South Africa’s vehicle and asset finance lenders are experiencing large-scale industry disruption. Customers’ retail behaviours, expectations and preferences are evolving with the introduction of virtual showrooms, comparison websites, mobile apps and social media. Global trends indicate that the entire process of purchasing a vehicle is changing, with personalised and self-service offerings at the forefront.

One of South Africa’s leading vehicle and asset finance companies recognised the opportunities digital change is creating and understood that they needed to transform their business in order to remain competitive. They had a centralised IT organisation which operated on traditional methodologies and no longer has the capacity to meet business demands.

In order to remain competitive they needed to initiate organisation-wide digital transformation, motivating implementation through a proof-of-concept; a digital channel direct to the customer. The company decided to partner with BSG to innovate and evolve their business model to adapt. They opted to establish a separate business unit, an innovation hub, that would focus on creating customer value through digital solutions implemented using iterative, Agile delivery methods.

The digital innovation hub lay the foundations for large-scale digital transformation in the organisation, allowing the client to respond to market disruption and changing customer needs more effectively. BSG was able to contribute to the success of this through our proven track record of digital transformation experience. This ensured quality delivery and big picture thinking at each point in the implementation.

BSG’s prior experience of Agile delivery and transition methods positioned BSG to implement the hub’s first digital offering in an efficient manner, mitigating the risk of budget and time overruns and wasted resources.

BSG supported the client on the journey and broke new ground with the online application tool, which was an industry first. This new online vehicle finance application tool will empower customers to take control of the credit application process in a way that was previously not possible. Customer experience was enhanced through transparency, as customers are informed of their credit status and advised how to improve it. The solution personalised the application process, allowing the ability to structure a deal in a way that best suits individual needs. The success of the system was witnessed through an increase in the number of successful vehicle credit applications.

As a result of this successful proof-of-concept the company had the learnings, frameworks and peace of mind to roll out the Agile methodology across the organisation. Over time this will allow for waste reduction and solutions that are fit for purpose, resulting in notable cumulative savings. These lean and Agile methodologies will allow faster innovation in future, increasing the company’s ability to competitive in an ever evolving market.