Digitalisation

Creating the Amazon of asset finance to overcome servitization barriers

Asset finance companies will need new skills and updated business models to meet the changing asset finance needs of their customers. Customer expectations are being influenced by the ‘Amazon effect’ as they want business solutions to be just as flexible as the services they use in private. Servitization is a major industry trend, through which business customers pay for outcomes instead of traditional assets. The medical industry is already seeing this impact, with some health authorities shifting their strategies from spending millions of pounds purchasing specialist equipment to paying per usage for the scans instead.

Creating the Amazon of asset finance to overcome servitization barriers

Aug 07, 2019

Asset finance companies will need new skills and updated business models to meet the changing asset finance needs of their customers. Customer expectations are being influenced by the ‘Amazon effect’ as they want business solutions to be just as flexible as the services they use in private. Servitization is a major industry trend, through which business customers pay for outcomes instead of traditional assets. The medical industry is already seeing this impact, with some health authorities shifting their strategies from spending millions of pounds purchasing specialist equipment to paying per usage for the scans instead.

Adapting asset finance to support servitization as lines blur between products and services

Manufacturers and their finance partners can exploit an important opportunity for growth by embracing the potential benefits of servitization. Servitization is the innovation of a manufacturer’s capabilities to compete through services rather than simply products alone, which enhances customer insights and generates long-term loyalty. The potential benefits to manufacturers and their asset finance partners were analysed during the International Asset Finance Network conference by Tim Baines, professor of operations strategy and executive director, The Advanced Services Group, at Aston Business School.

Adapting asset finance to support servitization as lines blur between products and services

Jul 25, 2019

Manufacturers and their finance partners can exploit an important opportunity for growth by embracing the potential benefits of servitization. Servitization is the innovation of a manufacturer’s capabilities to compete through services rather than simply products alone, which enhances customer insights and generates long-term loyalty. The potential benefits to manufacturers and their asset finance partners were analysed during the International Asset Finance Network conference by Tim Baines, professor of operations strategy and executive director, The Advanced Services Group, at Aston Business School.

Development of new fleet services 'hampered by poor access to connected car data'

Vehicle manufacturers are hampering the development of new services for connected cars by restricting access to data, an industry supplier claims. Technology provider epyx warns that connected car data is being processed and shared by manufacturers using outdated methods, which blocks access to live streams that could power new services. As a growing number of connected cars are launched by manufacturers, the row is likely to intensify. For most modern connected cars, the vehicle can establish direct links to the manufacturer, so the car can share a wealth of data if the owner approves. This can range from mileage information to data from any of the hundreds of processors now fitted to vehicles, which can then be used to provide added-value services such as predictive maintenance or even driving advice to improve fuel economy. While manufacturers are already making this data available to suppliers, such as leasing companies, epyx argues the delivery method is too cumbersome and limits its value.

Development of new fleet services 'hampered by poor access to connected car data'

Jul 23, 2019

Vehicle manufacturers are hampering the development of new services for connected cars by restricting access to data, an industry supplier claims. Technology provider epyx warns that connected car data is being processed and shared by manufacturers using outdated methods, which blocks access to live streams that could power new services. As a growing number of connected cars are launched by manufacturers, the row is likely to intensify. For most modern connected cars, the vehicle can establish direct links to the manufacturer, so the car can share a wealth of data if the owner approves. This can range from mileage information to data from any of the hundreds of processors now fitted to vehicles, which can then be used to provide added-value services such as predictive maintenance or even driving advice to improve fuel economy. While manufacturers are already making this data available to suppliers, such as leasing companies, epyx argues the delivery method is too cumbersome and limits its value.

iwoca launches real-time loan decisions with Funding Xchange and Funding Options

Innovative small business lender iwoca is partnering with two of the industry’s biggest finance marketplaces, Funding Xchange and Funding Options, to offer real-time loan decisions to customers. Typically, small business owners will receive loan decisions within 30 seconds, after which they are able to draw down funds. It says this improves on the traditional “approval in principle” offered by other business lenders and is aimed at providing an increased level of certainty to customers when it comes to making decisions based on available finance. Loans will initially be limited to amounts up to £15,000.

iwoca launches real-time loan decisions with Funding Xchange and Funding Options

Jul 03, 2019

Innovative small business lender iwoca is partnering with two of the industry’s biggest finance marketplaces, Funding Xchange and Funding Options, to offer real-time loan decisions to customers. Typically, small business owners will receive loan decisions within 30 seconds, after which they are able to draw down funds. It says this improves on the traditional “approval in principle” offered by other business lenders and is aimed at providing an increased level of certainty to customers when it comes to making decisions based on available finance. Loans will initially be limited to amounts up to £15,000.

