The leasing market has expanded significantly over the last few years, and while the leasing business is growing globally, many companies still face challenges in trying to adapt to the market while outperforming the competitors.
Challenges faced by companies in the financial sector
- Those who can offer the widest possible financial services portfolio win in a competitive battle. Therefore, the financial products portfolio needs to be broadened to meet market trends and needs.
- As leasing product becomes more and more popular, it is difficult to imagine a financial organization which doesn’t offer this product.
Customers demand more flexibility and speed, so companies are forced to ensure a faster process from application to contract signing and final delivery/transfer of the leased asset to the customer. - Additional services such as insurance, etc. must be included in addition to the core financial products. This helps customers to purchase everything here and now from one source, which gives company the opportunity to generate additional income.
- Necessity to meet constantly changing regulatory and reporting requirements without compromising operational efficiency, not increasing the size of back-office team, and maintaining the same level of operational costs.
- Companies may use fragmented tools/systems to manage their leasing activities/process:
- Data is maintained (duplicated) in several different and non-integrated systems (CRM, contract management system, accounting system, other information stored in Excel files). Same data is entered several times by different departments, – this is inefficient and increases operational risks.
- As a result, the processes of signing contracts, making payments to suppliers/partners, and delivering/transferring leased assets are lengthy and inefficient.
- Sales managers spend too much time on internal contract processing rather than on finding new customers and increasing the revenue.
First steps
If you are a start-up, or your company is growing and you want more efficient processes and less risks, you should consider digitization of manual processes and evaluate your business operations throughout the following aspects:
- Process management: review the leasing process from the first contact with the customer to the end of the contract, data (portfolio, customer obligations) analysis activities, whether all elements in the chain are efficiently organized, whether there is not too much manual work, etc.
- Identify the areas that cause the biggest inefficiencies in the overall process, perhaps digitizing these areas will bring the greatest benefits.
- Take an inventory of all systems in use – perhaps several systems can be replaced by one, perhaps certain systems are technologically obsolete and therefore difficult to modify/integrate.
- Decide which processes could be managed in a single system (for example, leasing contract and accounting management) in order to improve the efficiency of business operations and the ability to service the growing volume of leasing contracts without increasing human resources or operational costs.
Once you have evaluated the whole leasing process, decide which business processes would benefit from digitalization and simply choose the system that is right for you.
Find our solution on Microsoft AppSource
Specialized leasing and consumer credit contract management solution.
Egidijus Plynius
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