Cautious optimism and green growth: European asset finance rebounds in 2025

The European Asset Finance Outlook H1 2025, brought to you by Asset Finance Connect, delivers critical insights into how the auto and equipment finance sectors are navigating today’s volatile economic environment.

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Key findings include:

• Cautious optimism returns: Despite a backdrop of geopolitical instability and shifting fiscal priorities, lenders are showing renewed cautious optimism – replacing the mild pessimism reported in late 2024.
• Improved borrowing conditions: Falling inflation and six consecutive interest rate cuts by the European Central Bank have eased borrowing conditions, though overall growth remains limited. The ECB projects just 0.9% GDP growth for the EU in 2025.
• Divergence in lender resilience: Banks remain risk-averse, while independent lenders and captives are proving more adaptable – especially in green and technology-driven sectors.
• Green and tech finance lead growth: Strongest demand comes from corporates advancing net-zero targets. Top growth areas include green assets; AI-powered technologies; and renewable infrastructure
• Sustainability as a strategic opportunity: Sustainability remains a major growth lever, but regulatory ambiguity and infrastructure gaps continue to hinder momentum.
• Operational and strategic shifts: Rising compliance costs and increased investment in AI are reshaping lender strategies and accelerating the shift toward value-added services.

The H1 2025 AFC European Asset Finance Outlook H1 2025 captures an industry in transition –leveraging innovation and sustainability to navigate uncertainty and position for long-term success.

Download the European Asset Finance Outlook H1 2025 now by completing the form and stay ahead of the trends shaping our sector.