The Impact Of Digital Transformation On The Leasing Industry

Digital technologies have altered how businesses operate across all sectors over the past ten years, and the global finance and leasing sector is no different. For a smooth user experience, Najeeb Ghauri of Netsol Technologies tells us that customers expect finance and leasing providers to offer convenience and better support.

Customers that interact with businesses through a seamless, omnichannel experience can do so from any location at any time. Being really customer-centric and matching the high expectations of today's consumers boosts loyalty, retention, and value as compared to competitors who are more technologically nimble.

With improvements in the financial technology sector, the way payments are facilitated is expected to change even more. Mobile wallets will eventually replace debit and credit cards as the primary method of payment.

An omnichannel experience offers individualized, practical, and more customer-focused services by connecting the loan approval/leasing procedure with the Internet and digital technology. As a result, the company experiences a higher retention rate and more revenue.

To improve the origination process, finance and leasing organizations are collaborating with tech firms. Through an omnichannel presence, they may provide targeted cross-selling and upselling. Additionally, improved dealer connection makes it easier to collect thorough consumer data and prevents the need for tracking information.

Leasing and finance companies all around the world have created new business models as a result of robust connection and digital technologies. Due to technology advancements like FinTech, which are financial technologies used and deployed in the financial services sector, the lease and asset finance market is expanding with digital enablement solutions. Examples of these technologies include:

Artificial intelligence: is employed in the market to provide automated credit scoring and processing, more user-friendly interfaces, and improved customer-assisted interactions.

Virtual reality: will give automobile customers a special opportunity to view and customize their vehicles.

Blockchain: making it possible for swift and precise transactions in a way that strengthens ecosystems and dramatically lowers risk.

Big data utilization by financing and leasing businesses can also lead to a better and more thorough understanding of clients, rivals, markets, goods, services, and distribution routes. Big data analytics also makes it possible for better informed decision-making by fostering transparency through the analysis and delivery of crucial data across networks, which can offer a deeper understanding of the company.

Finance and leasing businesses can use big data to evaluate potential new market opportunities, create new products and services, boost customer happiness, and keep customers as a result.

The digital future

Globally, there are more than four billion Internet users, three billion active users of social networks, and around three billion active users of mobile social networks. Cisco estimates that there are approximately 20.6 billion networked devices in use worldwide. The term "digital" is no longer futuristic. Today is the future. The entire globe is interconnected, globalized, and using digital technology in their daily lives.

The global leasing and asset financing market has already embraced digital transformation, which has streamlined processes and helped finance businesses increase productivity while drastically cutting costs. Customers benefit from enhanced and smoother customer experiences provided by digital, and it is possible that in the near future, the entirety of their purchasing transaction will be conducted entirely online. It's interesting to note that by 2020, there will likely be no human interaction for 85% of a customer's brand experience.

Self-service enables businesses to offer online help to their clients and empowers users to obtain information and complete common activities using technology without having to speak to a live customer care agent.

Asset finance and leasing are swiftly transitioning to a fully digital experience, similar to worldwide trends in other industries. When compared to their more technologically nimble rivals, financial and leasing institutions that do not undergo a digital transformation may soon find themselves in a very insecure situation.