The leasing business volume is on the rise states the annual Global Leasing Report 2019 by the White Clarke Group and the World Leasing Yearbook. The report says that North America (the US, Canada, and Mexico), Europe, and Asia accounted for US$1,282.73bn (95%) of the global leasing business volume in 2017. It was increased by close to US$183bn from 2016 – a 16.6% growth. This North American marker is followed immediately by China (US$265.68bn), UK (US$92.45bn), Germany (US$78.32bn), Japan (US$60.47bn), and France (US$49.78bn). Other regions that have their share of the pie include Australia/New Zealand (US$31.5bn), South America (US$17bn), and Africa (US$5.7bn).1
Does this tremendous growth mean leasing is easy?
Absolutely not. Many challenges plague the lessor: thin margins due to rising competition, increasing customer demand for greater flexibility and convenience, evolving regulatory and legislative requirements, mounting operating costs, inefficient processes and need for necessitating innovation.
Additionally, the companies might be using slow, scattered, and disparate tools (systems) for managing their leasing process and contracts. Various departments might be logging in and entering (and re-entering) the same data manually in different systems. Because of which, the time taken to apply for client’s sign off on the deal might be delayed. Moreover, the salesforce might be dedicating too much time for “internal formalization” of the contract rather than searching for new customers and growing the revenue.
The leasing sector lacked innovation until the recent adoption of digital technologies. The digital transformation involves automation of customer journeys, partnership processes, payment schedules, financing contract signature, customer’s verification, and so on. Therefore, the solution deployed should provide easy launch, integration and configuration possibilities to support fast-changing market trends.
There could be a complete service solution offered
Digital technologies can help companies manage the entire lease/loan lifecycle process from the proposal stage to the expiry/termination. It can help open more sales growth opportunities through solution’s adjustment to various types of leasing services as well as possibilities to expand the product portfolio. It can enable to make better business decisions due to operative and accurate real-time information and clearly defined processes.
With only one solution you can increase customer satisfaction and loyalty due to flexible, rapid accurate care and support. You can have all in one – cover and optimize both – leasing and back office – processes: contracts’ management, purchase management, monthly invoicing, coverage of receivables, reporting and other processes.
Download the guide "How to adapt to the leasing business market? First steps." and find out what are the first steps for adapting to the rapidly changing leasing business market.