[Report] Focusing On Customer Outcomes Through Servitization

An emerging key trend in the asset finance sector is the switch from ownership to usership, with consumers increasingly looking for pay-per-use assets rather than outright ownership. Leading software supplier White Clarke Group has sponsored a major piece of research into the implications of this process, dubbed “servitization”, to understand the impact on OEMs and lenders. The research was conducted by Aston Business School’s Advanced Services Group in partnership with White Clarke Group and consultancy firm Invigors. The study includes in-depth discussions and interviews with over 20 finance industry experts, with the first results having been presented at the International Asset Finance Network (IAFN) conference held in London on the 13th of June. The switch from ownership to usership has been most marked among younger consumers in the retail industry, who are increasingly moving to on-demand services. However, it is also now gaining traction across a wide range of industry sectors.

[Report] Focusing On Customer Outcomes Through Servitization

Jun 18, 2019

An emerging key trend in the asset finance sector is the switch from ownership to usership, with consumers increasingly looking for pay-per-use assets rather than outright ownership. Leading software supplier White Clarke Group has sponsored a major piece of research into the implications of this process, dubbed “servitization”, to understand the impact on OEMs and lenders. The research was conducted by Aston Business School’s Advanced Services Group in partnership with White Clarke Group and consultancy firm Invigors. The study includes in-depth discussions and interviews with over 20 finance industry experts, with the first results having been presented at the International Asset Finance Network (IAFN) conference held in London on the 13th of June. The switch from ownership to usership has been most marked among younger consumers in the retail industry, who are increasingly moving to on-demand services. However, it is also now gaining traction across a wide range of industry sectors.

How finance industry leaders must embrace change to drive future growth

Finance industry leaders are taking insights from the FinTech sector as they adapt their companies to a changing business environment. The competitive landscape of asset finance means that companies must embrace change to maintain differentiation and secure loyalty among customers, according to a leading panel of executives. Panellists present at the IAFN Conference included Nathan Mollett, director of Metro Bank Asset Finance, who remarked: “In equipment finance right now, there just isn’t enough innovation. In equipment finance I think increasingly there will be a bigger requirement to have on-demand models. “We are seeing a bit of that in construction and maybe agriculture, but traditional equipment financiers will have to develop pay-as-you-use models to create that differentiation.”

How finance industry leaders must embrace change to drive future growth

May 09, 2019

Finance industry leaders are taking insights from the FinTech sector as they adapt their companies to a changing business environment. The competitive landscape of asset finance means that companies must embrace change to maintain differentiation and secure loyalty among customers, according to a leading panel of executives. Panellists present at the IAFN Conference included Nathan Mollett, director of Metro Bank Asset Finance, who remarked: “In equipment finance right now, there just isn’t enough innovation. In equipment finance I think increasingly there will be a bigger requirement to have on-demand models. “We are seeing a bit of that in construction and maybe agriculture, but traditional equipment financiers will have to develop pay-as-you-use models to create that differentiation.”

Equipment finance could benefit from mirroring digital consumer services

The equipment finance industry should adopt levels of service more closely aligned with digital consumer companies to meet future customer needs, according to a senior industry leader. The move would ensure companies meet the expectations of a new generation of customer employees, who have grown up experiencing the benefits of services powered by technology. Mark Bainbridge, executive vice-president of Caterpillar's captive financial services arm Cat Financial, said as a new generation of executives join the workforce, they expect to have greater levels of digital interaction with finance companies in addition to personalised support.

Equipment finance could benefit from mirroring digital consumer services

May 01, 2019

The equipment finance industry should adopt levels of service more closely aligned with digital consumer companies to meet future customer needs, according to a senior industry leader. The move would ensure companies meet the expectations of a new generation of customer employees, who have grown up experiencing the benefits of services powered by technology. Mark Bainbridge, executive vice-president of Caterpillar's captive financial services arm Cat Financial, said as a new generation of executives join the workforce, they expect to have greater levels of digital interaction with finance companies in addition to personalised support.

Nissan launches online sales in Mexico

Nissan has begun selling passenger cars online in Mexico. The manufacturer has launched a digital store in a partnership with e-commerce specialist Mercado Libre, one of the largest online consumer retail platforms in the country.

