Explore the future of captive finance with zeb consulting – new podcast episode out now!

In the latest episode of the Asset Finance Connect (AFC) European Equipment Finance Podcast, sponsored by Alfa, AFC’s Richard O’Donohue welcomes Dr. Klaus Strenge, Partner, and Kerttu Alpass, Senior Manager, from zeb consulting for a deep and thought-provoking discussion on the evolving role of captive finance companies in today’s rapidly changing environment.

This episode tackles a topic that’s become increasingly important across the asset and equipment finance industry: Are captives still fit for purpose, or is it time for manufacturers to rethink their financing strategies?

Strenge and Alpass bring decades of combined experience advising OEMs and captives across Europe, and their conversation is rich with practical insights and strategic thinking. They explore how the traditional advantages of captives—like flexibility, deep product knowledge, and stronger customer integration—are now being tested by rising costs, funding challenges, regulatory demands, and shifts in workforce expectations.

A key focus of the episode is the rising cost base that many captives face. From ageing IT systems and complex compliance requirements to increasing operational pressures, the economics of running a captive are under more scrutiny than ever. Strenge outlines the difficult decisions many OEMs are facing—invest in modernising their captive infrastructure, or consider alternative models like joint ventures, outsourcing, or white label partnerships.

Alpass adds another layer to the conversation by discussing the talent crisis within asset finance. As many experienced professionals approach retirement, captives are finding it difficult to attract the next generation of talent—especially without flexible, digital-first working environments. It’s a challenge that goes beyond HR, touching on digital transformation and process automation as key strategies for long-term competitiveness.

The discussion also delves into the funding side of the equation—arguably one of the most complex issues facing captives today. The guests examine the risks and opportunities of funding diversification, whether through bond issuance, parent company support, or even customer deposits (where licences allow). With interest rate volatility and increased scrutiny on capital markets, captives must be smarter and more agile than ever before.

But despite the challenges, this episode doesn’t paint a pessimistic picture. On the contrary, both guests emphasise that captives can still play a vital strategic role—particularly when aligned with the OEM’s broader value chain and sales organisation. Where a captive can provide integrated solutions, superior service quality, and long-term customer engagement, the benefits are still compelling.

Ultimately, as Strenge puts it, there is no one-size-fits-all answer. The future of captives depends on a manufacturer’s strategic mindset, market presence, and ability to adapt.

If you’re a senior leader in asset finance, leasing, or OEM financial services—or just someone interested in how financial strategies are evolving in complex sectors—this episode is essential listening.

Listen now to Episode 4 of the Asset Finance Connect European Equipment Finance Podcast and gain practical insight into the future of captive finance: https://assetfinanceconnect.com/european-equipment-finance-podcast/

Stay tuned and subscribe to the series for more expert-led conversations shaping the future of European equipment finance.