back to summary | next article

22 November 2010

by Charles Wheeldon

New tagging system on track

A new verification system for assets held by lessees looks set to become a prominent feature in the motor finance industry.

Horsham-based The Asset Works (TAW) is close to finalising a new tracking system, which allows lessors to trace their assets without dispatching individuals to conduct physical audits.

The company has developed a tamper-proof electronic data tag, which can be attached to vehicles and which cannot be removed without being destroyed. Lessees are provided with hand-held readers, which registers the assets' exact location at the time of scanning. The reader is used to transmit all the data gathered back to TAW's secure web-based management system, where the information can be scrutinised by lessors.

Using 'geo-fencing', unusual or unexpected data results can trigger automatic emails to be sent to the lessor, for example, if fewer assets than expected are at a particular location, or if assets are not located where they should be.

"It's a secure and cost-effective method of protecting the bulk of a lessor's asset base," said TAW director and co-founder Mike Chowney. "Our service allows car dealer financing companies to provide secure inventory audits more frequently, with less interruption to the lessee and at a significantly lower cost compared with existing physical on-site audits. The tags only cost €3 (£2.54) or €4 each - and if a lessee tries to remove one, they will irreversibly damage it."

Finance providers operating a 'red-amber-green' policy will be able to adapt the verification service to fit differing levels of risk. Low-risk lessee might be asked to use the system every fortnight or monthly, whereas 'amber' lessees could be required to submit weekly, and 'red' lessees could be asked to account for stock every day. A weekly scanning service for a dealership averaging 50 cars in stock will cost around €2,750 annually, rising to around €4,500 per dealership to scan each car every day.

Chowney continued: "Since July, we've been thinking about applying our technology to dealerships. We want to work with major manufacturers, such as Ford, VW and BMW, to help them have more confidence that their stock is secure."

For the latest motor finance news, please visit the Motor Finance website.