Fleet News

Bank move heralds boost to personal motoring schemes

HALIFAX'S move into the fast-expanding UK contract hire market is likely to result in Britain's third largest bank selling own-branded personal leasing products through its high street outlets. With around 21 million customers, a network of more than 2,000 outlets and the Halifax Direct telephone banking service, both Lex Vehicle Leasing and Halifax believe a variety of 'innovative retail financial services' can be launched.

The Halifax's core business of mortgages and liquid savings generate 77% of pre-tax profits, but the bank aims to increase its other activities so that they contribute 50% to its profit with the provision of motor finance as a key part of the strategy. However, the Halifax believes it could be up to two years before it develops a portfolio of products to bring to the market.

When Halifax does launch its portfolio of personal leasing products through its retail networks the back office management of vehicles will be undertaken by Lex Vehicle Leasing, which has its own personal contract purchase scheme - Lex FreeChoice.

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