As customer engagement shifts to predominantly online interactions, the asset finance industry must evolve in response. Today, customers expect seamless solutions, speed, and ease of use. More often than not, they are willing to pay more for both rather than wait!
Customers are also using asset finance products and services in a different way. The traditional ownership economy is faltering, while innovative systems of consumption take its place: pay per mile and pay per use, for example.
The wave of digitisation in asset finance benefits the manufacturer and lender, too. Both tangible and intangible assets are becoming increasingly information rich. And so are customer credit cycles. This priceless information source – if captured and interpreted accurately and in a timely manner – will only serve to evolve your product offerings to ensure they are most relevant for your customers at the exact time they need it.
The asset finance industry has traditionally been slower to engage with technology. This is changing and we now see pockets of innovation – but it’s not enough. VP of Industry Solutions at Cloud Lending Mukul Mittal says, “Disruption should be expected as more innovation enters this market. It will take a lot of effort to change because there are many companies that have been successful using the old model for 20–30 years”.
Mittal adds that there are significant opportunities for those companies that act fast, identify the right strategic direction, and offer a compelling digital proposition to win customers’ hearts and minds.
Those companies that adopt technology that focuses on driving value for the customer and enhancing their total financing experience will find there is plenty of room to differentiate their brand and to grow. Those who stick to the old models will meet struggle before they know it.
So, be brave. The time to act is RIGHT now.
We hope you found this blog insightful. Read the others in our Blog Series, Asset Finance, the Digital Age, and Readying for Success: