# Make a positive impact through innovative business practices Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-04-13 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: The FCA's Positive Outlook on Motor Finance Innovation Meta Description: Discover how the FCA's positive view on PCP contracts is impacting the motor finance industry and why businesses need to innovate and focus on responsible Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/make-a-positive-impact-through-innovative-business-practiceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd130418-3-1736842841305-compressed.jpg) _By **Gerry Kouris**, Marketing Manager at ALPHERA Financial Services_ The FCA’s recent comments on motor finance, and PCP in particular, have been encouraging. Speaking at recent consumer finance event, Jonathan Davidson, Director of Supervision – Retail and Authorisations at the FCA, commented that the growth of PCP contracts in the motor finance market is a “good example of an innovation that has had a significant impact,” and that this type of innovation “paints a really attractive picture” of the motor industry. This [positive outlook](https://www.financedigest.com/sales-forecasts-of-automotive-parts-remanufacturing-market-reveal-positive-outlook-through-2026.html "Sales Forecasts of Automotive Parts Remanufacturing Market Reveal Positive Outlook Through 2026") is certainly consistent with our view of the industry, as I’m sure it will be for every finance provider that believes in the robustness of their products and puts ‘treating customers fairly’ at the heart of their operations. However, in its recently published 2018 Business Plan, the FCA reiterated the fact that it will be undertaking further work on responsible lending, particularly the [approach taken by motor finance](https://www.financedigest.com/uks-finance-minister-sets-out-new-economic-approach-to-finance-bosses.html "UK’s finance minister sets out new economic approach to finance bosses") lenders to assessing creditworthiness, including affordability. It’s imperative, therefore, that we challenge ourselves to do better, helping dealers to match the right product to the right [person every time](https://www.financedigest.com/elon-musk-named-times-2021-person-of-the-year.html "Elon Musk named Time’s 2021 ‘Person of the Year’"). For many dealers, this will involve business model diversity – looking at new [ways to ‘innovate’ and secure](https://www.financedigest.com/contactless-payments-the-way-of-the-future-or-security-scare.html "Contactless Payments – The Way of the Future or Security Scare?") outcomes that are positive for them and, importantly, their customers. We [see innovation](https://www.financedigest.com/the-next-decade-to-see-the-humanized-liver-mice-model-market-detonate-innovation.html "The Next Decade To See The Humanized Liver Mice Model Market Detonate Innovation") and change as two sides of the same coin. ‘Innovation’ is a trendy word with which [companies of all shapes and sizes](https://www.financedigest.com/multigrain-bread-mix-market-size-share-top-leading-companies-consumption-drivers-trends-forces-analysis-revenue-challenges-and-global-forecast-2029.html "Multigrain Bread Mix Market: Size, Share, Top Leading Companies, Consumption, Drivers, Trends, Forces Analysis, Revenue, Challenges And Global Forecast 2029") often try to associate themselves. But innovation can also refer to changing [existing company](https://www.financedigest.com/computerized-physician-order-entry-cpoe-systems-market-to-generate-profitable-avenues-for-existing-companies-as-well-as-new-players.html "Computerized Physician Order Entry (CPOE) Systems Market to Generate Profitable Avenues for Existing Companies as Well as New Players") practices, as much as it does to inventing something completely new. This type of _cultural_ innovation, however, can be less popular and often faces greater resistance. That’s because making [impactful changes](https://www.financedigest.com/ngunu-tiny-discusses-how-covid-19-has-changed-the-future-of-impact-investment.html "N’Gunu Tiny discusses how COVID-19 has changed the future of impact investment") to business culture often isn’t easy. But as Jonathan Davidson at the FCA alluded to in his speech, a [successful business](https://www.financedigest.com/why-seo-is-crucial-for-business-success-post-pandemic.html "Why SEO is crucial for business success post-pandemic") model relies on having a healthy culture, where staff are encouraged to be curious and questioning. This is whyAlphera has established a partnership with the Institute of the Motor [Industry to promote the uptake of a new accreditation scheme for finance and insurance](https://www.financedigest.com/what-will-2022-hold-for-the-insurance-industry.html "What will 2022 hold for the insurance industry?") sales specialists. The scheme provides a platform for self-regulation to support compliance, introducing [shared core values](https://www.financedigest.com/rare-neurodegenerative-disease-treatment-market-value-share-supply-demand-share-and-value-chain-2021-2031.html "Rare Neurodegenerative Disease Treatment Market Value Share, Supply Demand, share and Value Chain 2021-2031") across dealerships. This type of innovation is more than simply complying with a [regulator’s demands](https://www.financedigest.com/strict-regulations-regarding-hygiene-at-industrial-workplaces-to-create-high-demand-for-industrial-dispensers-persistence-market-research.html "Strict Regulations Regarding Hygiene at Industrial Workplaces to Create High Demand for Industrial Dispensers: Persistence Market Research"). But rather an opportunity to [instil the culture and expertise needed to make ‘treating customers](https://www.financedigest.com/instilling-customer-confidence-in-the-pandemic-era.html "Instilling customer confidence in the pandemic era") fairly’ a core value for everyone in the business of selling cars. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---