Matt Diehl,
Director of Business Development,
LEAF Commercial Capital

Lauren Aron,
Vice President, Marketing Automation,
LEAF Commercial Capital

Mikki Henkelman,
Vice President, Credit and Risk,
Oakmont Capital Services

Garrett Kautz,
Vice President, Relationship Sales Officer, Auto Light Truck,
1st Source Bank

Martin Klotzman,
Director of Marketing and Operations,
Ivory Consulting

Catherine Lee,
Senior Marketing Manager, Commercial Division,
EverBank

Scott Ogden,
Executive Vice President,
SCJ Commercial Financial Services

Camtu Vo,
Manager, Product Development,
DLL

Equipment finance is in dire need of fresh perspectives, and who better to turn to for this essential, out-of-the-box thinking than the next generation of leaders? Matt Diehl caught up with NextGen attendees of Monitor’s Converge 2024 conference to discuss what they need from senior leaders to be successful, as well as their thoughts on what is currently — and what will soon be — important for the industry.

Industry leaders, from those soon to retire to those climbing the ranks, recently gathered in Philadelphia for Monitor’s Converge 2024 conference. Keeping with Monitor’s legacy of propelling the industry forward, the conference was largely centered on innovation. For two days, attendees were challenged to think about how to lead and thrive in a world where continuous change is all but guaranteed. Converge 2024 keynote speaker Peter Hinssen refers to this as the “never normal.”

Our industry will need to adapt to perpetual change driven by a confluence of factors, including a more rapid pace of technology innovation and updated avenues of communication driven by the next generation’s preferences. Employees in earlier stages of their careers will become the change makers of tomorrow, nimbly leading their teams and companies as we collectively navigate this unprecedented moment in time and a regulatory environment that struggles to keep up.

The equipment finance industry has been working diligently to elevate emerging thought leaders and provide a platform to inject fresh perspectives and ensure smooth succession as industry veterans prepare to pass the baton. We serve clients, customers and business partners in a wide range of industries, all of whom will soon have their own NextGen leaders at the helm.

While this transition can be intimidating, it also creates tremendous opportunity for companies capable of reinventing products and processes that embrace the “never normal.” Throughout the conference, attendees were reminded that the exchange of wisdom is not a one-way street and that fostering cross-generational dialogue is important. It is intuitive (and critical) to understand the value of senior leaders passing a lifetime of experience down to the next generation. Valuing and extracting the wisdom within younger employees’ digitally native perspective is more easily overlooked. Companies that successfully achieve both are likely well positioned for the future.

I was fortunate to have an opportunity to speak with many NextGen leaders at Converge. These bright individuals have numerous comments regarding the state of the equipment finance industry today and thoughts on how to prepare for the future.

DIEHL: What is important for equipment finance right now?

MIKKI HENKELMAN: Communication will never go out of style. It has always been important, and now more than ever as we navigate the unknowns of a changing economy. It is essential to keep all lines of communication open as we balance today’s interest rates, delinquency and various other hurdles.

CAMTU VO: From a technology and innovation standpoint, I think a lot of foundational work to prepare for the future stems from data reconciliation, data analytics, data architecture and data transformation — in no particular order. From a people perspective, it’s about pipelining the next generation into leadership positions to allow a smooth transition. We should consider how traditional roles and responsibilities may change in the future. What roles will not exist anymore, and what new ones will emerge? Lastly, it’s important to get everyone to really embrace a growth mindset and confront that change is constant and happening at a faster rate.

GARRETT KAUTZ: Seeking out mentors to learn the many nuances of the equipment finance business is critical to both personal growth and effectiveness as well as the long-term sustainability of the industry.

DIEHL: What will be important for equipment finance in the future?

LAUREN ARON: The acceptance of digital transformation and its importance in our industry, as well as an ability to be agile and swift in evaluating and implementing it, is essential. While we need to be cautious and strategic about where and how we implement it, it will be an undeniably important part of our future. On the flip side, it is just as critical to not lose the human element of our business and continue to grow that aspect alongside and throughout the digital transformation. I think that there are too many people that think it’s one or the other, and there’s a constant push and pull of new versus old. I believe there needs to be an evolution of both, together.

HENKELMAN: One phrase from Converge that sticks with me is the ability and willingness to “learn, unlearn and relearn.” Having the ability to scrap an idea or process if it doesn’t have the desired outcomes or has become stale is okay. Great ideas may work for one company or department but miss the mark for another. What has worked in the past can be helpful for now and into the future, but being open to new or out-of-the-box thinking and having the mindset to unlearn what you have always known, along with the willingness to relearn, will be critical to ongoing success. This is an exciting time for our industry, full of potential for growth and learning.

DIEHL: As a NextGen leader, what do you need from senior leaders to be successful?

SCOTT OGDEN: Future leaders look for more inclusion in their company’s evolution and development. When decisions are made to impact the company, most NextGen want to be in the discussion and hear the reasoning behind it, as they will be the ones left with the aftermath (whether good or bad). I think future leaders are looking for the current leaders to be accepting of the changing tide and recognize the difference in atmospheres. Support from current leaders on innovative ideas and experimentation from the NextGen is crucial to help future leaders develop and mold into strong players for years to come. The NextGen wants support, but they also need trust.

CATHERINE LEE: Roadmaps, key milestones, KPIs and a clear path forward for growth in the industry. NextGen wants to understand what tools they need, what experiences they should seek and what lessons they can learn to help prepare them for a future in the industry. NextGen wants a seat at the decision-making table and to be a part of the conversations.

ARON: I think it’s extremely challenging today to allocate time to innovate. For many employees, the day is filled with meetings and work to maintain the status quo. I believe it will pay off for companies who can incorporate more time for exploration, research and testing of new ideas. Engaging younger employees to help build their organization’s future not only provides them with improved job satisfaction today but also makes them more vested in their career and the company long term. In addition, it will help us evolve as organizations and generate innovation at all levels.

DIEHL: What else is top-of-mind for you regarding the future of the industry?

KAUTZ: NextGen leaders will play an important and growing role as the equipment finance industry evolves with emerging technologies and new product offerings.

VO: Speed. How fast the world moves around us, and the question as to whether we can keep up. Regulation. How much of it will impact us, and does it keep getting harder and harder to manage? Technology. This one excites me more than worries me, as long as we are ready for whatever comes.

MARTIN KLOTZMAN: My main concern for the future of the equipment finance industry is its notoriously slow adoption of new technologies. AI-driven companies could disrupt our market with more robust and forward-thinking products. Organizations need to start experimenting with low-risk AI projects now to build internal expertise and bring higher value products and services to market down the road.

LEE: The equipment finance industry is unique because it hasn’t experienced a massive disruption, yet. Think Uber to the transportation industry, or Netflix to video rentals. What we’ve experienced until now has been status quo, and it’s inevitable that we’re going to experience an evolution in our industry. It’s incumbent for our industry leaders to optimize, innovate and look for all opportunities for growth and improvement, while still enjoying the luxury of this pre-disruption period, because change will come.

In an industry and a world changing as fast as ours, new thinking and fresh ideas aren’t luxuries — they’re necessities. Thanks to NextGen professionals like these, we’ve got both. With the right kind of support and a seat at the table, they’ll be more than ready to put those thoughts and ideas to work as the equipment finance industry continues evolving to serve the needs of both today’s and tomorrow’s businesses. •

Matt Diehl is director of business development at LEAF Commercial Capital.