Providing the Resources for Triumphs in TransportationThu, 09/01/2016 - 13:31
Q: What steps will Actinver take to reach the double-digit growth it targets?
A: Sales force specialization has made a huge difference, so continuing to work on that endeavor is essential. Our clients’ experience is also crucial. We are keeping a close eye on potential opportunities to improve customer service. Actinver’s presence, strength and market share continues to grow in the Mexican market, which gives consumers extensive financial service availability and increases our commitment to the local market
Last year, Actinver grew by 38 percent, doubling its leasing portfolio compared to 2014, which we are striving to repeat for 2016. Given the importance of the transportation segment, we are working to increase our participation in these activities. This segment represents MX$1.6 billion (US$95 million) of Actinver’s overall MX$4 billion (US$235 million) portfolio, including sea, land and aerial transportation. Most of our growth resulted from our sales force specializing in different sectors, namely the transport, health, technology, energy and machining fields. Our flexibility differentiates us and having improved our internal procedures, we can quickly allocate financial resources as part of integral solutions to our clients. On top of our competitive interest rates, our rapid responses serve as another driver for our success.
Q: Which aspect of the automotive industry has the greatest potential for improvement?
A: Freight was the sector with the most significant growth for our company in 2015, with machining close behind. Actinver services 50 percent of Mexico’s top 100 transportation companies and we expect to cover the full range of transportation segments by the end of 2016. Although our participation in the passenger transport segment is limited, we have some contracts in the pipeline for Mexico’s northern region. But poor financial professionalization presents a significant obstacle in Mexico’s automotive industry. With proper financial management, more capital could be channeled to these players’ operations at a reasonable rate. When companies fail to comply, risk increases, negatively affecting loan procurement. As a result, the best viable
financial solution is not secured, compromising the clients’ cash flow and future loans. The sooner companies increase their financial savviness, the faster their operations will grow. The owner-operator plan in Mexico further dents our work as financial providers. Financial products are not uniformly understood, which prevents Actinver from targeting certain segments.
Q: To what extent has Mexico advanced in terms of incentives?
A: Incentives are the same, such that leasing still offers the best alternative to asset renewal. The exchange rate is the most influential factor in the industry because most assets are valued in dollars and Actinver’s financial products respond similarly, leading to many projects being put on hold.
Areas of opportunity in light vehicle leasing are numerous but individuals are not yet entitled to fiscal incentives, hindering the transition to a US consumption plan. Nonetheless, by creating a sufficiently attractive model we can collectively build a financial culture that will promote leasing, benefiting both financial entities and individual vehicle users.
Q: How does Actinver cultivate rewarding interactions with fleet management companies?
A: Actinver is certified by the Ministry of Communication and Transportation (SCT) to file heavy vehicle license plates. In addition, we are creating insurance packages with premiums of 0 percent and GPS services, to be released during 2016. The company is channeling its energy toward expanding its portfolio, positioning Actinver as the thirdlargest leasing company in Mexico.
Leaseback is also a popular service among fleet management companies, as it helps these entities recover most of their initial investment while allowing them to continue leasing the asset long term. If the vehicle has a maximum six-month lifespan, Actinver can reimburse 100 percent of the initial investment. We can only engage in this practice if the unit does not exceed that lifetime, in light of the asset’s projected depreciation.