Nissan launches online sales in Mexico

May 01, 2019

Nissan has begun selling passenger cars online in Mexico. The manufacturer has launched a digital store in a partnership with e-commerce specialist Mercado Libre, one of the largest online consumer retail platforms in the country.

Jaguar Land Rover trials blockchain-powered smart wallets to offer payments and rewards through connected cars

Drivers will earn rewards by agreeing for their cars to automatically provide weather and road condition reports under a new blockchain-powered service being developed by Jaguar Land Rover. Using crytocurrency technology, vehicle owners earn credits by sharing data their cars are gathering, such as traffic congestion or potholes, which is then sold on to service providers including navigation companies or local authorities. Drivers can then redeem credits for rewards with financial ecosystem partners, which could include coffee shops or local authorities to pay for road tolls, parking or electric vehicle charging.

Jaguar Land Rover trials blockchain-powered smart wallets to offer payments and rewards through connected cars

Apr 29, 2019

Drivers will earn rewards by agreeing for their cars to automatically provide weather and road condition reports under a new blockchain-powered service being developed by Jaguar Land Rover. Using crytocurrency technology, vehicle owners earn credits by sharing data their cars are gathering, such as traffic congestion or potholes, which is then sold on to service providers including navigation companies or local authorities. Drivers can then redeem credits for rewards with financial ecosystem partners, which could include coffee shops or local authorities to pay for road tolls, parking or electric vehicle charging.

Apple’s giant leap into fintech – what Apple Card means for the future of finance

Global tech giant Apple aims to rewrite the rules of finance with the release of Apple Card, its first major move into banking services. The launch of the card illustrates the disruptive power that tech giants can wield and highlights how their direct access to customers through technology, such as smartphones, can accelerate take-up.

Apple’s giant leap into fintech – what Apple Card means for the future of finance

Apr 16, 2019

Global tech giant Apple aims to rewrite the rules of finance with the release of Apple Card, its first major move into banking services. The launch of the card illustrates the disruptive power that tech giants can wield and highlights how their direct access to customers through technology, such as smartphones, can accelerate take-up.

How new AI capabilities are opening up opportunities for finance companies

The financial services sector exists in a disrupted and highly uncertain space. In the decade since the 2008 financial crash, there has been a fundamental shift in how it is regulated, how we think about finance, and how players compete. For instance, the UK has led the way with initiatives such as Open Banking and the Financial Conduct Authority’s Regulatory Sandbox to encourage and fast-track product innovation.

How new AI capabilities are opening up opportunities for finance companies

Apr 16, 2019

The financial services sector exists in a disrupted and highly uncertain space. In the decade since the 2008 financial crash, there has been a fundamental shift in how it is regulated, how we think about finance, and how players compete. For instance, the UK has led the way with initiatives such as Open Banking and the Financial Conduct Authority’s Regulatory Sandbox to encourage and fast-track product innovation.

White Clarke Group announced as Headline Sponsor at IAFN 2019

This year’s International Asset Finance Network (IAFN) conference and awards is proudly sponsored by asset finance technology leader White Clarke Group. On the 13th June, at 155 Bishopsgate in London, key industry leaders and specialists will gather at the IAFN conference to consider the findings of a major new study conducted by Professor Tim Baines of Aston Business School on the changing roles of fleet, auto retail and equipment finance providers as digitalisation and servitisation begins to transform the auto and equipment finance industry. This conference is based on a Delphi study, conducted amongst twelve leading global banks and manufacturer captives, supported by White Clarke Group, as new service-focussed finance models including pay-per-mile, power-by-the-hour, device-as-a-service and even (in the case of one robot manufacturer) pay-per-pick start to emerge.

White Clarke Group announced as Headline Sponsor at IAFN 2019

Apr 09, 2019

This year’s International Asset Finance Network (IAFN) conference and awards is proudly sponsored by asset finance technology leader White Clarke Group. On the 13th June, at 155 Bishopsgate in London, key industry leaders and specialists will gather at the IAFN conference to consider the findings of a major new study conducted by Professor Tim Baines of Aston Business School on the changing roles of fleet, auto retail and equipment finance providers as digitalisation and servitisation begins to transform the auto and equipment finance industry. This conference is based on a Delphi study, conducted amongst twelve leading global banks and manufacturer captives, supported by White Clarke Group, as new service-focussed finance models including pay-per-mile, power-by-the-hour, device-as-a-service and even (in the case of one robot manufacturer) pay-per-pick start to emerge.

