Growing interest from dealers

– The Economist: Why auto brands get started in financing?
– Badr Alioua: Financing has always been a strategic lever in the development of automotive brand sales by giving consumers access to products and gaining mobility solutions. The weight of credit financing in the automotive sector now accounts for between 50% and 60% of a brand's total sales. This also justifies the growing interest of brands for credit activity. Financing is also a considerable asset for retaining the customers of a car brand through a device incorporating speed and advantageous pricing. The goal is to allow the brand to control the financing offers, they are also considered and built jointly. In view of these advantages, the trend is confirmed. Currently, the bulk of car financing is via formulas of this kind (captive or brand dedicated to financing).

– How many car captives are there on the market?
– There is a distinction between a financial captive and a brand specifically dedicated to financing. A financial captive is an independent legal entity created by an automobile group for its own financing needs. In this case, the credit activity is included in the captive's balance sheet. In Morocco, only one captive is present, it is RCI (Renault Credit International) subsidiary of the Renault group. A brand dedicated to financing (commonly known as a white label) is a brand created jointly between a car manufacturer / importer and the finance company. The goal is that the customer experience (purchase and financing) is carried out under the label of this brand. The FCA Capital Maroc partnership falls within this framework.

– How do you explain the success of Wafasalaf in this particular market?
– We are today the leader of the consumer credit sector in Morocco. We have decades of automotive financing experience and our success is supported by an automotive strategy focused on developing partnerships with brands. To support the changing needs of consumers, a car brand needs more than ever to partner with a funding partner to ensure an agile organization and system to integrate the specificities, characteristics and requirements of each stakeholder. A capacity for innovation through a product offering in line with customer requirements and transparency in terms of management and reporting.

– Is outsourcing car loans for others not likely to marginalize you?
– Wafasalaf accompanies market change and the changing needs of consumers. For us, this trend is primarily an opportunity for growth, it consolidates our position as leader in the automotive market. We are therefore determined to deploy our know-how in the context of our partnerships.

– On what basis is Wafasalaf paid in the context of captives / white marks?
– In the context of captives, Wafasalaf is remunerated through management fees. As part of a brand dedicated to financing, the income of Wafasalaf is the GNP generated directly by the activity, because the outstandings are specific to Wafasalaf …