Digital contracting adoption among equipment finance providers dipped 4.5% in the first quarter of 2025, according to new data from Wolters Kluwer’s Equipment Lease Finance Digital Transformation Index.

While the quarter-over-quarter decline reflects caution amid ongoing economic uncertainty, the index still showed a 7.3% increase year-over-year and a 25.5% gain since Q1 2021—evidence that the sector’s long-term digital trajectory remains intact.

Wolters Kluwer attributes the recent slowdown to heightened market volatility. February saw a spike in business uncertainty, with NFIB’s Uncertainty Index reaching its second-highest level on record.

“In light of the recent decline in business confidence, it is more important than ever to continue digitizing back-office workflows and processes,” said Eric Capehart, associate director of market strategy for Wolters Kluwer’s Digital Lending Solutions. “Digitization remains key to streamlining operations, reducing costs, and improving decision-making—critical goals even in uncertain conditions.”

The quarterly index tracks digital transformation progress across back-office finance processes, offering equipment lessors and service providers a benchmark for industry adoption trends.

For many firms, this data confirms what they’re already seeing: deal volumes may shift, but the imperative to modernize infrastructure doesn’t go away. If anything, the tools that support speed, flexibility, and compliance become more valuable when market conditions tighten.