Digitalisation

Why ‘think digital’ is a vital strategy for servitization success

Finance providers and auto dealers will need to adapt their business offering as a growing proportion of customers switch from vehicle ownership to usage-based services. A vital element of this change is ‘thinking digital’ to ensure services remain relevant to the connected consumer. This growing community is already comfortable with pay-on-use services such as mobile phones and expects digital services to provide added value and a great user experience.

Why ‘think digital’ is a vital strategy for servitization success

Sep 30, 2019

Finance providers and auto dealers will need to adapt their business offering as a growing proportion of customers switch from vehicle ownership to usage-based services. A vital element of this change is ‘thinking digital’ to ensure services remain relevant to the connected consumer. This growing community is already comfortable with pay-on-use services such as mobile phones and expects digital services to provide added value and a great user experience.

Building the ‘value hill’ in asset finance

Asset finance companies are facing new types of risk as they adapt their business models to servitization. Customers are keen to adopt ‘pay-on-use’ services, but funders and suppliers will need to ensure that the deal remains profitable by maximising the utilisation of assets during their first use and also through developing business models focused on the circular economy to extend their working life and generate value from reuse, refurbishment and recycling.

Building the ‘value hill’ in asset finance

Sep 17, 2019

Asset finance companies are facing new types of risk as they adapt their business models to servitization. Customers are keen to adopt ‘pay-on-use’ services, but funders and suppliers will need to ensure that the deal remains profitable by maximising the utilisation of assets during their first use and also through developing business models focused on the circular economy to extend their working life and generate value from reuse, refurbishment and recycling.

Why digital retailing is reaching a tipping point

The online sale and purchase of used cars and vans has begun to reach a tipping point in the second half of 2019, where the vast majority of retailers are using digital avenues to retail used vehicles, according to epyx. Executives as the e-commerce solutions provider believe that the end-to-end digital processes have encompassed the world of stock acquisition and retail, and that as digital process become more comprehensive and reliable, more used car retailers are spending less time away from their desks.

Why digital retailing is reaching a tipping point

Sep 09, 2019

The online sale and purchase of used cars and vans has begun to reach a tipping point in the second half of 2019, where the vast majority of retailers are using digital avenues to retail used vehicles, according to epyx. Executives as the e-commerce solutions provider believe that the end-to-end digital processes have encompassed the world of stock acquisition and retail, and that as digital process become more comprehensive and reliable, more used car retailers are spending less time away from their desks.

Little progress on blockchain development for equipment finance, says Alta Group

The equipment finance industry is being left behind by other sectors on blockchain development, according to the latest Monitor report from The Alta Group. A blockchain is a data structure that makes it possible to create a digital ledger of data and share it among a network of independent parties. A suite of distributed ledger technologies that can be programmed to record and track anything of value. Valerie L. Gerard, senior managing director and leader of the Strategy & Competitive Alignment Practice for The Alta Group’s consulting services, said that while other sectors are diving or wading in to blockchain development, equipment finance companies aren’t there yet.

Little progress on blockchain development for equipment finance, says Alta Group

Aug 22, 2019

The equipment finance industry is being left behind by other sectors on blockchain development, according to the latest Monitor report from The Alta Group. A blockchain is a data structure that makes it possible to create a digital ledger of data and share it among a network of independent parties. A suite of distributed ledger technologies that can be programmed to record and track anything of value. Valerie L. Gerard, senior managing director and leader of the Strategy & Competitive Alignment Practice for The Alta Group’s consulting services, said that while other sectors are diving or wading in to blockchain development, equipment finance companies aren’t there yet.

Delivering the roadmap from product sales to servitization

Funders need to change and adapt to take maximum advantage of the financing opportunities related to servitization. The transition from financing products to delivering outcomes is lengthy and challenging but with a clear focus new services can thrive, according to Nick Feasey, former director of funding and strategy at Lenovo Financial Services. Speaking at the International Asset Finance Network conference, before he left the role, he said: “There’s a huge opportunity and a lot of those cash customers are now asking about this type of model, which I think is great for the asset finance industry.”

