Secure Trust Bank has targeted growth in the in the near-prime and prime car finance sector after appointing former NextGear Capital boss David Mercer as managing director of its motor finance division, Moneyway.
Mercer has over 35 years’ experience in the motor industry and joins the business from the stock funding arm of Cox Automotive, NextGear Capital, where he served as managing director for four years.
Secure Trust Bank said in a statement that he had successfully led the expansion of the NextGear Capital business to become “a leader in the UK and Irish markets”.
Mercer started his career at Arthur Andersen, before joining Ford Credit, the financial services arm of Ford Motor Company, and Manheim Europe.
Secure Trust Bank said that it had been working to reposition itself within the motor finance sector over the past 12 months, shifting its focus from sub-prime lending.
The business said that it was starting to see “significant growth in its lower risk lending products” as a result.
Secure Trust Bank reported a 26% increase in motor lending balances from £205.6m to £258.4m in the 12 months to June 30, 2017.
David Mercer, managing director of Secure Trust Bank’s motor finance business, said: “The motor finance division continues to be a core element of Secure Trust Bank’s growth strategy, so it is an exciting time to be on board.
“Uncertainties in the market have shifted our focus away from writing new subprime loans in order to guarantee the long-term security of the business. We are now committed to writing higher volumes of lower risk business, and as a result, the proportion of our lending in the near prime space is growing significantly.”
Mercer said that he saw a “fantastic opportunity” to build on the bank’s momentum over the past 12 months and said that it was already looking at long term investment to develop its offer and attract new customer segments.
He added: “Secure Trust Bank has a very strong capital base which puts us in a great position for future growth and innovation which will also benefit our partners long term.
“I’m really looking forward to using my experience to take the business into a new phase of growth and development.”