NetSol Technologies has entered the implementation phase with DongZheng Auto Finance, a joint venture between ZhengTong Auto Services Holding Limited, a major premium branded dealership group in China, and DongFeng Motors Corporation, to automate its front and back-office finance and leasing operations.
The agreement, previously disclosed in NetSol's second fiscal quarter news release in November, includes the credit application processing system (CAP), contract management system (CMS), and wholesale finance system (WFS) modules of the NetSol Financial Suite (NFS).
Najeeb Ghauri, CEO of NetSol said: "We are pleased to be partnering with DongZheng Auto to support its growth, and thank them for their trust in our solution.
"Our NFS platform is the benchmark solution for China's growing asset finance and leasing industry, providing clients with a harmonized solution catering to Chinese legal, regulatory and business requirements."
Auto leasing in China could grow at an annual rate of 25% over the next five years, potentially creating significant growth opportunities for OEMs' captive finance arms, according to a December China automotive report by global accounting firm PricewaterhouseCoopers.
Ghauri added: "We are increasingly optimistic about our business prospects in China, with two key trends underlying our market opportunity: the relaxing of auto financing licenses through the CBRC, providing new implementation opportunities; and the changing consumer dynamic of more consumers leasing or financing autos, leading to increased utilization of our software.”
In China, 18 of the 22 China Banking Regulatory Commission (CBRC) licensed companies have adopted NetSol's financing and leasing software.
