Joe Andries of GreatAmerica Portfolio Services Group discusses the variables driving companies toward third-party servicing in a post-pandemic world.
The equipment finance landscape is changing rapidly, and back-office operations are no exception. In a recent episode of the Monitor podcast, Editor-in-Chief Rita Garwood sits down with Joe Andries, Vice President and General Manager of Great America Portfolio Services. Andries brings nearly four decades of industry experience to the table to discuss the shifting perceptions of outsourced servicing, the “build vs. buy” calculation in a post-pandemic world, and how digital transformation is breaking down old barriers for banks, leasing entities, and captives alike.
Watch the full podcast on YouTube, listen on your favorite podcast channel or read the Q&A below.
Rita Garwood: To start, could you give us a brief overview of where you fit into the equipment leasing ecosystem?
Joe Andries: I’m the Vice President and General Manager of Great America Portfolio Services division. I started my career about 38 years ago with Lion Financial Services, eventually moving to Great America in 2010 to lead their third-party outsourced servicing platform. We are a lease and loan agreement outsourced service provider specializing in third-party servicing for the equipment finance industry. We provide an operational platform that allows banks, leasing entities, and captives to outsource their servicing needs without relinquishing control of their customers.
Garwood: “Outsourced servicing” can mean different things to different people. How do you define it in today’s market?
Andries: It really depends on the client’s specific objectives, so we start with a needs analysis. Our goal is to become an extension of their company. We provide tailored solutions involving people, processes, and systems. While all clients use our systems to house their contracts, the scope of services varies—some use all our solutions, while others only have us perform specific duties.
Garwood: You’ve mentioned that outsourcing has become much more prevalent since the pandemic. What specific variables are driving companies toward third-party servicing today?
Andries: The COVID-19 experience was a major driver. Many companies struggled with the immediate need for business continuity plans and the distraction of getting a remote workforce up and running. Additionally, companies realized that even when their business was paused, they still carried the same fixed costs of an in-house platform. With an outsourced partner, costs are often based on activity, so if business slows, relative costs are reduced.
Garwood: Finding and retaining talent has been a struggle recently. How has the shift to remote work and the “build vs. buy” calculation played out on your end?
Andries: It hasn’t been easy, but we’ve had to get creative. We currently operate with a 50/50 hybrid work model, which has kept us competitive and productive. We also hold “Better Together” days in the office every Tuesday for collaboration. Regarding recruitment, we’ve moved from a reactive to a proactive approach, tracking metrics and starting the hiring process 90 to 120 days before we actually need someone. Our clients don’t have to worry about the burden of adding or retaining employees; we own that responsibility.
Garwood: Can you share a high-level success story of a client who transitioned to your services? What was their “breaking point”?
Andries: It’s usually a result of performance issues, lack of technology, or failing to meet customer demands. We’ve had many success stories involving portfolio transitions where we address existing “skeletons” and improve service levels. Interestingly, our largest client today was a startup. They wanted a turnkey solution to begin originating business within 30 days rather than incurring the fixed costs and long timeframe of building an in-house option.
Garwood: What are some common misconceptions prospective clients have about third-party servicing?
Andries: The biggest fear is giving up control of the customer. Others worry about whether the technology stack is customizable enough, how to monitor our performance, or whether our people will truly understand their customer base. There’s also the misconception that costs are too high because people often only compare systems, rather than the value of the people and audited processes included in the package.
Garwood: Beyond cost savings, what strategic benefits get you most excited when a partnership is running at full potential?
Andries: The ultimate barometer for me is hearing from a client that they wouldn’t be as successful without us. For example, we recently went through a technology upgrade. We handled everything “behind the curtain,” so it required zero effort or cost from our clients, yet they got the full benefit of the enhanced system.
Garwood: For a company handling everything in-house but feeling the strain, what is the first “test case” they should consider for outsourcing?
Andries: It starts with a technology gap analysis. We look at whether our technology stack meets their strategic goals and how it can integrate with their existing front-end or back-end ledger systems. If the technology fits and complements their overall picture, that’s the best test to see if outsourcing is a match.
Garwood: Where do you see third-party servicing headed in the next three to five years?
Andries: I see continued growth and acceptance of the model. Digital transformation has eliminated many of the barriers that existed seven or eight years ago. Integrations are easier, and we can provide daily data extracts and high-touch service via video calls. As long as we stay on the edge of innovation and break down those remaining barriers, there will be ample opportunities for us to grow alongside our successful clients.
