Equipment finance leaders have spent years anticipating a more flexible, digital and customer-driven market. Today, many of those expectations are becoming reality. Replacement demand is gaining momentum as companies revisit deferred investments, while customers are increasingly looking for financing solutions that offer speed, flexibility, efficiency and strategic value.
At the same time, automation, embedded finance, AI, data analytics and more seamless digital experiences are becoming central to how companies serve customers and strengthen their own businesses. For this Monitor 100 roundtable, we asked executives to share what they are seeing in the market today, where they are directing investment and how they are balancing strategy, speed and service while preserving the relationship-driven approach that has long defined the industry.
Industry forecasts point to replacement demand as a primary driver this year. Are you seeing that among your customers, and how are you helping them think through capital decisions in a still-evolving environment?
TINA EICKHOFF: We are seeing replacement demand play out across many of our segments, particularly where aging equipment and deferred investment are converging. At the same time, the environment remains dynamic, from rate volatility to inflation concerns to rapidly evolving technology, so clients are being more deliberate.
Importantly, much of today’s replacement activity is being driven not just by asset age, but by the need to modernize equipment to reduce operating costs and improve efficiency. Newer technologies, whether in automation, fuel efficiency or AI data-enabled equipment, are helping clients lower maintenance expense, reduce downtime and operate more productively. These factors often make replacement an economically compelling decision even in a cautious environment.
Our role is to help clients balance near-term capital needs with long-term flexibility. That includes structuring solutions aligned to equipment life cycles, offering options around usage versus ownership and serving as a trusted advisor to help clients make informed, capital-efficient decisions that best position them for success.
CHRIS ENBOM: We have companies of all sizes and levels of sophistication. Ultimately, whether the company is very large or very small, there are investments in equipment that are deemed to be long-term and strategic for the company where we are serving as a financing partner, and there are equipment needs where the outlook for that particular piece in the fleet is less certain.
As predicted by ELFA members years ago, companies are less married to equipment as “must own” and are much more willing to look at shorter-term usage to gain flexibility in fleet planning, and we are definitely seeing more six-month to 24-month terms on equipment. We are leaning very heavily into this demand with our fleet services group.
MARTIN GOLOBIC: We don’t sit directly in the decision-making process when an end user decides whether to replace equipment or make a new investment, but we do get a front-row seat to what’s happening through the financing activity we see across our dealer, vendor, OEM and distributor partners.
We’re only a few months into our fiscal year, but we’ve seen meaningful year-over-year growth in originations. That tells us businesses are still investing. Some of that is likely replacement demand, and some is companies continuing to invest in growth and productivity despite ongoing economic uncertainty.
Our role is to help our partners respond to that demand by making financing easy, fast and reliable so they can focus on serving their customers.
RICK KURZ: Replacement demand continues to be a meaningful driver of activity across many of the sectors we serve. During the past few years, a combination of supply chain disruptions, elevated equipment costs and economic uncertainty led many businesses to extend asset lifecycles longer than originally planned. As a result, we’re seeing customers revisit deferred replacement plans and invest in equipment that can improve productivity, enhance operational efficiency and support future growth.
At the same time, customers remain disciplined in their capital decisions. While confidence has improved, many organizations are still balancing growth opportunities against evolving economic conditions, interest rate expectations and broader market uncertainty. Rather than viewing equipment acquisition as a standalone transaction, our customers are increasingly evaluating how each investment aligns with their long-term business strategy and cash flow objectives.
Our role is to help clients navigate those decisions by providing financing structures that offer flexibility while preserving liquidity. Whether a customer is focused on replacing aging assets, adopting new technology or positioning for expansion, we work closely with them to understand their operational goals and develop solutions that support both near-term needs and long-term success.
What’s one priority or investment you’re focused on this year to better serve your customers and strengthen your business?
EICKHOFF: One of our primary focuses this year is continuing to modernize the client and vendor experience through embedded finance and fintech partnerships. Many of our vendor partners are increasingly relying on fintech platforms, from purchasing and financing to servicing and maintaining equipment. We see this as a meaningful opportunity to integrate our financing capabilities directly into those ecosystems, meeting customers at the point of need while reducing friction in the process.
By partnering with fintech providers alongside our existing vendor relationships, we can deliver faster decisioning, a more intuitive digital experience and ultimately a more connected solution for our customers.
ENBOM: We are investing in technology (both data systems upgrades and applications/AI), people and equipment to grow our fleet management/rental businesses. We have also opened a new 5-acre location serving customers in the Permian basin in Midland, TX.
GOLOBIC: Without question, the biggest strategic investment we’re making this year is becoming a bank.
We’ve spent several years working toward a national bank charter because we believe it strengthens our ability to serve customers for the long term. It gives us greater funding stability, expands our capabilities and positions us to continue investing in our business regardless of market cycles.
At the same time, we’re investing heavily in technology and automation. The goal isn’t technology for technology’s sake. The goal is to make it easier for customers and partners to do business with us, improve speed and efficiency and create capacity for growth.
We’ve always believed relationships matter. Our focus is on combining those relationships with value-add technology so customers don’t have to choose between great service and a great experience.
KURZ: One of our primary areas of focus this year is continuing to invest in the customer experience across the entire lifecycle of a transaction. While competitive financing solutions remain important, customers increasingly differentiate providers based on responsiveness, ease of doing business and the ability to deliver consistent execution. Another key focus is continuing to leverage the full breadth of Flagstar’s capabilities to deliver a true one-bank experience for our customers. With access to an expanded suite of products and solutions, we can create additional value for the companies we serve — and for the owners we’ve built deep personal relationships with over the years — supporting their growth objectives in new and innovative ways.
We’re investing in both our people and our processes to create a more seamless experience. Our goal is to make it easier for customers and partners to do business with us while maintaining the high-touch service and industry expertise they expect.
At the same time, we’re focused on scalable growth. As the market evolves, we believe the organizations that will be most successful are those that can combine operational excellence, strong risk management and relationship-driven service. By strengthening those capabilities today, we’re positioning ourselves to better support our customers and capitalize on future growth opportunities.
Technology, including AI, is changing how equipment finance companies operate — from the customer experience to back-office processes. Where are you directing your technology investments, and what early results are you seeing?
EICKHOFF: We are directing our technology investments toward initiatives that enhance both the customer experience and operational effectiveness. This includes more efficient decisioning, onboarding improvements and AI-enabled tools that reduce manual work and accelerate cycle times. Our approach to AI is intentional and outcome-driven, focused on reducing friction, improving decisioning and allowing our teams to spend more time on high-value client engagement.
At the same time, we recognize that technology alone is not the answer and that investing in our people is equally critical. We are focused on upskilling our teams through targeted development programs, AI enablement initiatives and hands-on learning opportunities to ensure they have the tools and capabilities to operate effectively. Early results are evident in increased productivity, faster turnaround times and greater capacity to engage deeper with clients.
ENBOM: Our slogan is “AP…the power of personal”, so we absolutely embrace technology efficiencies as a way to improve processes without diluting the customer experience. Obviously, there is a ton happening with technology-driven tools right now. We are never trying to be on the “bleeding edge,” but we absolutely embrace technology that will increase our productivity, accuracy and client experiences.
GOLOBIC: The biggest opportunity we see with technology and AI is creating a faster, simpler experience for customers and partners.
We’re investing heavily in automation and touchless processing to improve speed to decision and reduce friction throughout the financing process.
At the same time, we’re careful not to automate away the human interaction customers value. Technology is changing how customers want to do business. It isn’t changing the fact that relationships still matter.
We’re also continuing to expand embedded financing capabilities and digital integrations that allow financing to happen naturally within our partners’ sales process.
On the AI side, we’re focused on practical applications that help our teams make better decisions, serve customers more effectively and spend less time on manual work. We’re still early in that journey, but we’re already seeing improvements in how quickly we can turn customer feedback into action.
KURZ: Our focus is not simply on adopting new technology for its own sake, but on applying it in ways that improve the customer experience, increase efficiency and enable our teams to spend more time on value-added activities.
We’re investing in digital capabilities, workflow automation, data analytics and exploring practical applications of artificial intelligence across several areas of the business. AI has significant potential to help streamline routine administrative tasks, enhance data analysis, improve decision-making and accelerate certain operational processes. Importantly, we view these tools as augmenting our employees rather than replacing the expertise and judgment that remain critical in equipment finance.
While we’re still in the early stages of many of these initiatives, we’re already seeing improvements in process efficiency, turnaround times and access to actionable insights. Over time, we believe technology will help us deliver a faster, more intuitive customer experience while enabling our teams to focus on building relationships and solving increasingly complex client needs.
Customer expectations around speed, digital experience and ease of doing business keep rising. How are you meeting those expectations while preserving the relationships that have long defined this industry?
EICKHOFF: We’re addressing rising expectations by simplifying processes and embedding financing more seamlessly into the client journey. Whether it’s faster credit decisions, streamlined documentation or point-of-sale financing with our vendor partners, the goal is to make it easier for clients to do business with us while reducing friction end-to-end.
