ELFA Software Guide launched

Equipment finance companies looking to stay competitive in a digital world are recognizing the value of investing in technology upgrades, according to the 2016 Software Guide released by the Equipment Leasing and Finance Association (ELFA).

Drivers for additional technology purchases include the need to meet rising customer demands and the requirement to satisfy changing industry regulations. Lenders are also keen to leverage data analytics to gain an advantage amid increased competition.

ELFA’s analysis suggests industry companies are taking steps to improve their IT systems—and making a solid business case for the investment. The 2016 Software Guide highlights the leading software solutions for the industry and outlines some key technology trends for equipment finance companies in 2016.

The association says its research indicates that the equipment finance industry continues to close the digital transformation gap. While the equipment finance industry has been a slow adopter of digital technologies due to the constraints of working with legacy platforms, strong recognition exists for capturing digital capabilities via replacement of back-end systems while continuing to make improvements on front-end workflows.

In the short-term, the critical initiative for equipment finance companies is the replacement of front- and back-end systems. Front-end systems generally refer to originations, or the activity related to a transaction from the time of application to booking, including credit underwriting and documentation. Back-end systems generally refer to servicing, or the period after the booking of a transaction and includes accounting, customer service, collections, end of term and asset disposition.

Equipment finance companies are also looking to develop effective digital strategies in order to offer competitive advantage across the whole value chain. These include improvements in operational efficiencies, product innovation and access to new channels and markets.

The Software Guide is available on ELFA’s website, and some of the themes it explores will be discussed at the 2016 ELFA Operations and Technology Conference, September 12 -14 in Baltimore.