The replacement of fuel vehicles with electric vehicles is only a matter of time, according to JP Morgan, and treasuries must consider key ways to adapt.
The article “Four Ways the Energy Industry Can Prepare for the Electric Vehicle Age”, by authors Tristan Attenborough and Alexandre Baudon, says that over 10 per cent of cars sold in Europe are electrically chargeable as of the first quarter of 2021.
In order to adapt to this rapidly changing environment, the authors list customer relationships, cutting across silos, introducing payment platforms and embracing digital upgrades as the key methods that treasuries can utilise to adjust certain areas of their operations, with speed being imperative, or they risk being left behind.
First, a deepening of customer relationships across multiple touchpoints is advised.
“Energy majors will face many new challengers as they battle for their share of the EV marketplace,” the authors say.
“The key to success will be customer-centricity. They must evolve their treasuries to serve customers and fleets at multiple touchpoints, not only the forecourt.”
It is acknowledged that while this will bring a host of opportunities to build deeper relationships, it will also bring raised expectations.
Second, a shift from internal silos in order to enable interconnected payments will allow multiple touchpoints and payment platforms to reach their full potential.
“Transactions are evolving from straightforward fuel purchases to multiple channels in a client-centric mobility ecosystem and treasuries must mirror this new reality. Ensuring these new client touch-points are covered by a single, shared treasury function will help underpin these new B2C strategies,” the authors say.
Third, a pivot towards providing a payment platform will provide customers with a user-friendly experience within a single payment solution.
As electric vehicle drivers will need to charge away from home, the demand for a combined payment platform with multiple payment options will increase.
Finally, embracing digital upgrades is a crucial aspect of thriving in the shift towards electric vehicles.
“The ability of treasury and payments teams to capture new data and provide new insights will be crucial if these new business models are to be explored.”
“Internally, the deployment of Virtual Accounts and APIs will result in centralised visibility and faster feedback on the success of new consumer interactions. Faster feedback means faster decisions, a key competitive advantage for an energy marketplace in transition.”
“It’s often said that data is the new oil. In an age where fuel and lubricants are increasingly being replaced by volts and apps, it seems payments data, underpinned by a single, digital, cross-siloed treasury, will indeed become a key way to ascertain new customer trends and drive revenue.”