Evolution Funding Group acquires Automotive Compliance

Evolution Funding Group Acquires Automotive Compliance

Evolution Funding Group (“Evolution”), the UK’s largest automotive finance and digital commerce platform, has announced the acquisition of Automotive Compliance, a leading FCA-regulated provider of compliance services and systems to the UK motor retail sector. The transaction is subject to regulatory approval.

Founded in 2008 and based in Gloucester, Automotive Compliance provides regulatory oversight, governance, and compliance technology to over 1000 dealerships across the UK. The company supports dealers who are directly authorised by the FCA as well as those operating under an Appointed Representative structure, and is recognised for its strong brand, specialist expertise and comprehensive compliance systems.

The acquisition forms a key part of Evolution’s strategy to build a fully connected, end-to-end platform for the automotive finance and retail market. Evolution already offers a broad suite of technology-enabled solutions, including brokered motor finance, direct-to-lender capability, digital retail tools, and dealer commerce systems through Click Dealer. The addition of Automotive Compliance completes the platform’s regulated capability, allowing Evolution to integrate compliance more deeply into dealer and consumer journeys.

Automotive Compliance will continue to operate as a standalone legal entity within the Group, with its leadership team remaining in place during the integration period, ensuring continuity for customers and partners. Evolution will invest further in the business to enhance its systems, expand service capability, and support growth across independent retailers, franchised groups, OEMs, and digital marketplaces.

Lee Streets, CEO at Evolution Funding Group, said:

“This acquisition is a hugely exciting moment for Evolution. Automotive Compliance brings the final piece of our platform vision to life, enabling us to offer a truly end-to-end solution for dealers, lenders and partners. They are one of the most respected compliance providers in the industry, and we’re pleased to be bringing their talented team and expertise into the group. Their knowledge, systems and experience strengthen us in all the right areas, and together we’re creating a more connected, compliant and innovative ecosystem for the automotive market.”

Paul Speakman, director at Automotive Compliance said:

“Joining the Evolution Funding Group is an exciting step for Automotive Compliance. We’ve spent many years building a trusted, respected compliance service for dealers, and this partnership allows us to take that to the next level. Evolution’s scale, technology and forward-thinking approach give our team and our dealers new opportunities to grow and innovate. We’re proud of what we’ve achieved so far, and we’re looking forward to what we can now achieve together.”

Paul Guy, director at Automotive Compliance added:

“Our goal has always been to make compliance clear, effective, and aligned to the realities of motor retail. Becoming part of Evolution allows us to strengthen that work with more scale, better tools, and wider capability behind us whilst playing a central role in the Group’s vision for integrated, compliant dealer and consumer journeys. It positions us strongly for the future and the growing regulatory focus across the market. We’re excited to be joining a group that shares our values and commitment to supporting dealers with the same practical, no-nonsense approach we’re known for.”

Evolution Funding Group is backed by investment from Carlyle and LDC.

Marshmallow Partners with Evolution Funding to Unlock Motor Finance for UK Newcomers

Marshmallow Motor Finance

Marshmallow, the tech-driven unicorn best known for disrupting the car insurance space, has announced an exclusive partnership with Evolution Funding to bring motor finance access to migrants in the UK. The partnership enables dealers to fund deals for customers who would typically be declined by traditional lenders, opening up new opportunities for both consumers and the dealer community.

As a fintech on a mission to make migration easier, Marshmallow is taking a uniquely sophisticated approach to risk and pricing, recognising that newcomers to the UK often lack the traditional credit footprint required by mainstream finance providers. This underserved customer group can now benefit from fairer, more accessible motor finance, allowing them to purchase vehicles through dealer networks with confidence.

“Our mission has always been to make moving to the UK easier and more affordable,” said Oliver Kent-Braham, Co-Founder and Co-CEO of Marshmallow. “Expanding into motor finance is a natural next step. With over 10 million migrants in the UK, there’s a clear gap to address. We found that fewer than 1 in 10 of our New to the UK customers accessed secured car finance for their most recent car purchase, far below the equivalent rate for those born in the UK. This shows that most UK Newcomers are effectively locked out of the car finance market. Our partnership with Evolution Funding means we can deliver real impact at scale: helping dealers approve applications they might have previously rejected, while giving customers a smoother experience and better outcomes.”

The partnership adds Marshmallow to Evolution’s extensive and diverse lender panel, reinforcing the company’s position as the UK’s leading used auto finance platform. Evolution’s unique position at the centre of the motor finance ecosystem – connecting dealers, lenders, and partners through its platform and technology – makes it the ideal launch partner as Marshmallow expands into the sector.