Delivering the roadmap from product sales to servitization

Aug 21, 2019

Funders need to change and adapt to take maximum advantage of the financing opportunities related to servitization. The transition from financing products to delivering outcomes is lengthy and challenging but with a clear focus new services can thrive, according to Nick Feasey, former director of funding and strategy at Lenovo Financial Services. Speaking at the International Asset Finance Network conference, before he left the role, he said: “There’s a huge opportunity and a lot of those cash customers are now asking about this type of model, which I think is great for the asset finance industry.”

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.

Daimler Financial Services invests in avatar-based customer service

Daimler Financial Services has made a strategic investment in Soul Machines, the New Zealand start-up that is a world leader in digital avatar-based customer service. The investment will help Daimler Financial Services to develop ‘near human’ digital services based around on-screen avatars that display ‘emotional intelligence’. The company brings technology to life by creating incredibly realistic, emotionally responsive, artificial humans with personality and character that allows machines to talk to humans face-to-face.

Daimler Financial Services invests in avatar-based customer service

Oct 19, 2018

Daimler Financial Services has made a strategic investment in Soul Machines, the New Zealand start-up that is a world leader in digital avatar-based customer service. The investment will help Daimler Financial Services to develop ‘near human’ digital services based around on-screen avatars that display ‘emotional intelligence’. The company brings technology to life by creating incredibly realistic, emotionally responsive, artificial humans with personality and character that allows machines to talk to humans face-to-face.

Exeter Finance extends partnership with White Clarke Group

Exeter Finance has extended its contract with financial software provider White Clarke Group for its CALMS Loan Origination Software. Exeter Finance is a specialty auto finance company based in Irving, Texas, that partners with franchised auto dealers throughout the country. Founded in 2006, it works with more than 9,000 US dealers and has a serviced finance portfolio of more than $3 billion dollars, with more than 200,000 customers nationwide.

Exeter Finance extends partnership with White Clarke Group

Oct 19, 2018

Exeter Finance has extended its contract with financial software provider White Clarke Group for its CALMS Loan Origination Software. Exeter Finance is a specialty auto finance company based in Irving, Texas, that partners with franchised auto dealers throughout the country. Founded in 2006, it works with more than 9,000 US dealers and has a serviced finance portfolio of more than $3 billion dollars, with more than 200,000 customers nationwide.

Fleet finance market faces radical change

Fleet finance companies are facing fundamental changes as they respond to new market dynamics and innovative opportunities for growth. The changes are being instigated by underlying trends in both the corporate and private vehicle segments, which were outlined at the recent International Asset Finance Network conference in London. A key trend is the increasing focus on the consumer segment as a source of growth for leasing companies, which requires a different approach compared to serving the fleet market, traditionally the leasing sector’s key source of demand. Tim Porter, managing director of Lex Autolease, the UK’s biggest leasing company, explains the factors behind the strategic change in this video, provided courtesy of global financial technology supplier White Clarke Group.

Fleet finance market faces radical change

Oct 16, 2018

Fleet finance companies are facing fundamental changes as they respond to new market dynamics and innovative opportunities for growth. The changes are being instigated by underlying trends in both the corporate and private vehicle segments, which were outlined at the recent International Asset Finance Network conference in London. A key trend is the increasing focus on the consumer segment as a source of growth for leasing companies, which requires a different approach compared to serving the fleet market, traditionally the leasing sector’s key source of demand. Tim Porter, managing director of Lex Autolease, the UK’s biggest leasing company, explains the factors behind the strategic change in this video, provided courtesy of global financial technology supplier White Clarke Group.

ChannelNet reveals global ambitions following landmark deal

ChannelNet is planning a global roll-out of its Software-as-a-Service digital platform following its landmark strategic partnership with White Clarke Group. ChannelNet has pioneered the use of digital marketing tools to support customer acquisition and retention, through mobile and web-based solutions. Founded more than 30 years ago, the digital marketing specialist brands itself as a digital pioneer, as it has been at the forefront of automating and digitising customer communication for decades.

ChannelNet reveals global ambitions following landmark deal

Sep 04, 2018

ChannelNet is planning a global roll-out of its Software-as-a-Service digital platform following its landmark strategic partnership with White Clarke Group. ChannelNet has pioneered the use of digital marketing tools to support customer acquisition and retention, through mobile and web-based solutions. Founded more than 30 years ago, the digital marketing specialist brands itself as a digital pioneer, as it has been at the forefront of automating and digitising customer communication for decades.

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.