National Bank of Canada credits commitment to environmental, social and governance principles for success through the pandemic

The pandemic was instrumental in bringing out the essence of many companies, both positive and negative. For organizations that have fostered a culture of people-centric service, supporting their clients and employees through the uncertainty came naturally.

One of those organizations is National Bank of Canada. Their on-the-ground presence and a commitment to auto dealerships ensured the sustainability of their operations, without causing any disruption to established business practices in the automotive sales and financing market, says the company leadership team. 

“Even when they were temporarily closed, the dealerships had our support,” said Nathalie Laforest, Senior Manager Merchant Relations for Quebec and the Atlantic Provinces of the financial institution. “Our teams regularly made calls to inquire about needs and address any requests, offering informed solutions.” 

“The managers of partner-dealerships also observed this personalization of interactions during the pandemic, while our interaction continued to be applied in person when circumstances permitted,” said Laforest. “This strong presence allowed us to mentor new recruits hired by dealerships that experienced significant staff turnover during the pandemic.”

The company was equipped to deal with challenges even before the pandemic, as “commitment to environmental, social and governance” (ESG) criteria was implemented as an integral part of the management ethos of National Bank of Canada, says the company. 

“The bank has a team entirely dedicated to ESG objectives, which reflect a strategy of sustainable development and responsible investment, linking a company’s financial performance to its environmental and social impact,” said Christian Turcotte, Director of Retail Products and Financing Solutions, based in Montreal. Designated as a top employer by the institution that promotes diversity and inclusion in Canada, National Bank of Canada leadership says it is proud to share its mission: making a positive impact on peoples’ lives. 

“National Bank also has one of the largest business development teams in the country in consumer-goods financing,” said Laforest, “A unique dynamic that brings together many employees in the field across Canada.

“Part of our role is to develop relationships with car and RV dealerships from the Pacific to the Atlantic to promote the variety of our financial programs.” ­— Natalie Laforest

“Part of our role is to develop relationships with car and RV dealerships from the Pacific to the Atlantic to promote the variety of our financial programs,” said Laforest. “Proposals that refer to great agility and demonstrate an availability that is recognized in the industry.”

“This presence is matched by customer support where our advisors, financial analysts and disbursement specialists are accessible to dealers daily,” said Laforest. “We are known for our prompt service. We see this efficiency in the field during our regular dealership visits. Customers are pleased to be able to count on a quick response.”

These initiatives also work towards a greener economy. Committed to many UN global initiatives, National Bank joined the Net Zero Banking Alliance and is aiming for net zero emissions by 2050. These projects include waste management, greenhouse emission reduction and environmental risk prevention.

National Bank of Canada was founded in 1859 to offer financial services programs to individuals, businesses, and institutional and government organizations across Canada and around the world. As a major Canadian financial institution, it is also one of the most profitable banks in the world based on return on investment, said Turcotte.

“Socially, we want to enrich communities by maximizing the potential of individuals in the community. This notion takes into account the well-being of our employees and the community. Through sponsorships, donations and fundraising, we pursue this commitment in several initiatives across the country,” he said.

In terms of governance, National Bank primarily focuses on a robust risk management structure, says the company, targeting responsible business practices. This culture aims to promote long-lasting relationships with customers, employees, and their communities from coast to coast. It’s a policy that puts people at the heart of its actions. 

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SERTI, an IT company and DMS provider in Canada, is one such example. I connected with Francis Gingras, Executive Vice-President at SERTI, to explore the evolution of their dealership software during the crisis.

Earlier this year the company celebrated its 45^th anniversary. For SERTI, the pandemic is a driver for new technology tools integrated with dealer management systems.

“We operate in an area where changes are rapid,” said Gingras. “You have to be proactive to stay relevant and constantly in control of new technologies to develop effective means to integrate them into existing systems.”

This challenge, particularly amid COVID-19, is what is causing the push for technology to accelerate and help dealers stay in touch with their customers more effectively.

Progress & challenges

SERTI moved to a newly-constructed building equipped with the latest technologies. The reason they moved has to do with the speed of increasing demand for software that is continuously becoming more agile and efficient — a situation that also illustrates the challenges facing the industry.

