Ford is considering launching as a bank in the UK, renaming its Ford
Credit arm Ford Bank and moving beyond car loans into new financial
The move will further blur the line between the traditional high street
banks and the new entrants to the financial sector, such as Tesco and
Other car manufacturers, including Volkswagen, are known to be
considering a similar move but Ford is the only motor company in the UK
registered with the Bank of England and able to take deposits from
A spokesman for Ford Credit said the direction of the finance division
was being considered by senior Ford managers in the US.
‘We will be taking the bank theme further. What we do at the moment is
all motor finance but I would anticipate that we will be branching out
with the portfolio we offer,’ said the spokesman. ‘The amount of
business we do is limited to the number of cars we sell each year, so it
makes sense to go beyond financing cars.’
Ford sold 411,000 cars last year, more than half of them through Ford
Credit finance deals, but the company sees stepping outside motor
finance, to offer products such as loans and insurance, as a way of
generating new revenue.
Ford Credit operates through 1000 Ford dealerships in the UK and already
advertises itself in motoring magazines as a ‘drive-in’ alternative to
the high street banks.
This article was first published on Marketing