“The only constant is change”: Dominic Hughes on BPCE’s future

The deal, finalised in March 2025, brought one of Europe’s largest vendor finance businesses into BPCE’s fold and marked the launch of BPCE Equipment Solutions.

Hughes described the transition as remarkably smooth: “The sale was completed on time at the beginning of March – a great start to life as BPCE Equipment Solutions.” While acknowledging the heavy burden of integration tasks, he emphasised that customers saw no disruption and the core focus on vendors and brokers remained intact.

Asked whether the rationale for the deal had shifted amid today’s uncertain economy, Hughes was clear: “In short, no.” BPCE’s co-operative structure – “what you’d call a mutual in the UK” – allows it to pursue long-term growth rather than reacting to quarterly market pressures. The group’s Vision 2030 strategy, with its first pillar of “Forging Our Growth for the Long Term,” places international expansion at the heart of its ambitions, and the acquisition of SGEF is a cornerstone of that journey. “They want to offer solutions globally and viewed the acquisition as an early step,” Hughes said.

That global reach remains vital, even in a world of tariffs and insular politics. Vendors, Hughes argued, need finance partners who understand their business and can deliver consistent solutions across borders. “Every country has different regulations and markets – local expertise is in our DNA – but vendors want to work with as few partners as possible,” he noted. The UK team’s focus remains on vendor and broker channels, with direct business seen as lower-margin and less attractive.

Trade tensions and rising equipment costs only strengthen the role of leasing, Hughes suggested. “If the cost of equipment is increasing, leasing becomes an even more important tool to spread the cost of investment.” At the same time, sustainability remains high on the agenda. While Groupe BPCE’s green targets differ slightly from those of SG, the overall direction of travel is the same: growing green finance volumes while cutting the organisation’s own impact. Hughes stressed that profitability, growth and sustainability are not mutually exclusive.

The choice of name – BPCE Equipment Solutions – signals an intention to go beyond traditional finance. “It reflects our expertise in going beyond hire purchase and leasing, focusing on providing solutions for our introducers,” Hughes explained. Growth priorities will initially align with the needs of existing vendors, with diversification into new sectors to follow. On the much-discussed pay-per-use model, he struck a note of realism: “If I had a pound for every time someone mentioned PPU I’d be a rich man. The fundamental question is who takes the risk on the balance sheet. Vendors are best placed but face their own issues. It remains to be seen how the market evolves.”

Three months in, little has changed on the ground for staff and partners. “People told me they expected something to change after completion, but it felt the same,” Hughes said. That stability reflects both the complexity of separating operations across 14 countries and the clarity of BPCE’s message: growth will be supported.

As for the UK market, Hughes sees resilience in spite of economic headwinds. FLA data shows 4% year-on-year growth to March 2025, even if forecasts suggest limited upside ahead. He points to recent lender exits – Shawbrook, HTB, ABN Amro – but insists that competition remains fierce. “Asset finance is remarkably resilient through good and less good times. We will survive and grow. A crisis gives opportunities to grow.”

Regulation, however, is a growing burden. While the FCA’s intentions are laudable, Hughes believes the framework, especially combined with FOS, has made entering the regulated business market prohibitively expensive. The result, he warns, is reduced choice for customers, though he reaffirms BPCE’s commitment to the broker channel as central to its strategy.

Looking ahead, Hughes remains optimistic, both about the new shareholder and the wider market. With more than 25 years in the UK, the business has endured cycles before. “We’ve lived through many ups and downs and always come out stronger,” he concluded. “The only constant is change.”