Wolters Kluwer released a first quarter analysis from its Equipment Lease Finance Digital Transformation Index, revealing that the rate of adoption for digital contracting increased 19% month over month and 28% year over year. The moving four-year trend continues to show digital adoption growth of 118% since Q1/20.
Much of this growth is being driven by business spending, particularly small businesses, where investment is gradually shifting from retrenchment—after nearly two years of businesses cutting back in anticipation of a recession that never came—to a more offensive stance. For example, investment in “intellectual property products” (i.e., software, R&D and digital media) has far outstripped capital expenditures for new plants and equipment this cycle.
The Equipment Leasing & Finance Foundation recently released its March 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market increased for the third consecutive month to 55.2, up from the February index of 51.7, and the highest level since April 2022.
“The equipment finance industry continues to reshape the way it handles transactions with businesses in all industries, and our commitment to embracing digital tools underscores our dedication to innovation and excellence for these lenders,” Tim Yalich, head of motor vehicle strategy for Wolters Kluwer, said. “By accelerating the shift toward digital contracts, we are not only optimizing internal operations but also resetting the bar for seamless transactions in the equipment finance ecosystem.”
To learn more and to access additional data insights from the Wolters Kluwer Equipment Lease Finance Digital Transformation Index, click here.