Lee Streets, CEO at Evolution Funding, commented: “We’re proud to welcome Marshmallow to our lender panel. Their innovative approach aligns perfectly with our platform model. Importantly, it was our analysis and intelligence that helped shape this opportunity, proving the scale of the unmet need and ensuring we can deliver inclusive solutions responsibly. By combining Marshmallow’s unique credit models with our distribution, insight, and lender diversity, dealers now have an even greater ability to serve customers with complex credit profiles.”

Marshmallow enters the motor finance sector with the same energy and innovation that made it the second-fastest growing company in Europe (Financial Times, 2023). Founded in 2017 by twins Oliver and Alexander Kent-Braham and David Goaté, the company has served over a million customers – the majority of whom are UK newcomers – and continues to grow, with over 600 employees across London and Budapest.

Click Dealer Launches New Website

Click Dealer launch new website

We’re excited to announce the launch of Click Dealer’s refreshed website, built and delivered by the Evolution Funding Group marketing team. This is more than just a new look – it’s a sharper expression of what Click stands for today and where the brand is heading next.

This isn’t a rebrand. Click Dealer remains the trusted partner that dealers know – but now with a website that tells their story with greater clarity, cleaner visuals and a renewed focus on how their solutions help solve real world dealer challenges.

From a brighter take on the signature orange, to a stripped-back design and clearer messaging, every detail has been considered to better reflect Click Dealer’s purpose and ambition. The site moves away from listing features and shifts towards demonstrating outcomes – enabling more meaningful, consultative conversations with dealer partners.

This has been a true team effort. The refreshed brand, website build, and written content were all created by the Group marketing team, working closely with Click’s product and marketing leads, developers and stakeholders. It’s a great example of what happens when creative, strategic and technical minds come together with a shared goal.

Duncan Josey, Chief Strategy Officer at Evolution Funding, said:

“I am so proud of the team who have come together to launch a website that truly reflects the brilliance of Click and tells the story of their fantastic portfolio. This website clearly shows why Click Dealer are market leaders. Well done all!”

Explore the new site at clickdealer.co.uk and see how the refreshed brand is helping to drive stronger conversations, deeper partnerships and a clearer voice in the market.

This launch reflects how we’re levelling up across the Evolution Funding Group – creating confident brands that are aligned to our mission and built to support growth.

 

Evolution Funding Responds to Commission Disclosure Practice Changes

Commission Disclosure Practice Changes Evolution Funding Guidance

On the 25th of October 2024, the Court of Appeal handed down its judgment in the cases of Johnson v FirstRand Bank Limited, Wrench v FirstRand Bank Limited and Hopcraft v Close Brothers.

In response to the Judgment, Evolution Funding carried out a full review of how to ensure compliance with the new ruling for its dealers, lenders and customers.

This led to changes in Evolution’s processes and systems to create an enhanced commission disclosure consent journey. The updated journey addresses the heightened need for full transparency regarding informed consent, commission disclosures and additional duties.

Evolution has produced a guide that provides a summary of the key takeaways, how they are responding to support dealers’ businesses, and key actions dealers may need to consider.

N.B. This guide does not provide legal advice. If you are in any doubt about your obligations, you should seek legal advice, and this guide is provided purely for information and guidance.

View ‘Commission Disclosure Practices Update’ Nov 2024

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Evolution Funding Awarded for Digital Innovation Excellence

Evolution Funding wins Digital Innovation Award at MF25

Evolution Funding wins ‘Digital Innovation of the Year (Front Office)’ at the Motor Finance Europe Awards 2024.

Evolution Winner of MF24 Digital Innovation of the Year Award

This year marked the 10th annual Motor Finance Europe Awards, recognising and celebrating innovation, talent, and service delivery in the motor finance space in Europe. The celebrations were held in Frankfurt, Germany, and included the opportunity to network with dealerships, lenders, and like-minded service providers.

Alan Smith presented with MF24 Digital Innovation of the Year Award

The Digital Innovation of the Year (Front Office) award highlights Evolution Funding Group’s trailblazing technological presence in the auto finance space. Focused on ClickFinance, a software collaboration between Evolution and sister company Click Dealer, the awards submission highlighted ClickFinance’s unique ability to enhance and streamline the vehicle finance experience for dealerships and their customers, leading to a significant increase in finance penetration.

