What you need to build a pro-customer, pro-growth leasing business

Organizations in the leasing and finance industry are experiencing a transformational shift. Due to fierce market pressures throughout the industry – digital native customers, complex regulations, and a global pandemic – technology transformation is no longer only a competitive advantage. But an absolute necessity. With the adoption of cloud computing, big data analytics. As well as new and emerging forms of engagement, the leasing services landscape is changing rapidly.

As firms embrace this new era, they are reinventing their customer experience, fostering a new culture of work, optimizing their operations, and developing innovative products. Companies are doing this by utilizing scalable, affordable, and advanced technical and analytical infrastructures that analyze and manage big data quickly to meet the needs of digitally savvy consumers. 

Over the past few years, technology has been able to integrate an IT (Information Technology) ecosystem with relationship and lease management systems, as well as advanced analytics infrastructure for predictive analytics and machine learning — all of which are connected through a common data platform and database. A single ecosystem can be transformative in an industry. Where business processes can be diverse, helping leasing organizations increase profitability, increase revenue, optimize investments. And position their business for long-term growth. 

The importance of a digital transformation strategy cannot be understated. For any CEO or C-suite executive, awareness is the first step. Developing and executing a plan that your leadership team can implement to address the required updates to culture, systems, and capabilities — and that can grow and adapt to changes within the leasing services landscape — is the second step. 

In this post, we will discuss the benefits and impacts of digital transformation for the leasing services sector and offer advice on how to accelerate change within your organization. 

1) Creating digitally rich customer experiences:

Most of the digital native disruptors have converted existing services into digital experiences. That are now an integral part of the daily lives of their customers. Leading fintech companies, specialists, and banks are replicating this model in leasing services. Converting products into features that meet customer needs and keep them engaged. 

Successful leasing companies have taken three steps to position their business for this shift. First, they attract customers by solving extremely specific yet relevant needs. Examples include building experiences and systems that make applying for a lease/loan easier and enable customers. To gain more control over their businesses through self-service portals. 

In addition, top performers integrate customers into an ecosystem by connecting them with other services and building a dynamic and customized customer experience. 

Lastly, companies need to build capabilities that will enable them to deliver personalized solutions, offers, and insights powered by analytics. This helps increase customer engagement with your business which often translates to the much anticipated customer loyalty. Also in a virtuous cycle, it tells you more about customer behaviors and needs. Imagine using customer transaction behavior and deep learning techniques to provide them with cash flow forecasts. That consider loan instalments and subscription services 

2) Digital business models that foster growth beyond the bottom line:

Future-proof business models are less dependent on pure play leasing services and more focused on value-added services that generate greater customer involvement and sustainable revenues. Technology has enabled companies to leverage new business models like subscription-based usage services or customized plans/offers that have a natural advantage. For leasing companies, the challenge—and opportunity—is to leverage their customer base, go beyond basic lease offerings. And increase revenue by providing value-added services like mobility, analytics, and self-service. 

Building the right tech stack: An effective digital transformation is impossible without a transformational platform. To achieve the benefits of cloud and cloud-scale analytics. It is necessary to migrate legacy systems and on-premises infrastructure to a centralized, modern platform. 

Migrating to the cloud can help leasing institutions align with industry standards and best practices, enhance customer agility, optimize performance and integration, and improve compliance, controls, and security. By eliminating the costs and inefficiencies of on-premises infrastructure, companies can focus on empowering employees, delighting customers, and delivering new business value. 

By investing in managed services, companies can benefit from IT expertise provided by highly qualified professionals. And they can scale up and down as needed. Which enables them to concentrate on business-critical objectives and avoid costly downtimes. 

3) Faster go-to-market, leveraging technology and talent:

Today’s top performers in providing leasing services are valued more like tech firms than leasing companies. A clear sign that organizations need to increase their innovation metabolic rate. Gone are the days when a business could take months/years to go from ideation to production for any new product/service. Speed is of the utmost importance to gain and maintain a competitive advantage in today’s highly competitive markets. 

4) Continuous improvement and innovation:

Agile helps organizations foster an environment that fosters experimentation and innovation. But the culture must be nurtured throughout the organization rather than confined to a single vertical. The principles of failing fast, combined with cross-functional collaboration in hackathons, ideations, or immersive learning experiences, help firms remain at the forefront of innovation. 

Having to compete with digitally advanced and agile competitors can be daunting for traditional lenders. Time is running out. Both these competitors and the big tech firms will continue to enjoy upward divergent trends as technology and digital adoption evolve. 

The next few years are crucial for any leasing organization with aspirations to land on the right side of the divergence described in this report. Not only is there simply no value to waiting. But also history shows a pattern in which institutions. That take bold steps toward growth in the first years after a crisis hold on to those gains for the longer term.

The coming years will be disruptive in leasing, but this can be a sort of “golden era” for strategic decision-making. In the current moment, leasing orgs and their many stakeholders can justifiably enjoy. Some brief satisfaction for having weathered a storm. Then they must quickly return to forward-thinking action.

About Odessa:

Headquartered in Philadelphia, USA, Odessa is a software company exclusively focused in the leasing industry. The Odessa Platform powers a diverse customer base globally, providing end-to-end. Extensible solutions for lease and loan origination and portfolio management. Odessa facilitates business agility through rich feature sets including low-code development. Test automation, reporting and business intelligence to ensure organizations can more effectively align business and IT objectives.