BMW Finance – A Pioneer In South Africa.
BMW Financial Services (BMW FS) was the first South African auto manufacturer credit company (also known as a captive finance company) to be established in the country. It was founded in 1990 as a wholly owned subsidiary of BMW Group to provide financing and insurance for BMW and Land Rover vehicles, pioneering this model in the country.
Earlier providers like WesBank (established in 1968) were general hire-purchase banks that later partnered with manufacturers such as Volkswagen in 1995–1999, but they weren’t manufacturer-owned captives. Ford Credit entered the market in 1995, further supporting BMW’s position as the pioneer. BMW FS SA were the pioneers in captive financing in South Africa, starting with the BMW brand, and later expanding to MINI, BMW Motorrad, and ALPHERA Financial Services for other brands.
BMW Financial Services South Africa today, marks a milestone for the books this year as the solutions provider celebrates its 35th anniversary.
History of Financing Innovations
In 1996, BMW Insurance was launched, empowering customers to customise their leasing and finance contracts with the extras that suited them, along with a new retail technology system for credit and debt collection that helped to streamline operations.
In 2000, BMW Financial Services was awarded a South African business financial rating of ‘AAA’ and an international rating of ‘BBB’, cementing its position as a market leader and heralding a series of service and product launches that would propel the division to new heights over the next decade.
With a history of three-and-a-half decades of vehicle finance, the milestone is an opportunity for the company to reflect on its achievements and the impact it has had as a driver of financial activity and inclusion, customer-centric innovation and socio-economic transformation.
The commitment to delivering a customer-centric value offering extends through the power of digital innovation. In 2020, BMW Financial Services went live with its digital sales platform, supported by the brand’s first Business Development Centre to support customers’ online journeys.
In 2022, the division established its first mobile presence via MyBMW App, integrating the MyAccount platform into the mobile app. It is currently piloting with the government’s electronic vehicle registration (eNATIS) platform.
Committed to Shaping a Brighter Future
“Thirty-five years is indeed a significant span of time, and we have utilised it wisely and purposefully. As we celebrate this important milestone, BMW Financial Services reflects on our rich history and current achievements, which serve as the bedrock for our future endeavours. We are already envisioning the profound impact we can create over the next 35 years, a vision made possible by the unwavering dedication of our teams, the strength and integrity of our brand, and innovative ideas that prioritise our brands and the South African community. Together, we are committed to shaping a brighter future,” commented Stefan Schuett CEO of BMW Financial Services South Africa..
