Releasing the company’s annual report and financial result for the year ending September, Mr Higgs said creating simple and effective ways for lenders to meet their compliance responsibilities was paramount.
MTF took a large step forward by introducing electronic data capture.
"Uptake of the technology has been better than anticipated and by the end of September, 45% of loans were originated using the platform."
The dealer-owned co-operative reported a profit before commission and other gains of $45.4million for the year, slightly up on the $45.2million reported in the previous corresponding period (pcp).
The underlying profit after tax was $7.9million, down from the $8.1million in the pcp.
Unrealised loss on fair value of financial instruments totalled $1.2million compared with $1.8million last year, to provide a reported profit of $7.2million from $6.9 million in the pcp.
Chief executive Glen Todd said sales increased 8.2% and performance was strong in the second half of the year. The car lending market generally remained competitive, reflected in the market share reducing to 11.6% from 11.9% in September last year.
Operating expenses, excluding bad debt, as a percentage of assets under administration held steady at 2.8%. MTF continued to focus on strong cost management, while investing in areas to ensure the business’ future success, he said.
Total assets increased by $30million, or 5.3%, on the back of strong second-half sales. Finance receivables accounted for the increase, up $23.1million.
At balance date, arrears of 31 days or more were 0.65%, below internal benchmarks and well below industry averages. The increase from 2015 was due to modified internal arrears management practices and timelines in line with the changes to the Credit Contracts and Consumer Finance Act 2003, which came into force in June last year, Mr Todd said.
Mr Higgs said MTF had become a multi-channel business with motor vehicle dealers and franchisees since the establishment of the franchise network in 2007.
The franchise channel was experiencing strong growth and profitability and MTF was committed to developing the franchise system to become best in class.
Motor vehicle dealers were MTF’s traditional distributors. While MTF’s share of the market had been falling, the company was committed to continuing to support the channel.
"MTF aims to reignite support through this channel by focusing on providing technology that makes it easier for dealers to transact with MTF and by giving them an alternative to our traditional full-recourse lending option."
Earlier this week, MTF and Turners announced an exclusive financing deal.
In his report, Mr Higgs made mention of the Sportzone case held last year, when the Supreme Court dismissed the appeal by Sportzone Motorcycles and MTF.
MTF was disappointed with the decision but acknowledged the decision clarified the legislation for consumers, shareholders and the wider finance industry. MTF had confidence the legislation could now be applied evenly and fairly by all industry participants.
"This year has been one full of challenges and distractions that, now they are firmly behind us, mean MTF can focus on strategic initiatives to ensure MTF remains a market leader in the consumer finance industry."
