During the recovery period from the Covid pandemic, the equipment leasing, and asset finance industry have continued to evolve. Consumers have increasingly adopted digital technologies due to the pandemic, and leasing companies have adapted and served them quickly. Also, Equipment finance software is becoming increasingly intelligent, scalable, and agile. Digital lending, online business, automated payments, and digital wallets are becoming increasingly popular among customers.
In addition to ease of leasing, digital equipment leasing software solutions along with modern-day technologies like mobility and APIs (Application Programming Interfaces) enable equipment leasing. And asset finance organizations to offer a variety of innovative products and services to their customers.
Evolving business priorities
As organizations are striving to deliver growth, efficiency, and customer experience, we are seeing an increase in cyber threats. Which has forced organizations to tighten up their focus on cyber security and customer privacy. Increasingly, customers are moving from mere financial prosperity to financial wellness. And this has led financial organizations to realize the importance of building long-term financial security and wellness for their customers.
Digital disruptive equipment finance players continue to disrupt the financial industry with their innovative products as an interesting development. A collaborative approach through open leasing and embedded finance has further opened new innovative services for customers, often seen as more productive.
Organizations must keep sustainability as a top priority due to a growing concern about carbon footprint and global warming.
What is in focus for 2023?
These are some of the key technologies that will shape leasing organizations’ outlooks to meet evolving business demands in the coming year. By combining these themes, we can build a solid foundation for growth and efficiency. Provide a superior customer experience, and explore new products and business models.
Environmental, societal and governance steps into the spotlight
As sustainability becomes a global mandate, organizations are increasingly embracing it in their day-to-day activities. Whether it is the leasing of equipment or automobiles. So, The banks will use it as an opportunity to expand their businesses through the introduction of green lending products. Among other things, green lending products are aimed at reducing greenhouse gases, developing renewable energy and other environmentally friendly initiatives.
As carbon trading gains momentum, companies and other parties will be able to buy and sell credits that allow them to emit specific amounts of carbon dioxide.
Developing and strengthening their equipment leasing software platform for tracking, measuring, assessing, and reporting sustainability initiatives as part of leasing organizations’ ESG (Environmental, Social, and Governance) (Environmental, Social, and Governance) (Environmental, Societal and Governance) initiatives.
Newer currencies and payment alternatives
There has been an increase in the adoption of Decentralized Ledger Technology (DLT) beyond Bitcoin and cryptocurrencies and this trend will only strengthen in the coming years as these technologies become more mature. By disintermediating payments, clearance and settlement processes. This technology is expect to continue disrupting and gaining increasing adoption in the financial services and leasing industry. So, Using blockchain, securities, loans, digital assets on metaverse, customer information. So, Trade finance and KYC (Know Your Customer) checks will be made easier, resulting in greater transparency, and preventing fraud.
The future of leasing – new interfaces and customer segments
Leasing organizations could target new customer segments and develop new interfaces.
The metaverse could become a new destination for leasing companies since it follows where its customers go. So, Digital leasing is expect to gain traction. Companies have started providing basic virtual reality apps for basic leasing functions. Aside from providing an immersive experience, metaverse leasing could introduce new products to finance and insure digital assets in a virtual environment. More possibilities could be opened if virtual reality worlds could be access across industries. Including leasing and finance, automobiles, entertainment, utilities, and more.
Among the new customer segments that may gain traction are those for the underprivileged (financial inclusion), and the young and small businesses (SMB leasing). Also, These segments will be able to easily access loans and finance, insurance. And other leasing products as digital makes access more inclusive for all. Digital wallets and BNPL (buy now, pay later) options are and will continue to gain in popularity.
These trends are expect to dominate the priorities of equipment leasing and asset finance industry organizations. Also, The market they operate in and the position that they enjoy shall drive their individual priorities. The future is certainly interesting and engaging, to say the least.
Fuelling critical finance decisions with predictive analytics
Data-based predictive analytics are essential for companies to make informed business decisions. Additionally, it can assist them in understanding their customers better, marketing their products, accordingly, forecasting revenue, understanding market conditions, and determining creditworthiness for customers.
Also, This process requires you to make the most of the wealth of data your business produces by mining and analyzing the right data. If companies can collect and visualize data innovatively. Also, They can identify interesting patterns, strategies, and predictions with the right equipment finance software.
Smart use of data and modern-day equipment leasing software enable the use of innovative technologies. Like fraud detection by using machine learning techniques that interpret payment patterns and identify suspicious activities. And it helps in risk analysis by predicting bad economic conditions, bad investments, and delinquent customer behavior.
Business process optimization through intelligent automation will continue
The year 2023 will see a continued effort to improve legacy systems, eliminate manual processes. And close process gaps by combining equipment leasing software with intelligent automation. So, A growing number of companies are using low-code systems in combination with robotic process automation (RPA) to automate business processes. And reduce the need for manual intervention or specialist IT skills. With AI (Artificial Intelligence) becoming integrated into process automation. Also, Low code tools will help business users automate more sophisticated tasks. And DevOps teams manage the complexity of modern application development.
Headquartered in Philadelphia, USA, Odessa is a software company exclusively focuse in the leasing industry. The Odessa Platform powers a diverse customer base globally, providing end-to-end, extensible solutions for lease and loan origination and portfolio management. Odessa facilitates business agility through rich feature sets including low-code development, test automation, reporting and business intelligence to ensure organizations can more effectively align business and IT objectives. Learn more at www.odessainc.com