Wheeler Business Consulting:
Automation, Data, and Efficiencies
The fall convention season in the commercial equipment leasing and finance industry re-affirmed that the industry is going through a technological transformation. The industry continues to embrace automation, innovation, and creativity. The industry, which has by many measures been behind the technological learning curve for years, is being forced to take major leaps forward to accommodate the demands of both vendors and end-users. An executive who, in his personal life, can buy products via his phone and have them delivered within hours, or buy insurance, sign mortgage papers, or car loans via a thumbprint on his I- phone, is not going to be satisfied with a commercial equipment purchase and finance process that takes days, or even weeks, to complete. The current decision makers (and definitely the decision makers of 2020) are demanding a better buying (financing and leasing) experience than is generally offered in today's market. All industry participants (banks, independents, captives, origination companies, and investors) will be required to take a huge step forward, or face being left behind in the next 18 to 24 months.
In the 1990's and early 2000's, automation was about speed - processing applications faster and scoring small ticket transactions. (The 24-hour credit decision transformed into the 2-hour decision.) However, the documentation and funding process remained virtually the same.
From 2008 through 2015, automation was focused on operational efficiencies and saving time on credit decisions, documentation, funding, and portfolio management activities. Automation allowed many participants in the commercial leasing and finance industry to increase funding activities without the need of additional backroom personnel. (In many cases, back-office staffs were significantly reduced as volume increased.) E-documents began to be accepted and many participants felt as if they were on the cutting edge of efficiencies. Systems for back-office accounting and portfolio management were significantly enhanced and statistics were readily available at a click of the computer mouse. Participants enhanced their data collection, but the analytics of that data were antiquated or simple ignored. Other industries have effectively utilized data to their advantage, while commercial finance and leasing participants have fallen behind in their use of data analytics.
Currently, automation is pivoting to the sales and marketing processes. Companies are using automation to interface with all stakeholders in "real time." Finance and leasing companies are making better decisions with more verifiable information. Technology is being developed to provide predictive analytics, better client buying experiences, more secure documentation, and significantly better marketing campaigns - based upon verifiable buying patterns of existing and potential clients. The industry is beginning to use the collected data to develop competitive advantages and to support meaningful value propositions. The industry is beginning to use the vast collected data to determine the best use of marketing dollars, to employ capital more efficiently, and to attract better partners. Forward thinking companies are rolling out dynamic platforms which will disrupt the industry overnight.
THESE ARE EXCITING TIMES FOR THE COMMERCIAL EQUIPMENT LEASING & FINANCE INDUSTRY.
(Don't be left behind.)
Wheeler Business Consulting works with
banks, captives, independents, originators, investors, and service providers in the industry. The consulting services revolve around how clients are leveraging their current systems (automation and technology) and more importantly, how they are preparing for 2025 through the development of better automation and more efficient processes. The objectives include: improving the vendor's and end-user's experience, developing better products, offering more value, and funding stronger assets. Wheeler Business Consulting
provides training, strategic planning, and acquisition services. Scott Wheeler is available to discuss your long-term strategy, to assist your staff to maximize outcomes, and to better position your organization in the market.
Comments and suggestions are always welcome.
Scott A. Wheeler CLFP
Wheeler Business Consulting LLC
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Below are links to our recent survey on originators' production numbers and compensation.
The survey is a powerful tool for recruiting new originators and motivating existing professionals in the industry. The potential for individual professionals and originating teams is strong. Additional information including
Compensation Structures and Origination Channels
can be found on the following links:
Please do not hesitate to call Scott Wheeler with any questions regarding the survey.