Financial transactions need to be more efficient, secure, real-time, and self-reliant, finds Frost & Sullivan
SANTA CLARA, California, Nov. 21, 2018 /PRNewswire/ -- As the automotive industry faces narrowing margins, stakeholders need to identify additional revenue streams, while also keeping the customer committed to the brand for their next purchase. According to a recent analysis from Frost & Sullivan, manufacturers must look beyond the initial sale of the vehicle and periodic maintenance revenue, and focus on creating a personalized in-vehicle experience through allied service partners to succeed in the future.
"Digital payments have re-energized the mature automotive industry, helping it generate revenues from experience-centric, rather than purely purchase-based, models," said Isaac Abraham, Mobility Senior Consultant. "Companies need to invest in, and develop, pilot offerings in fintech across the automotive value chain."
Frost & Sullivan's recent analysis, Powering Monetizing Opportunities in Global Automotive Retail, Forecast to 2030, explores best practices in digital retail initiatives, key digitization opportunities, fintech and blockchain roles and impacts, growth opportunities and areas of focus for automotive finance, retail, and customer experience across retailing.
For further information on this analysis, please click here.
Companies that are eager to grow the monetization offering in the global automotive retail space can find opportunities through the pursuit of the following initiatives:
- Partnerships with payment solution providers, such as Google, Amazon, Apple, Alibaba, and Tencent, can provide OEMs with robust digital finance and leasing tools, digital security, and new monetization opportunities.
- Subscription-based business models and investments in digital services powering vehicle/feature subscription capabilities to create a customer experience beyond the initial vehicle purchase stage.
- Active participation in blockchain consortiums will be key to building commercialization opportunities.
"Digital payments are redefining the automotive industry. The automotive payments processing segment is set to grow over $500 million by 2025, with early launches giving companies the edge in building brand loyalty," noted Abraham. "Digital fintech solutions are the key to catalyzing new business models, opening new revenue streams, and creating attractive investment opportunities within the automotive market."
Powering Monetizing Opportunities in Global Automotive Retail, Forecast to 2030 is the latest addition to Frost & Sullivan's Mobility research and analyses, available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Powering Monetizing Opportunities in Global Automotive Retail, Forecast to 2030
SOURCE Frost & Sullivan