Asset finance brokers banking on tech to improve customer journey

Looking at why tech has a role to play, the panel of experts identified several areas where tech delivers benefits: meeting and managing compliance requirements; enhancing training and education; improving distribution tools and driving impartial behaviours; and reducing administrative overhead and inefficiencies.

“Tech with a purpose”

Reluctance to engage with the latest tech is not, according to Tom Perkins, director and co-founder of brokers Charles & Dean, down to any concerns about tech putting brokers out of a job or adversely affecting customer relationships.

“Technology is there to enhance and enable, although obviously there is no one size fits all solution and individual brokers’ needs and expectations compared to large operations are very different. But the main barrier is cost anxiety.” Perkins explained.

And for Andy Taylor, sales director with lender Haydock Finance, the key is “tech with a purpose”. The most important question to address is where does broker expertise add most value.

“A lot of tech is looking to solve problems I’m not aware I’ve even got. What tech can help with is the straightforward deals, leaving brokers with more time to spend on the deals which do need time – the more complex ones where the broker really needs to understand what the customer wants to achieve, “he pointed out.

That view was endorsed by Astrid Michael, head of sales for the asset finance division at United Trust Bank who sees the value in using tech for straightforward transactions rather than the value added deals. “We expect brokers to keep good records evidencing the customer journey from the regulatory and compliance aspect and tech is hugely beneficial there,” she noted.

Digital first

As to who will be using tech, Taylor pointed out that as the younger generation moves up through the ranks of asset finance operations and the focus turns to SMEs, conducting business via apps and tech will become the norm as this matches their own expectations.

Digital audit trails are useful for evidencing compliance and best practice in conduct towards customers, so it is not surprising that 85% of webinar attendees think customers and vendors will expect to interact digitally with brokers in the future. Perkins said this will help remove bias and inconsistencies in decision-making and demonstrate impartiality.

“Younger brokers potentially have not had the same level of training or experience in origination as more established brokers. Pre-qualification tools really help to support them in assessing creditworthiness and matching customers with an appropriate lender,” Michael agreed.

The critical issue is how the broker community identifies the “pain points” where implementing tech brings greatest rewards. “We’ve adopted deal categorisation, so for low friction, and lower level skill interactions we use as much tech as possible. That leaves brokers more time for clients where there’s the opportunity to add value by acting as a point of information and a guide,” Perkins pointed out.

Build to integrate

Jason Hurwitz, sales director (Europe), with event sponsor NETSOL Technologies, who is the ex-head of product and strategy at Aldermore, pointed out that increasing the decision of when and where to employ tech is not a binary one, where brokers have to be “all in” in all areas of the business.

“What we are aiming to do, with our cloud-based, app-driven offering, Appex Now marketplace, is to provide the core pieces of the puzzle but acknowledge that how they are used will vary from broker to broker. With a modular base and a series of apps like building blocks, you can start with an isolation application and grow with it,” he explained.

Often, as Hurwitz acknowledged, the challenge for brokers who build their own tech platform comes when they interact with lenders and have to re-key information. NETSOL’s approach uses API connectivity to avoid that duplication.

“Traditionally NETSOL has focused on lenders but our new suite is built with the capabilities to enable brokers to access tech systems as and when they need them, and on a subscription basis,” he said.

That view has resonance for the broker community – in a poll of attendees, 86% agreed tech needs to be affordable and deliver value without spending heavily on configuration and tech teams.

Edward Peck, AFC CEO, stated: “The large attendance for the webinar shows brokers are thinking seriously about tech and looking for cost effective solutions to allow them to grow their business. Tech suppliers are responding with modular offerings which can be built up over time, so the focus is on identifying which element of operations to address first.”

AFC’s UK summer conference on 6th June at etc. venues, County Hall, London will explore choosing and using tech in the asset and motor finance markets. For more details, visit the event website at https://afcconferenceuk.com/assetfinanceconnect2024/en/page/home