We are living on the edge — and in some ways — have crossed over into what’s known as “Industry 4.0,” or the fourth wave of the industrial revolution. One example of Industry 4.0 is what the market calls the internet of things (IoT), or the growing network of internet-enabled and connected devices we use every day. Examples include mobile devices, home appliances, digital assistants, security systems and automobiles.
We’re more connected now than in any other time in history. That connectivity continues to mature as real-time performance data becomes more widely available. And that’s happening for two reasons: Advances in computing and storage power are accelerating digital transformation and enabling unprecedented scale at a lower cost.
Changes are not only coming for the automotive industry but are already here as we evolve from a hardware-driven industry to one that is software-defined. How much so? Forecasts indicate that 95% of all new vehicles sold globally will be connected by 2030.
That’s less than eight years away.
This exponential increase in connectively will represent $250 billion to $400 billion in incremental revenue opportunity for the automotive industry: remote diagnostics, predictive maintenance, online service scheduling and over-the-air (OTA) purchasing, according to industry experts. Tesla, for example, already offers OTAs, in which they send software improvements to vehicles via a simple wireless internet connection.
Hundreds of billions of dollars represents a lot of opportunity. How can the auto finance industry and OEMs leverage this connectivity, unlock new streams of revenue, and provide a better experience for customers? Where do you even start?
You may recognize the name “BlackBerry” as one of the pioneers of mobile device technology. Or, more recently, you may know Blackberry QNX as the world’s leading embedded operating system for the automotive industry.
BlackBerry QNX operating system (OS) by the numbers:
- Seven out of the top seven tier 1 suppliers use BlackBerry QNX;
- Nine out of the top 10 OEMs use Blackberry QNX technology;
- 195+ million vehicles on the road today use this OS;
- 23 out of the top 25 OEM electric vehicles are designed with BlackBerry QNX; and
- 290+ automotive programs.
Today, BlackBerry — with its BlackBerry IVY intelligent vehicle data platform — leverages QNX as it sets the stage to secure, manage, and optimize vehicle sensor data. The scalable, cloud-connected software offers the automotive industry a reliable and secure way to share insights. Connectivity has provided us with an incredible amount of data. The challenge is deciphering what data is important and for which use cases in order to apply meaningful and actionable insights. With more than 500 million endpoints secured — including more than 195 million vehicles — this technology is transforming the automotive industry.
BlackBerry created an advisory council to help drive and accelerate smart mobility innovation and shape the future of how vehicles are valued, paid for, managed, repaired and optimized. Comprised of leading companies across the transportation and mobility industry, the BlackBerry IVY advisory council’s purpose is to accelerate the creation of high-impact technology use cases and solutions that leverage in-vehicle data. These council members help drive the BlackBerry IVY roadmap, focusing on co-value development with a view to address key pain points that OEMs are looking to solve. Advisory council members invited to join include AWS, GEICO, Azure, Qualcomm, Deloitte, Netflix, Prime Video, Amazon Alexa, Solifi and several others.
As one of the newest members of the BlackBerry IVY Advisory Council and the first finance technology provider, Solifi will serve as the voice and advocate for the global automotive finance industry, which includes OEMs, banks and independent automotive financing firms
With many parts of the broader automotive industry eager for granular real-time and near real-time data sets to determine residual value assessments, maintenance and repair costs, integration with BlackBerry IVY and Solifi’s open finance platform will provide a reliable and secure way to access a broad catalog of vehicle sensor data. As part of the council and working in partnership with leading auto lenders and OEMs, Solifi will provide guidance on what use cases are relevant for the global auto finance market.
Access to rich, real-time data will accelerate the shift to predicted new financing models that are fundamentally changing the way consumers and businesses use and manage vehicle resources. This shift will drive increasing numbers to forego traditional ownership of vehicle assets in favor of pay-for-use or shared ownership financing models.
Some potential use cases that could prove real value to OEMs, lenders, fleet managers and consumers include:
- Offering a deeper analysis of vehicle wear and tear and allowing for a more precise assessment of the current value of the asset. This opens the door to offering customers more dynamic usage-based pricing models;
- Traditional financing models for vehicle rentals and leases are generally limited to metrics such as miles and hours logged and do not accurately capture risk around how the asset was used. Real-time data can provide deeper analytics of how an asset was actually used allowing for flexible and dynamic pricing models for customers; and
- Intelligence from connected vehicles provides a path forward for next-generation automotive financing options and can provide OEMs a means of differentiation in the marketplace such as usage-based subscription or rentals and rewarding good driver behavior.
These are just a sampling of the numerous opportunities of how vehicle consumer data can resolve some of the finance industry’s key pain points.
Shim Mannan is the global head of services sales enablement at Solifi, a global fintech software partner for auto finance (formerly known as IDS, White Clarke Group, and William Stucky & Associates).
Auto Finance Innovation Summit, the premier event for technology in auto finance, returns April 25-26 in San Diego. The event will showcase today’s technology and tomorrow’s innovation-driven opportunities to position your company for success in this fast-paced digital era. To learn more about the 2022 event and register, visit www.AutoFinanceInnovation.com.