Digital Transaction Best Practices are a Competitive Necessity
Each month, the Equipment Lease and Finance Association (ELFA) releases an economic activity survey. This write-up reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector. The most recent report was generally positive and showed that overall new business volume for March 2018 was $9.1 billion, up 2 percent year-over-year from March 2017. Year-to-date, cumulative new business volume was up 12 percent compared to 2017. Talk about great news!
Understanding the Digital Imperative
With this increase in volume, it is imperative for equipment leasing companies to completely transition from paper leasing processes to digital transaction management and embrace today’s financial technology. As you may know, eLeasing enables an improved customer experience, enhances operational efficiencies and eliminates paper-related transaction costs such as printing and shipping.
Because eLeasing increases confidence and speed to capital, there is a growing ecosystem of originators, funders and investors, that are ready to transact in a digital environment. To remain competitive in the equipment lease and finance space, a fully digital leasing experience that covers pre-loan to eSignature and transfer to third parties is essential. Equipment finance leaders who fail to embrace digital transformation will be left behind.
eLeasing: Origination, Execution and Securitization
Once equipment lease documents are originated and executed, paper-based processes are dramatically simplified and digitized. This will eliminate the need for transporting and storing them within a secure warehouse, saving businesses a significant amount of secured physical storage space and facility costs. During the post-signature life of the contract, the financial assets are electronically vaulted in a secure location with easy access to the audit trail and the authoritative copy of the original documents.
- Originate at Digital Speed
- Enhance Customer Experience
- Prevent Documents that are Not in Order
- Eliminate Shipping & Paper Processing
- Increase Back-Office Operational Efficiency
- Possess Assets Immediately on Execution
- Support Existing Funding Structure
- Streamline and Simplify Ecosystem Management Complexity
Digital Transformation: A Significant Driving Force
eOriginal has helped hundreds of companies compete in the digital age. We see the following key trends in Equipment Leasing and Finance for 2018:
FinTechs Rise to Prominence. With the rapid acceptance of online lending by institutional investors, FinTech companies are moving beyond consumer lending and into other structure finance like auto and equipment leasing. This shift is bringing enhanced lead acquisition, user experiences and expedited funding. Are you prepared to compete?
Competing for Millennial Talent. ELFA has been sounding the alarm on the aging population of the industry and the urgent need to attract new talent. National surveys show that the new workforce generation is looking for companies that have embraced digital transformation.
Increased Expectations for Creative Finance Options. Financing across the board is going through a major disruption phase. Meanwhile, technology remains much as most people would expect, placing everything on the table. To survive these disruptions, one must be prepared to be agile and adapt quickly.
Adopting eLeasing technology has never been easier. To learn more about what to consider, please watch our on-demand webinar. You can witness an expert technology panel prepare a roadmap for digital technology and learn what to consider before selecting and implementing a new digital solution. Watch Webinar