The judges’ said:

“Meeting customer needs, enhancing the customer experience, and adapting to market changes are essential for motor finance professionals. The judges noted that the winner addresses these challenges by providing a used car-buying platform that integrates seamlessly into dealer websites, offering a comprehensive suite of digital solutions for automotive dealers.”

This award is ClickFinance’s second recognition this year, having won ‘Best Technology Partner’ at the Car Finance Awards 2024. Our deep-rooted relationship and collaboration with our sister company, Click Dealer, help bring our revolutionary digital finance offering to the forefront of the auto finance industry.  

Sarah Simpkins, Marketing Director, commented:

“We are thrilled to receive this recognition for ClickFinance in the technology category. Our vision is to lead the transformation of the auto finance ecosystem through innovative technology, and ClickFinance—born from the collaboration between Evolution Funding and our sister company, Click Dealer—plays a pivotal role in realising that vision.”

We would like to congratulate Click Dealer as we look to the future with excitement as we continue to reach new heights. Finally, a huge congratulations to the other winners of this exciting event and the work we all pursue to drive change in the industry!

Winners at the MF24 Awards

Click here to read more about the event and view the full list of winners.

Evolution Funding Strengthens Executive Team with New Group CFO

Mat Hanson
Mat Hanson

Evolution Funding has appointed Mat Hanson as Group Chief Financial Officer (CFO), a newly created position that will play a pivotal role in driving the company’s long-term value creation plan. Hanson’s appointment is part of Evolution Funding’s strategic efforts to enhance its capacity at the Group level and support its growth objectives.

Hanson will oversee key aspects of Evolution’s transformation and strategy, including mergers and acquisitions (M&A) and potential international expansion. He will also oversee key stakeholder and shareholder relationships, including those with investors Carlyle and LDC, as well as banking and debt funding partners.

With over 17 years of experience in financial leadership, Hanson brings CFO expertise in technology-driven and private equity-backed businesses. His prior achievements include leading six strategic international acquisitions and a significant private equity sale at Cawood Scientific, as well as driving financial growth and refinancing at Travel Counsellors.

Hanson said:

“I am delighted to join Evolution Funding. The company’s culture, strong values, and impressive track record were key factors in my decision. With Carlyle’s backing and a solid foundation in place, I am confident in the company’s future prospects and look forward to contributing to its continued success.”

Lee Streets, chief executive officer, said:

“Mat brings a wealth of experience in leading financial strategies that drive both growth and operational efficiency. His expertise in managing complex acquisitions and his experience with private equity make him an ideal fit for our next phase of growth. We are pleased to welcome him to the team and are confident he will make an immediate and positive impact.”

Evolution Funding poll reveals dealers are unclear on consumer duty reporting requirements

poll review

A recent poll by used auto finance platform Evolution Funding has revealed that dealers are unclear on the FCA’s expectations of consumer duty reporting.

As the 31 July deadline approaches for dealers to complete their Consumer Duty Annual Board Report, Evolution polled its dealers on their understanding of the requirements.

889 dealers responded, with a significant number either unaware of the requirement to produce a board report or not knowing they must produce their first report by the end of July.

When asked if they were comfortable with what the report should include, such as content, format, and management information, 76% of respondents said they weren’t.

Sam Osborn, Evolution’s head of risk and compliance, said:

“One year into consumer duty, it’s evident that dealers, especially smaller independent ones, need better support and guidance to meet the duty’s requirements, alongside improved benchmarking for general consumer duty standards.

“Principles-based regulation necessitates interpretation, demanding significant resources. This is challenging for smaller dealerships where time and specialist roles are scarce.

“Dealers are committed to serving their customers well, but knowledge gaps exist. It’s crucial that brokers and lenders offer direction and resources, leveraging their expertise and specialised teams.

“In addition to the technology and compliance processes we have in place, Evolution is dedicated to providing resources and guidance to help dealers meet their regulatory obligations. Our Consumer Duty Resource Hub offers extensive support, and we will continue to update it with new information.”

Click here to visit our Consumer Duty Resource Hub

Autotrader veteran Duncan Josey moves to Evolution Funding

Duncan Josey

Used auto finance platform Evolution Funding has appointed Duncan Josey to the newly created role of chief strategy officer.

Josey brings over 21 years of experience across key business roles at Autotrader, including commercial director, digital marketing director, and key accounts sales director.

As part of the executive leadership team, Josey will lead the development and execution of strategic plans to achieve Evolution Funding Group’s goals of digitising, automating, and enhancing the consumer auto finance experience. A key focus will be advancing and leveraging the group’s ecosystem and digital platform.

