Part 5/11:

Within the automotive sector, financial services often account for about half of the overall business portfolio, underscoring their importance. Such services help manage industry cycles and stabilize revenues, especially in an industry reliant on large capital investments and recurring sales.

Broader Trends: Tech and Non-Banking Financiers

While established companies like automakers leverage financial arms to support their core business, a different dynamic is at play among tech startups and non-bank entities. Tech companies such as Grab, a ride-hailing firm based in Singapore, have launched consumer loan platforms even before the COVID-19 crisis, despite not yet turning a profit.