Blockchain innovation in mobility - how smart contracts can power the new mobility economy

Blockchain technology has the potential to revolutionise the way mobility solutions are delivered and financed, drastically reducing the cost of providing services. Vehicle-based services such as ride-hailing could have their finance processing costs slashed to a fraction of their current level using the technology and it could transform the type of payments being made, according to Chris Ballinger, chief executive officer and founder of the Mobility Open Blockchain Initiative. MOBI is a global consortium that works with companies throughout the industry to establish common standards for the use of blockchain in the mobility industry. It aims to build a worldwide network of cities, infrastructure providers, consumers, and producers of mobility services in order to accelerate the adoption of the technology.

Blockchain innovation in mobility - how smart contracts can power the new mobility economy

Apr 08, 2019

Blockchain technology has the potential to revolutionise the way mobility solutions are delivered and financed, drastically reducing the cost of providing services. Vehicle-based services such as ride-hailing could have their finance processing costs slashed to a fraction of their current level using the technology and it could transform the type of payments being made, according to Chris Ballinger, chief executive officer and founder of the Mobility Open Blockchain Initiative. MOBI is a global consortium that works with companies throughout the industry to establish common standards for the use of blockchain in the mobility industry. It aims to build a worldwide network of cities, infrastructure providers, consumers, and producers of mobility services in order to accelerate the adoption of the technology.

Tomorrow’s Journey partners with LeasePlan UK ahead of mobility pilot

Global mobility start-up Tomorrow’s Journey has announced a partnership with LeasePlan UK to deliver a ground-breaking trial of its technology to maximise fleet utilisation. The company’s JRNY platform supports the use of shared assets, including fleet vehicles, to spread the benefits of new mobility options. The UK arm of LeasePlan, one of the world’s biggest leasing companies, has become the first partner in a live trial of the company’s technology by supplying vehicles for the pilot.

Tomorrow’s Journey partners with LeasePlan UK ahead of mobility pilot

Apr 05, 2019

Global mobility start-up Tomorrow’s Journey has announced a partnership with LeasePlan UK to deliver a ground-breaking trial of its technology to maximise fleet utilisation. The company’s JRNY platform supports the use of shared assets, including fleet vehicles, to spread the benefits of new mobility options. The UK arm of LeasePlan, one of the world’s biggest leasing companies, has become the first partner in a live trial of the company’s technology by supplying vehicles for the pilot.

Tech giants eclipse banks in fintech patent race

Banks are being left behind when it comes to fintech innovation because technology giants are leading the investment race to develop potentially disruptive technologies. Research has revealed that IBM alone has five times more fintech patents than the largest 15 banks put together, with 24,000 fintech innovations, while Microsoft has 20,000 and Google 10,000. Analysis of the world’s 15 largest banks found that Bank of America was leading the way by investing in technology patents for developing its business. Its 2,547 patents are nearly as many as the combined portfolio of the other 14 banks analysed.

Tech giants eclipse banks in fintech patent race

Aug 24, 2018

Banks are being left behind when it comes to fintech innovation because technology giants are leading the investment race to develop potentially disruptive technologies. Research has revealed that IBM alone has five times more fintech patents than the largest 15 banks put together, with 24,000 fintech innovations, while Microsoft has 20,000 and Google 10,000. Analysis of the world’s 15 largest banks found that Bank of America was leading the way by investing in technology patents for developing its business. Its 2,547 patents are nearly as many as the combined portfolio of the other 14 banks analysed.

Currency CEO Charles Anderson focuses on unique role for fintechs in equipment finance journey

Equipment finance providers need to consider their future role in the industry as the market is reshaped by digitalisation and changing customer expectations. That’s the view of Charles Anderson, the chief executive officer and founder of technology platform Currency, which is driving the development of new digital channels in finance. Despite the size of the $1.7 trillion equipment purchase market, with $1.1 trillion in finance, the sector is ‘behind the curve’ compared to other finance verticals, such as credit cards, mortgage, auto loans and general consumer finance, he argues. Anderson believes it is not a question of ‘if’ the market will be reshaped by technology, but ‘when’, as the sector adapts to meet a huge unmet need for an updated, digital finance experience.