To stay relevant, management system vendors need to be able to keep up the pace with change, no matter how frantic. The Montreal systems developer, which already employs nearly 215 people, intends to increase its number of developers by at least 50% over the next few years.

“The product suites resulting from research and development (R&D) target new characteristics of mobility and web interfaces. These are even more user-friendly sales support tools intended for car dealerships,” said Gingras. “From online appointment booking functionalities to more advanced electronic payment devices, the approach aims to deploy and integrate complete solutions for customers.”

“The offer to dealers is now much more diversified,” Gingras added. “It responds to a new range of needs. The possibility for an Internet user to buy a vehicle online without having to go to a dealership raises the height and the seriousness of these anticipated challenges.”

Online commerce

Gingras said the implementation of a fully online sales process is currently hampered by the legislative framework in Quebec (among other provinces). But the pandemic has the potential to become an ally, in that it can help modernize these transaction methods.

“Legislative changes will be needed to bring this ambition to life,” said Gingras. “Several stages of the sale will have to be modified to allow for it to be entirely online.”

Setting-up the vehicle model, providing a price to the customer, and evaluating the trade-in can very well be done online today. But the most important element — the signature for the transaction — must take place in the dealership.

The government is admittedly more permissive at the moment due to the constraints of COVID-19, but this openness remains an exception applicable on a case-by-case basis.

It is an issue that other provinces are also struggling with, though COVID-19 may help pave the way for these changes.

(NB: Marc Beauchamp is a Montreal-based freelance writer. This article was originally in French.)

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Leader Auto Resources (LAR) inc., North America’s largest car dealer buying group, celebrated its 35th anniversary in the fall.

The theme of the celebrations was “from one generation to the next”, a mindset referring to the many succession and consolidation challenges the franchised dealer world faces.

Celebrations were held in Toronto, Gatineau, Montreal and Moncton with dealer principals and general managers of the dealership members of the buying group.

“[It was] a huge achievement worth celebrating” said member dealerships, who are also shareholders of this sizeable co-op. “No other program or offering across the continent can come close to the dynamics LAR has been able to modestly but very effectively organize,” they added.

In fact, the global approach instilled by this buying group has allowed them to create ties with the big guns of the industry: the Canadian Automobile Dealers Association (CADA), Corporation des Concessionnaires d’Automobiles du Québec (CCAQ), the CarrXpert banner, service department planners and builders, paint manufacturers and other companies involved in a number of dealership services.

Being part of TECAR, a 13,000 dealership-strong international buying group, adds to the strength of this powerhouse.

LAR started as a simple but innovative company and is now the biggest franchised new vehicles dealer buying group in North America

CONTINUOUS IMPROVEMENT

“The business, through the help of its loyal and faithful dealer members, is now the biggest franchised new vehicles dealer buying group in North America,” said Robert B. Issenman, president of LAR.

“This rings true in terms of sales, profit, number of dealer members, geographic reach or even the scope and diversity of the products we offer. Today, the growth has reached new heights with over 1,600 dealerships being served through distribution centres in Montreal, Quebec, St. John’s, N.L. and Albany, N.Y. And we serve any dealership, no matter which brand they represent, what size their business is or where they are located.”

Even though results have been outstanding, this seems to be only the tip of the iceberg.

“The most amazing aspect is there are still many areas we haven’t developed yet that are totally accessible,” added Issenman.

“Considering the scope of the transformations the automotive retailing business is going through, LAR’s adventure is set to last. The reason is pretty simple: we see and understand the need to change, to adapt and refine our business in sync with the changing reality of the dealership and we do so with our members’ full support. We make sure to do so while keeping in mind our founding values of integrity and quality we have been known for all along, set as they were by our founders 35 years ago.”

CELEBRATION IN MONTREAL

After having celebrated in many other cities, LAR brought its 35th anniversary celebrations to Montreal on Nov. 17, inviting over 120 dealerships, as well as many industry insiders.

“LAR is now 35 years old! We are here tonight to take a break, make a small retrospective look at the past with pride, but also look at the future with a renewed energy,” said Issenman to his guests. “LAR started as a simple but innovative company and is now the biggest franchised new vehicles dealer buying group in North America.”

