During the latest Asset Finance Connect (AFC) webcast, sponsored by NETSOL Technologies, representatives from the asset finance broker and lender communities came together to explore the role of broker technology, looking at why, where and how brokers can use tech to do more business, improve margins and better serve customers and lenders.
You can read a summary of the webcast session at https://www.assetfinanceconnect.com/webcast/why-where-and-how-asset-finance-brokers-should-use-tech-in-their-business/
Changing customer and lender expectations are one factor increasing the need for brokers to invest in their own technology rather than relying on lender tech alone or remaining analogue.
Tech can help brokers to run better and more efficient businesses. Brokers should not see tech necessarily as about end-to-end automation. Brokers should instead identify what their specific needs are for tech and select the best solutions for the purposes they have identified as important to them.
For some businesses with a high flow of small commodity transactions brokers may wish to automate more. For other low volume, high value businesses the needs are different, and the solutions will therefore vary, perhaps focusing on removing administration or as a co-pilot assisting the broker.
Three compelling reasons for brokers to deploy tech were considered during the webinar: (i) to enable brokers to effectively scale; (ii) to save time and reduce costs; and (iii) to manage and demonstrate compliance. These purposes are considered widespread across the industry.
Brokers are deploying technology to originate more business. Brokers should expect to increasingly connect with customers via digital channels; and will also use tech to find and manage customers more efficiently as they scale.
Brokers can also use tech to reduce cost through automation - reducing administration, leaving them free to focus on where they add most value.
One opportunity mentioned by many brokers was to deploy tech to improve the look to book ratio (reducing the proportion of deals sent to lenders which have a low chance of success).
Another key requirement appears to be to manage compliance – an increasingly time-consuming part of the work of brokers. This might include evidencing the customer journey.
The importance of the broker investing in their own tech was highlighted in the webinar. Tech is not one-size-fits-all, so standard solutions offered by lenders are unlikely to solve all the needs of a broker.
Brokers should assess the opportunity to develop their own bespoke solutions by deploying apps. Apps can be implemented individually to meet a specific limited need for the business. They can also be connected, via APIs, to create a bespoke comprehensive solution. This modular approach enables brokers to add tech progressively, affordably and without the need for a full internal tech resource.
NETSOL Technologies has launched the AppexNow suite of apps, consisting of a number of modular component-based solutions which are designed to meet the likely needs of asset finance brokers.
To find out more about NETSOL’s marketplace of API-first products for the finance and leasing industry, visit https://appexnow.com/
