As bicycle mobility gains traction within society, spurred by a growing emphasis on sustainability, innovative financial solutions are being deployed to support this shift. A prominent player in this field, JobRad, a Freiburg-based firm, has been at the forefront of promoting company bike leasing, a model akin to traditional company car leasing. This approach not only facilitates an eco-friendly form of commuting but also provides significant tax advantages, enabling employees to save up to 40 per cent when acquiring a new bike.
Since its establishment, JobRad has successfully introduced over 1.5 million individuals to bicycle commuting. The company operates through its central leasing entity, JobRad Leasing GmbH, contributing to its mission of enhancing eco-mobility. Recently, to bolster its refinancing strategies, JobRad has turned to asset-based refinancing models.
This development relies heavily on securitization, a financial process that involves aggregating various financial assets such as loans or leases into a new investment product, specifically asset-backed commercial paper (ABCP). However, the process is complex, demanding meticulous data management, adherence to reporting standards, and eligibility requirements. In response, JobRad sought to automate the creation of a robust asset portfolio to ensure its first securitization transaction was both feasible and highly digitised, aligning with the technological ethos of the JobRad Group.
The company enlisted the expertise of BearingPoint, which provided its Securitization as a Service solution to assist JobRad Leasing GmbH in navigating its inaugural securitization transaction. The collaborative team engaged in workshops to delineate the data needs requisite for market transparency. This foundational step was vital for the comprehensive documentation essential for identifying and assessing the financial assets earmarked for securitization.
Following the initial workshops, the team defined the pertinent business logic and then configured a technical platform tailored to include JobRad Leasing’s specific data, business events, and required reporting formats. Emphasis was placed on aligning the reporting capabilities to ensure the precision and thoroughness of data. The project's deliverables also included the creation of detailed templates for corporate reports regarding funding operations, enabling compliance with regulatory standards.
As the project progressed, BearingPoint integrated the securitization platform with JobRad’s existing systems and workflows, facilitating a smooth transition aimed at maximising operational efficiency. Monthly reports will be supplied by BearingPoint throughout the transaction, utilising data sourced from JobRad Leasing via the new interface to ensure optimal execution of the securitization.
Donald Wachs, Global Leader of BearingPoint Products, commented, “Data is essential for JobRad to finance its sustainable solutions for eco-mobility in an efficient manner, particularly when it comes to securitization. We are very pleased that BearingPoint’s Securitization as a Service solution enables JobRad to meet the challenging capital market requirements for data quality and data transparency as it contributes to a stable funding, improved liquidity and efficient risk management.”
Utilising BearingPoint’s Securitization as a Service has significantly improved JobRad Leasing GmbH's data management capabilities, enabling it to adeptly handle the intricacies of its inaugural securitization. Heightened automation has resulted in notable gains in time and resource utilisation, alongside expedited access to essential reports. The firm now enjoys enhanced liquidity and robust risk management, accompanied by continuous visibility into leasing transactions, which aids in compliance and investor transparency.
Benjamin Kräutter, Team Leader Treasury at JobRad, expressed satisfaction with the collaboration, stating, “Working with BearingPoint on our first securitization transaction has been a very positive experience for JobRad Leasing GmbH. With BearingPoint's solution, we were able to significantly simplify and streamline our processes and data management to meet our capital markets reporting requirements. As a result, we have been able to further broaden our refinancing base - bringing us one step closer to our goal of putting people on JobRad.”
JobRad Leasing GmbH has been part of the JobRad Group since its inception in 2019, serving as a bank-independent leasing entity that collaborates exclusively with employers in the JobRad network. On the other hand, BearingPoint is a consultancy with a global footprint, offering services across consulting, products, and capital, and has established itself as a leading advisor for various industries.
Source: Noah Wire Services