’ i.e. agree separation terms before trade deal: i) settlement of existing
obligations (i.e. financial); ii) EU nationals’ rights; iii) RoI-NI relations.•EU methodology implies €80-100bn outlay from UK, but reducing to €55-75bn including repayments
etc…
EU/UK talks
•No deal? EU WTO tariffs vary by sector – average 3%-4% (i.e. relatively modest), but up to 45% for dairy. •Also settle with EU; i) financial services access; ii) other non-tariff boundaries iii) customs arrangements•The 55+ countries that currently have a trade deal with EU?Trade deals
•Financial settlement is UK’s strongest card! Britain is a net contributor of £8.5bn per annum. •UK will request transition arrangement of around two years.•In the end, politics not rules, will drive the outcome.Bear in mind…
Brexit process – much to do…
One to avoid…
Main parties’ current poll ratings (averages)
0
5
10
15
20
25
30
35
40
45
50
May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17
Conservatives Labour Lib Dems UKIP Green
%
Main motivation…Tight labour market, fears of rising pay growth momentum and domestically generated inflation ahead.
Also?• Following the Fed?
The Fed has raised rates four times already.
• Uncomfortable with near zero rates over protracted period.
Today’s rate hike in context…
•GDP growth forecast +1.5% this year, +1.7% next. Squeeze on consumer spending should ease modestly.•Economy vulnerable to i) major adverse reaction to higher rates; ii) Brexit
uncertainty. (Neither is our central case).
Economy is expanding slowly…
•MPC genuinely believes there is an inflation problem.•Our forecast still for two more hikes over next two years (Bank rate at 1.0% by
end-2019).
Rates – up gently from here?
•Don’t forget Budget on 22 November.…•Financial Policy Committee to tighten rules on unsecured lending to consumers
towards end of month (28 Nov)?
Other policy moves
Final observations…
Tom BrownHead of Direct FinancePMD
Case study: IAF & PMD
How we supported eCorrugated
Case study: IAF & PMD
Paul Cunningham
Quantum Funding
• New recruits to Quantum
Quantum Funding
Rob EmmisonQuantum Broker Manager
Lyanne BroomesQuantum Broker Support
Growing team in Quantum
Helen LovegroveCredit – Soft Asset
Paul ClanfieldCredit – Hard Asset
Jonathan Dent Credit – Head of Hard Asset
Kilsey WalkerHead of Broker Support
Lyanne BroomesQuantum Broker Support
Paul HastieCredit – Head of Soft Asset
Rob EmmisonQuantum Broker Manager
Paul Cunningham Head of Quantum
John WardQuantum Broker
Becky JacobsQuantum Broker Support
Quantum Funding
• Beware the Lazy Broker• Fast and consistent underwriting• Fast payouts (same day)• Maintain to Risk Bar • Continued sustainable growth
The Wild Beer Co• Tim Shears – Black & White• Understand the business = visit your client• Why did we lend = vision and passion• Lots of information• Staged payments to Italian supplier
Investec Asset Finance Broker Conference 2017
Andy HartHead of Investec Asset Finance
Investec Broker Conference 2017Q&A
Investec Asset Finance Broker Conference 2017
“This document is not legal advice and should not be acted or relied on as being so. Legal advice should be taken before applying any information in this document to any facts and circumstances.”
“Investec Asset Finance plc is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Registered office at Reading International Business Park, Reading, RG2 6AA. Registered in England Number 2179313.”
