Payment plan providers for the F&I industry offer strong returns and a compelling diversification strategy for banks seeking to alleviate their dependence on traditional commercial and industrial (C&I) lending. Payment plan providers (aka warranty finance or VSC finance), like other specialty finance niches, are attractive to banks because of the relatively high yields, low losses, and short duration. Private equity firms, too, are attracted to the sector because of the high returns and opportunities to ultimately sell to commercial banks.