By Mukul Mittal, Vice President of Industry Solutions, Q2 Lending
COVID-19 is increasing the focus on asset finance lenders, specifically their ability to help small and medium-sized businesses (SMEs) amid the new normal. It’s critical SMEs receive the assistance they need, as an estimated 99% of them* in industrialised countries serve as the economic bedrock of their society.
Some lessors are meeting the immediate needs of vulnerable SMEs in their communities more effectively than others. Because of a commitment to innovation via Straight-Through Processing (STP), they can meet the requirements of small ticket leasing while taking on more applications and keeping costs down. This ability to help is allowing them to outperform competitors and create new relationships in an underserved and potentially lucrative market.
Our asset finance customers understand that an inevitable shift to digital leasing is taking place now, and we work in partnership with them to find simple and effective digital solutions that support stronger customer relationships and underpin the growth of their business.
In my experience siloed operations and messy legacy systems are at the centre of the challenges most asset finance organisations face. This is an area STP will provide results, bringing automation to asset finance. Critical to STP is the cloud and other advanced technologies. When put to work, the current leasing mission can be successful while accelerating longer-term growth plans.
A significant reason STP works so well lies in the API integrations that are built into STP processes. These integrations yield faster loan enrollment, rapid movement of information, and quicker decisions—with far less error and risk. They establish an infrastructure that collects, stores, and uses information about customers. A highly personalised approach to leasing will emerge, which is what customers expect today.
STP is the subject of a new Q2 e-book, The High Cost of Lending Uncovered. Get more information on how STP can help your leasing operation in the new normal and beyond. Chapter 2 of the eBook includes a case study on a recent STP success—a must-read.
*Source: Oxford Economics