Currency CEO Charles Anderson focuses on unique role for fintechs in equipment finance journey

Aug 13, 2018

Equipment finance providers need to consider their future role in the industry as the market is reshaped by digitalisation and changing customer expectations. That’s the view of Charles Anderson, the chief executive officer and founder of technology platform Currency, which is driving the development of new digital channels in finance. Despite the size of the $1.7 trillion equipment purchase market, with $1.1 trillion in finance, the sector is ‘behind the curve’ compared to other finance verticals, such as credit cards, mortgage, auto loans and general consumer finance, he argues. Anderson believes it is not a question of ‘if’ the market will be reshaped by technology, but ‘when’, as the sector adapts to meet a huge unmet need for an updated, digital finance experience.

Crossing the ‘uncanny valley’ – A new era of machine-human engagement

The latest developments in machine-human engagement can offer auto finance customers an ‘almost human’ experience that could transform service levels. Meet Rachel, a ‘digital human’ created by Soul Machines as part of its work with IBM to enable greater levels of face-to-face interaction in business. According to chief business officer Greg Cross: “Humans can communicate in lots of ways. But when we actually want to have important conversations we always do those face to face.” Delegates at the Auto Captive Summit, hosted by global finance technology supplier White Clarke Group, were able to see Rachel first-hand during a presentation by Toby Woolfe, industry solutions business development executive at IBM.

Crossing the ‘uncanny valley’ – A new era of machine-human engagement

Jul 17, 2018

The latest developments in machine-human engagement can offer auto finance customers an ‘almost human’ experience that could transform service levels. Meet Rachel, a ‘digital human’ created by Soul Machines as part of its work with IBM to enable greater levels of face-to-face interaction in business. According to chief business officer Greg Cross: “Humans can communicate in lots of ways. But when we actually want to have important conversations we always do those face to face.” Delegates at the Auto Captive Summit, hosted by global finance technology supplier White Clarke Group, were able to see Rachel first-hand during a presentation by Toby Woolfe, industry solutions business development executive at IBM.

Bank of America reaches customer milestone for AI-driven assistant Erica

Bank of America has revealed more than 1 million customers now use Erica, the first widely available AI-driven virtual assistant in financial services, available to clients in its mobile banking app. The milestone was reached within two months of completing its phased rollout, which made Erica available to mobile clients throughout the US.

Bank of America reaches customer milestone for AI-driven assistant Erica

Jun 26, 2018

Bank of America has revealed more than 1 million customers now use Erica, the first widely available AI-driven virtual assistant in financial services, available to clients in its mobile banking app. The milestone was reached within two months of completing its phased rollout, which made Erica available to mobile clients throughout the US.

ING Group CEO Ralph Hamers commits to open digital culture to drive innovation

ING Group is to open its planned new Amsterdam campus to external fintechs and other partners in a bid to drive innovation and collaboration. Ralph Hamers, the chief executive officer of ING Group, said the move was part of an essential commitment that included the need for its digital platforms to be open. Speaking at Europe’s largest fintech gathering, Money20/20, he revealed that the Amsterdam campus, due for completion in 2019, would bring together thousands of the best and brightest minds, ranging from ING employees to external companies and collaborators, to help “invent the future”.

ING Group CEO Ralph Hamers commits to open digital culture to drive innovation

Jun 25, 2018

ING Group is to open its planned new Amsterdam campus to external fintechs and other partners in a bid to drive innovation and collaboration. Ralph Hamers, the chief executive officer of ING Group, said the move was part of an essential commitment that included the need for its digital platforms to be open. Speaking at Europe’s largest fintech gathering, Money20/20, he revealed that the Amsterdam campus, due for completion in 2019, would bring together thousands of the best and brightest minds, ranging from ING employees to external companies and collaborators, to help “invent the future”.

Yamaha Motor Finance USA signs up with White Clarke Group

Yamaha Motor Finance USA has announced a partnership with technology supplier White Clarke Group. The deal is part of plans Yamaha Motor Finance first unveiled a year ago to bring its floorplan financing in-house, with a vision to provide a complete range of finance company services. It has selected CALMS Compass Floorplan Finance Software, which is already in use in its Canadian arm, as the platform for the new initiative.  

Yamaha Motor Finance USA signs up with White Clarke Group

Jun 21, 2018

Yamaha Motor Finance USA has announced a partnership with technology supplier White Clarke Group. The deal is part of plans Yamaha Motor Finance first unveiled a year ago to bring its floorplan financing in-house, with a vision to provide a complete range of finance company services. It has selected CALMS Compass Floorplan Finance Software, which is already in use in its Canadian arm, as the platform for the new initiative.