Lee Streets, chief executive officer at Evolution Funding, said:

“From Autotrader’s early days as an analogue business to the digital giant we know today, Duncan has been at the centre of Autotrader’s radical transformation. As such, with his wealth of experience, he is well placed to accelerate Evolution’s similar journey to develop our ecosystem proposition and commercialise our data offering. We are delighted to welcome Duncan to Evolution as we drive forward to becoming the auto finance platform of choice.”

Josey said:

“This is an exciting move for me, and I look forward to working with the Evolution team. The automotive industry finds it hard to take advantage of modern advances in technology due to a fragmented and complex ecosystem. Evolution’s innovative approach to using technology to overcome that fragmentation and connect consumers and partners via their platform puts them in a unique position to transform the industry. I am delighted to be joining Evolution on that journey of transformation.”

A Trailblazing Night at The Car Finance Awards 2024 for Evolution Funding

Evolution Funding wins ‘Best Broker,’ ‘Best Service for Dealers,’ and ‘Best Technology Partner’ at the Car Finance Awards 2024.

Evolution Funding wins Best Broker

This marks the ninth consecutive year that Evolution Funding has won ‘Best Broker’. This award came from an entry that focused on 2023’s global investment from Carlyle, launching Evolution Funding into a new era with a redefined Purpose, Vision, and Mission, equipping us with the tools to connect the auto finance ecosystem with our award-winning technology.

Evolution Funding has been awarded ‘Best Service for Dealers’ for a second consecutive year. This entry focused on our Signature team and their achievement of £68.1m totalled advances in 2023, demonstrating our unique proposition in the high-value vehicle market.

Winning ‘Best Technology Partner’ emphasises our strong partnership with our sister company, Click Dealer. Together, we bring ClickFinance to life and transform an intricate car finance process into a streamlined, customer-focused journey.

Best Technology Partner judges comments

The awards were held on the 15th of May in The Monastery, Manchester. Surrounded by astounding architecture, The Car Finance Awards was a night to unite with like-minded businesses in an ever-changing industry, highlighting and representing the achievement of best practices and reaching new heights.

We want to thank Credit Strategy for hosting such an incredibly successful night.

Click here to view the full list of winners

Evolution Funding Accelerates Growth with Acquisition of Creditas

Acquisition Announcement May 24

Evolution Funding has exchanged contracts to acquire motor finance broker Creditas Financial Solutions, subject to FCA approval. This strategic move marks another milestone in Evolution Funding’s growth trajectory and underscores its commitment to expanding dealer access to the group’s finance platform, technology, and broad lender panel.

Acquisition Announcement May 24

Photo shows l to r: Lee Streets (Evolution CEO), Katie Hayes (Evolution COO), Andy Shaw (Creditas MD), Teresa Jagger (Creditas Risk & Compliance Director), and Phil Kerr (Creditas Finance Director).

Founded in 2007 by Andy Shaw and headquartered in Leeds, Creditas employs 60 staff and oversees four Appointed Representatives. Taking an innovative go-to-market approach, Creditas has leveraged commercial advantage and market share by uniquely championing an appointed representative regulatory business model in motor finance.  

Creditas will continue to operate under its own brand as a subsidiary of Evolution Funding Group and with its existing management team at the helm.

Evolution has completed several acquisitions as part of its expansion plan, including automotive Software-as-a-Service provider Click Dealer in 2021 and the motor finance broker Motion Finance in 2023. Evolution secured majority investment from global private equity firm Carlyle in July 2023, leading to significant reinvestment in the company’s platform, technology, and digital capabilities.

Lee Streets, CEO of Evolution Funding, said:

“The acquisition of Creditas is highly complementary. With little overlap between Creditas and Evolution Funding Group’s dealer partners, it will grow Evolution’s footprint with independent retailers. At the same time, our technology, processes, and partnerships will enhance Creditas’ proposition for dealers, maximising its potential and driving long-term growth across the group.

“We have been impressed with Creditas’ approach to motor finance, the focus they put on building relationships and doing the right thing for consumers, an ethos at the heart of our own operations. We look forward to working closely with Andy and the team to identify further opportunities and harness our mutual strengths.”

Andy Shaw, Managing Director of Creditas, said:

“I am delighted we have joined part of the Evolution Group. Having built Creditas up over the last 17 years now is the time to become part of a much larger entity. We are looking forward to working with Lee and his team moving forward – it’s going to open a lot of new options for the benefit of our dealers.”

Creditas were advised by Peter Williams, David Kendrick, and Fraser Pirie of UHY Hacker Young (Manchester) LLP.