Equipment finance companies looking to stay competitive in a digital world are recognizing the value of investing in technology upgrades, according to the 2016 software guide released by the Equipment Leasing and Finance Association.

Whether to meet rising customer demands, satisfy changing industry regulations, leverage data analytics or gain an advantage amid increased competition, industry companies are taking steps to improve their IT systems and making a solid business case for the investment.

The guide highlights the leading software solutions for the industry and outlines some key technology trends for equipment finance companies in 2016, adapted from the ELFA’s Business Technology Performance Index. Findings include:

• The equipment finance industry continues to close the digital transformation gap. While the equipment finance industry has been a slow adopter of digital technologies due to the constraints of working with legacy platforms, strong recognition exists for capturing digital capabilities via replacement of back-end systems while continuing to make improvements on front-end workflows.
• Replacement of front- and back-end systems remains a top initiative for equipment finance companies in the near future. Front-end systems generally refer to originations, or the activity related to a transaction from the time of application to booking, including credit underwriting and documentation. Back-end systems generally refer to servicing, or the period after the booking of a transaction and includes accounting, customer service, collections, end of term and asset disposition.
• Effective digital strategies offer competitive advantage across equipment finance companies’ value chains. These include improvements in operational efficiencies, product innovation and access to new channels and markets.