Interview with Johan Haeggman, Head of TRATON FINANCIAL SERVICES

How will this look like?

Johan Haeggman: TRATON FINANCIAL SERVICES will be a global multi-brand captive finance provider which will offer financing for customers, dealers, and distributors as well as insurance solutions and additional services. This means that customers will benefit from a brand-specific front office and a common backbone. At the same time, TRATON FINANCIAL SERVICES will be able to use increased funding capabilities to further enhance our customer offer and to build the foundation for future business models. We see, that in the future the importance of offering financial services will be a strategic asset, as it is a key services in a “Transport as a service” world. But also, short term we will benefit from “common back ends” where not every brand has to set up (or pay external providers to set up) brand specific back ends.

Why not doing that in the brand-specific set-up?

Johan Haeggman: The main idea behind the future operating structure of TFS is to combine to best of 2 worlds: maximizing the commercial capacity through brand specific set up in the commercial interface while creating economics of scale by sharing the non-commercial back bone structure. Each TRATON brand will be able to create and integrate their financial solutions into their commercial approach suiting their specific customer interface and value proposition while the benefit for TFS will be in sharing the non-commercial structure. This will create lower operational cost compared to each brand running their own front to back financial service operations. It will also create benefits for higher capacity for funding at better terms, higher development capabilities and faster time-to-market as the brands will be able to utilize the TFS toolbox. Combining a maximized commercial support with an economical non-commercial backbone will create profitable growth and profitable growth creates continues opportunities.