credit or even a Honda-branded credit card. That card or line of credit can be used to pay for all in-car purchases, which can be made through the dashboard screen. What are borrowers likely to purchase? First, they can purchase services from Honda itself (think: BMW letting drivers activate heated seats for $18/month). There are a whole host of in-car features that consumers may want to use occasionally, such as cruise control when embarking on a road trip. A services model allows the Hondas of the world to continue nurturing the customer relationship long after the car has left the lot. Now imagine using that same line of credit or Honda-branded credit card for other purchases, such as gasoline, charging, or paying for drive-through meals. Imagine an app, selected from a Honda app store and accessible from the dashboard screen, that allows drivers to track miles and purchases for work, down to the client level, to streamline their expense reports or business tax filings. Imagine an app that tracks driving habits, which drivers can then send to their insurance companies in order to obtain better rates. People tend to stick with the same brand of mobile phones when they upgrade because they like and are accustomed to apps they’ve installed. I can see the same phenomenon occurring with cars once there is a robust apps store for each brand (a development that seems inevitable to me). In order for the Honda Financial organisations of the world to succeed, however, they must “The services and app-based models are still in their infancy, which means there’s still time for auto manufacturers to lead the innovation (and benefit from the opportunity to cement long-term relationships with consumers).” Financial Innovation & FinTech 52 Finance Monthly.
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