Wolters Kluwer released new analysis from its Equipment Lease Finance Digital Transformation Index, a resource that tracks the rate at which equipment lessors and service providers are experiencing growth in the evolution from paper-based finance back-office processes to digital.
According to the index, the rate of adoption for digitization of back-office documents has increased by 31% over the last four years. However, this rate of adoption actually decreased by 4% over the last year, largely mirroring the sluggish environment for capital spending on equipment.
The equipment lease and finance industry continues to look for digital transformation across the entire spectrum of operations, a key adoption strategy to modernize workflows of processes and equipment purchase documents. This digital finance activity is different from online purchasing in that it represents the conversion of back-office processes from paper to digital assets.
The purchasing experience of business equipment has become more digital, particularly given the critical need during the first few years of the COVID-19 pandemic to transact remotely, and this combination led to the adoption of more digital processes and transactions through digital channels. This trend has continued in the years since the height of the pandemic, although at a slower pace due to the sluggish and turbulent economy, primarily resulting from rising interest rates.
“Equipment purchasing and leasing transactions are being modernized today, with online channels opening every day to make the transaction more efficient,” Tim Yalich, head of motor vehicle strategy for Wolters Kluwer, said. “In particular, lenders and lessors are now looking for seamless, automated and compliant ways to transact and secure the benefit digital offers over paper. Lenders, third-party providers and equipment lessors are now leveraging digital ecosystems that are purpose-built to handle the industry’s origination channel diversity, eliminating the complexities around managing various multi-channel assets post-execution and drastically reducing operational and time costs.”
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