A crucial distinguishing feature, high service revenues, greater customer loyalty, control of the second-hand market, better price enforcement, improved cash flow, fair external assessment – this is not the long-term agenda of an ambitious board of management, but rather the proven effects of a professionally organized Financial Services (FS) Organization. The combination of physical products and services with customized financing solutions is a perfect example of how 1 + 1 can add up to more than 2. However, industrial companies are often much more at home with their tangible products than with seemingly complex “banking matters.”
This is apparent in the organically evolved structures and half-hearted emergency FS solutions that deliver only a fraction of the potential benefits. Better solutions have been implemented not only by automakers and retailers, but also by leading machine builders.
1. Industrial companies are aware of only a fraction of the benefits of financial services.
2. Instead of taking full advantage of the potential, companies become tangled up in a variety of practical issues.
3. The switchover to professional financial services can be achieved within one to two years.
4. Active development of the FS products, instead of simply responding, can constitute a significant competitive difference.