Three start-ups have secured long-term commercial relationships with BMW Financial Services UK which will see their businesses launched in the UK.
It is the result of BMW FS UK’s first Innovation Lab.
As the first ever startup innovation programme for the motor finance industry, the 10-week programme saw five start-ups work at BMW Group’s UK HQ in Farnborough, with support from executives and data.
The programme, run in collaboration with innovation specialists L Marks, concluded with a ‘demo day’ event where finalists pitched to BMW Group Financial Services to secure long term commercial relationships.
Deals have already been struck with:
Cazana.com - described as Zoopla for cars, Cazana's database covers every vehicle in the UK and allows customers to track the value of their car, previous sales history and a timeline of a vehicle’s lifespan. BMW FS UK will start a nine month trial with Cazana, using its information on classic and prestige cars with the ambition to build a new platform allowing BMW FS UK to increase their share of this high growth, high value market.
Divido - an app offering 0% finance options for drivers hit by unexpected repair costs following vehicle servicing. Divido will pilot across four BMW centres in Chiswick, Carlisle, Newcastle and Heathrow. All will leverage Divido’s panel of lenders and consumers visiting these dealerships will have the opportunity to split the cost of important purchases over a longer period – all which can be managed via a smartphone.
Wrisk – an insurance app centred around people, rather than their possessions. Bringing motor, travel and home cover together, Wrisk offers insurance that is “more intelligent and flexible”, reducing costs and allowing users to run their policies from a smartphone. BMW FS UK has signed a letter of intent to initiate a commercial relationship with Wrisk once the app officially launches in 2018.
BMW Financial Services UK is continuing commercial discussions with Warwick Analytics, a predictive analytics platform that allows businesses to utilise big data, and Drover, a car rental and ridesharing platform described as the Airbnb for cars.
Mike Dennett, BMW Group Financial Services UK chief executive, said: “Automotive finance faces a number of major challenges in the coming years. The industry has seen little innovation in the past decade and is ripe for change and potential disruption.
"The Innovation Lab was created to take on these challenges head on by harnessing the disruptive energy and technology of startups.
"We initially launched this programme to help us embrace a more innovative, agile culture across our business and so we're delighted to confirm on-going commercial relationships with three of our alumni.
"The Innovation Lab has proven to be a fantastic first step for both BMW Group and the wider automotive finance industry and proves that collaboration between big business and startups can produce tangible commercial benefits for both sides.”