IF you’re a BMW or MINI retailer, you can now only use an Alphabet Partner – or an ALPHERA Partner – for introductions to business customers.
The move was originally announced by Richard Chadwick, Head of Indirect at Alphabet (GB), at the end of the Partner Conference at Gaydon on 20 June prior to consultation with BMW retailers, which has now been implemented across the BMW network.
Hold on - that can’t be right?
Ermm… yes it is. If you’re not an Alphabet Partner, no more introducing to BMW or MINI retailers for business leasing.
It’s the latest instalment of the implementation of Consumer Duty.
“We need full control and oversight of our distribution chain. We need to know where every deal comes from and we need to ensure audit, product understanding and commission disclosure of all parties. This means that we can only allow brokers under contract with us, or our sister companies, to sell, advise or quote on our paper.”
Richard says that the new programme is working well and so far volumes have remained unaffected.
“With widespread access to brokers, we didn’t know where customers were coming from; now we do under this more concentrated and regulated approach.
“Ultimately, the customer gets a better experience – and that’s what all of us at Alphabet, ALPHERA, the retailers, and our broker Partners want.”
Can I become an Alphabet Partner so I can sell BMW lease deals?
Alphabet says that the door is open to leasing brokers who are not members of the Partnership programme.
Currently there are 53 Partners who form Alphabet’s ‘Premiership’, who are all being assessed across a variety of KPIs. These will establish who remains in the premier division and those, ultimately, whose performance means they can no longer be part of the Partnership programme.
“We have new applications; some will make it into our ‘league’ but the overall group of Partners won’t get any bigger in the long run. Over the next few months, the count will reduce to where it is now,” added Richard (above left).
The details of what was required to become a successful Partner were unveiled at Alphabet’s Partner Conference.
Hollie Crumlish, Head of Broker Partnerships, outlined what was required, saying that a scorecard would measure broker performance across key metrics.
This includes volume, maintenance penetration and profitability underpinned by factors such as good client credit acceptance, delivery of paperwork, high standards of compliance, delivery of tacticals, along with the ‘Spirit of Partnership’ epitomised by Edinburgh leasing broker Gofor, MD Iain Bennett receiving the inaugural Spirit of Partnership Award.
Richard added: “We are still committed to the value of exclusivity. If we take on a new Partner, once they pass through a probationary period it means that an existing Partner that isn’t performing so well will be asked to leave. That’s why it’s important for brokers to set high standards of performance which they can deliver on.”
How to become an Alphabet Partner
Alphabet says it only wants to operate with brokers that can deliver against its standards and who are willing to engage with Alphabet’s ancillary products. Importantly, the Partner bit is just that – a Partnership rather than a way of accessing a price. Partners are required to deliver against customer focused metrics as well as deliver volume.
Minimum criteria to become and Alphabet Partner
- A broker must be a BVRLA member and have a high audit score.
- Can demonstrate high levels of maintained sales and have the willingness and ability to comfortably accommodate Alphabet into a funding panel.
- Brokers must trade from an office (not a home office), have a staff structure and be financially secure.
- Brokers must have ‘full permission’ (not limited permission) to operate under the Financial Conduct Authority (FCA) – ie, no Appointed Representatives (ARs).
- Demonstrate a robust and efficient administration process and ideally a market sector specialism without relying on one route to market.
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
1 Comment
Bert
You forgot to mention you have to pay to get on this program!! Is this not a form of monopoly? What about the small leasing companies.