28 June 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

Idea Bank uses GPS for pay-as-you-drive car loans

06 January 2017  |  7127 views  |  0 London cabs

Poland's Idea Bank is aiming to shake up the auto lending market with a new pay-as-you-drive model that uses GPS to track drivers to calculate their monthly payments.

The Happy Miles model sets a price - which varies depending on the vehicle - for every kilometre driven. A GPS device automatically sends data to the creditor company and at the end of each month the rate is multiplied by the total distance travelled and a small fixed cost is added.

Idea Bank is initially concentrating on car loans but says that the method could also benefit people and firms looking to buy and rent trucks, agricultural machinery and construction equipment.

The bank uses the example of a sales rep for a small firm who gets the flu and is unable to work for two weeks. Because the car is not used, instalments plummet and the firm is protected from liquidity problems.

Łukasz Domański, Happy Miles PM says: "We believe that the pay-as-you-drive model will turn the tides for many entrepreneurs. Not only it allows for adjusting financial obligations to the company’s cash flow; it also brings additional benefits to having a GPS device installed in a vehicle. The idea of car loan per kilometre may appear especially attractive to companies owning fleets, or freight companies."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Uber and Zopa team on car loans for drivers

Uber and Zopa team on car loans for drivers

06 May 2015  |  8540 views  |  0 comments | 21 tweets | 13 linkedin
Tesco Bank introduces telematics-based car insurance policy for young drivers

Tesco Bank introduces telematics-based car insurance policy for young drivers

26 June 2013  |  6925 views  |  0 comments | 3 tweets | 5 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.finastra.comvisit vasco.com/news/PSD2-compliant-solutionsvisit wavestone-advisors.co.uk

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
11339 views comments | 4 tweets | 5 linkedin
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
8874 views comments | 19 tweets | 34 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8313 views comments | 9 tweets | 6 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8289 views 0 | 4 tweets | 2 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job