At the same time, we remain deeply committed to the relationship-driven nature of this industry, which continues to be a core differentiator, especially on complex transactions where clients value insight, flexibility and consistency.
Expectations aren’t static. Vendor partners are increasingly looking for embedded, real-time financing solutions that enhance the sales process, while customers expect intuitive, responsive and flexible experiences. By maintaining tight connectivity across both, we can continuously adapt how we deliver, whether that’s accelerating turnaround times, integrating more directly into vendor workflows or tailoring solutions to how clients prefer to buy and use equipment.
ENBOM: We are always talking with customers and mapping the customer experience to ensure we are giving our personal experience. However, there are ways technology can ease processes or make it easier to make business happen, so we are absolutely leaning into these types of technological processes and investing. We are putting a lot into our own data engineering and processes — upgrading from SQL databases to Azure/Databricks to allow us to run more AI tools over our own databases in a more efficient manner.
GOLOBIC: Customers don’t all want the same thing. Some customers want speed and self-service. Others want to pick up the phone and talk to someone they know. Most want some combination of both. Our job is to meet customers where they want to be met.
We continue to invest in automation, digital capabilities and self-service tools because those things matter. But we’re not interested in replacing relationships. Relationships are still one of the biggest differentiators in our business.
KURZ: Today’s customers expect the same level of speed, transparency and convenience from financial services providers that they experience in other aspects of their lives. Meeting those expectations requires ongoing investment in technology, process improvement and operational excellence.
At the same time, equipment finance remains a relationship business. Many transactions involve significant capital investments, complex business considerations and long-term strategic decisions. Customers want efficiency, but they also value trusted advisors who understand their business and can help them navigate changing market conditions.
We don’t view technology and relationships as competing priorities. In fact, we believe the most effective use of technology is to strengthen relationships by reducing friction in the process. By automating routine tasks and improving access to information, our teams can spend less time on administrative activities and more time engaging with customers, understanding their objectives and delivering tailored solutions.
Looking beyond this year, what trends or developments do you believe will most shape the equipment finance industry over the next several years?
EICKHOFF: The continued digitization and automation of workflow processes, the evolution toward usage-based financing structures and the considerable growth of sectors tied to long-term infrastructure and technology. In particular, demand driven by AI and digital infrastructure is creating significant, multi-year equipment financing opportunities that we expect will be a meaningful driver of industry growth and innovation.
As our industry becomes more reliant on technology and AI, it will be critically important to remain grounded in what has always differentiated this business: the strength of our relationships. Technology should enhance, not replace, the trusted advisor role that is central to helping clients navigate important and increasingly complex capital decisions tied to the equipment they need for their business.
ENBOM: I have always said that our business will eventually become more like the credit card business — more automated, efficient and data-driven. This is coming true.
GOLOBIC: The equipment finance industry is going to continue evolving, and I think a few trends are becoming increasingly clear.
First, technology will continue to reshape customer expectations. Customers increasingly expect financing to be fast, simple and embedded directly into the buying process.
Second, competition will continue to put pressure on margins, particularly in the small-ticket space. That means operational efficiency and customer experience will become even more important.
Third, I expect we’ll continue to see consolidation across the industry. Scale matters, especially as regulatory requirements, compliance expectations and technology investments become more significant.
At the same time, more businesses are adopting financing as a sales enablement tool, which continues to expand the overall market opportunity.
The companies that win will be the ones that can balance efficiency with relationships, embrace technology without losing their identity and stay focused on creating real value for customers.
KURZ: The equipment finance industry has consistently demonstrated its ability to adapt to changing economic conditions, technological advancements and evolving customer needs. Looking ahead, I believe several trends will have a meaningful impact on the industry.
First, technology and data-driven decision making will continue to transform how transactions are originated, underwritten and serviced. Organizations that successfully leverage automation, analytics and artificial intelligence will be better positioned to enhance customer experiences and improve operational efficiency.
Second, customers will increasingly seek financing partners that can provide more than capital. As businesses navigate growth opportunities, technology adoption and economic uncertainty, there will be growing demand for consultative relationships and tailored solutions that support broader business objectives.
Third, the pace of innovation across many equipment sectors — including transportation, manufacturing, healthcare and technology — will create new financing opportunities and require lenders to continually expand their expertise and capabilities.
Finally, I believe the industry’s long-term outlook remains very positive. Equipment remains essential to economic growth, productivity and business investment. While market conditions will inevitably fluctuate, organizations that combine strong relationships, disciplined risk management, operational excellence and thoughtful innovation will be well-positioned to succeed in the years ahead.