By Mukul Mittal, Vice President of Industry Solutions, Q2’s leasing solutions
COVID-19 has increased focus on asset financiers’ ability to quickly lend and support small and medium-sized businesses amid the next normal. An estimated 99% of small businesses* in industrialized countries serve as the economic bedrock of their society – it’s critical they receive the financial support they need to survive and flourish.
A handful of lessors who have committed to automation via Straight-Through processing (STP) are able to meet the need of small businesses. The seamless integration achieved via STP allows them to outperform competitors and create new relationships in an underserved and potentially lucrative market.
Our asset finance customers understand that an inevitable shift to digital leasing is taking place. Q2 is working in partnership with them to find simple and effective digital solutions that support stronger customer relationships and underpin the growth of their business.
In my experience, siloed operations and messy legacy systems are at the center of the challenges most asset finance organizations face. This is an area STP will provide results, bringing automation to leasing. Critical to STP is the cloud and other innovative technologies. When put to work, the current leasing mission can be more successful while accelerating longer-term growth plans.
A significant reason STP works so well lies in the API integrations that are built into its processes. These integrations yield faster loan enrollment, rapid movement of information, and quicker decisions—with far less error and risk. They establish an infrastructure that collects, stores, and uses information about customers. A highly personalized approach to leasing will emerge, which is what customers expect today.
STP is the subject of Q2’s e-book, The High Cost of Lending Uncovered. Read it to get more information on how STP can help your leasing operation in the next normal and beyond. Chapter 2 of the eBook includes a case study on a recent STP success—a must-read.