Hitachi Capital (UK) is considering developing finance for businesses and individuals engaged in providing home information packs, according to David Swift, group head of marketing
Swift says the company sees the Hips market as a possible area of opportunity that could encourage cross-selling between Hitachi Capital's (HC) consumer finance and insurance business lines.
As the company is looking to expand both its direct to consumer as well as its b2b business, Hips is seen as one of a number of areas HC could become involved with in future, Swift says.
However, there is still a barrier to entry in terms of trying to develop a business model that will provide profit on the current estimated average £750 Hip price, he says.
"For us there would be set-up costs to consider, as well as other costs."
Any decision is likely to rest on developments in the so-called hub space, where recent M&A activity has seen the likes of Xit2 acquired by Canadian firm MacDonald, Dettwiler and Associates (MDA) as the latter looks to take advantage of what it sees as greater requirements to link together parties involved in property deals - such as solicitors and surveyors - ahead of next year's introduction of Hips.
Another funding angle may be on the issue of surveyors themselves, Swift says. Hitachi Capital already funds some professional training, and the required number of additional surveyors the Hips regime is estimated to demand could open up a further specialised market for financing training in regulated activities.IFAonline
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