CARRXPERT GROWS OUTSIDE OF QUEBEC

LAR has won the mandate, following a new partnership agreement with the CCAQ to promote and develop the CarrXpert banner outside of the province of Quebec.

LAR will expand the vehicle repair banner using the same strict guidelines, criteria and vision having made its success in Quebec. Maurice Roy, general director of CarrXpert, is expected to lead the project.

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SERTI is deploying its SaaS solution across the country.

Following a successful pilot-testing program held in April, SERTI is deploying its Software as a Service solution across the country.

Becoming the preferred solution for Canadian dealerships, the Software as a Service solution helps reduce computer ownership and maintenance costs, including those related to networks, software or other licenses. Its use helps Canadian dealerships save money and enjoy a better user experience, while having access to Quebec’s most popular management software.

The popularity of Software as a Service, also known as SaaS, is now a given with a growing number of businesses opting for this solution.

SaaS allows one to widen and optimize a computer system’s functionalities while at the same time rendering it more flexible and optimizing its performance in line with the needs of a specific dealership or group of dealerships.

SERTI says the SaaS approach has been designed to help users be more efficient, and have more flexibility as they go through their daily tasks, while returning savings to the dealer principal.

Francis Gingras, vice-president of Business Development, SERTI

To illustrate this, Francis Gingras, SERTI’s vice-president of Business Development, explained: “In the past, such a solution would be deployed on-site, on a dedicated server. The dealership would then need to acquire said server and related equipment as well as be responsible for its maintenance, keep the server up to date, maintain the various software related to the server usage while staying on top of the various licenses and upgrades needed,” said Gingras.

“SERTI’s data shows most businesses would not allow enough resources to stay on top of this, be it from an update standpoint or simply by allocating an adequate budget to it.” Plus, most dealerships simply do not have the proper expertise to handle the required recurring maintenance of this complex system as computer maintenance is simply not part of a dealership’s regular daily tasks and expertise. “A dealership’s resources need to be dedicated to other more lucrative tasks than to maintain a piece of equipment, like the sale and service of vehicles as well as proper customer service,” he says.

Gingras added the SaaS solution now offered by SERTI answers this need, allowing employees at a dealership to dedicate themselves to what they do best: serve customers and sell vehicles.

ADAPTING TO NEW REALITIES
An internal study made by the Business Development Bank of Canada (BDC) has shown software used in the cloud as “one of the best technology for growth and saving for any small and medium enterprises.”

According to SERTI, this has been confirmed on-site within many industries.

“In developing its SaaS solutions, SERTI is offering a way for dealerships to answer their technology needs while being flexible and able to adapt to any new evolution in their needs,” added Gingras. “SERTI is doing so while offering a solution that is more economical from an initial investment standpoint than a traditional system. Available anytime, anywhere, even through personal devices, it allows dealerships and dealer principals a safe and easy access to their data.”

Through this new solution, the dealership has access to a technological solutions environment that is always at the top technology-wise.

“This service is perfect for any business expansion and growth of our customers as new users and new modules can be added on an as-needed basis,” adds Gingras. “Our system adapts to our customer’s needs and changing reality quickly, as it is designed to be flexible in a way only a cloud-based system can be. Another huge benefit of our SaaS solution is smaller dealerships now have access to solutions which were previously out of reach because of the high costs of the equipment needed on-site. Now, all that is needed is a high-speed Internet connection and our cloud-based solutions are within reach.”

A POWERFUL PLAYER
In business since 1975, SERTI is an important provider of dealership management software.

“Our system, reaching every manufacturer, has a very high car and heavy trucks dealerships penetration rate across the country,” continues Gingras. “We have been the leader in Quebec for the last eight years, and we service over 700 automotive dealerships across the country with 465 within Quebec.”

The reputation of SERTI is well known, but the company doesn’t want to rest on its laurels. The company wants to follow the technological evolutions to innovate and serve its dealerships even better. To do so, it is investing over two million dollars annually to improve its solutions and maintain its systems infrastructure in both its data centers; installations equipped with optimal computer systems security and redundancy.

“This technology investment philosophy illustrates SERTI’s evolution and improvement mindset and our SDS solutions since our beginnings,” says Gingras.

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