2016-11-17 09:41:58
REPLACING front- and back-end systems remains a top priority for equipment finance firms, reveals the 2016/2017 Business Technology Performance Index (BTPI) from ELFA and Capgemini, a leading provider of consulting, technology and outsourcing services. The main objective of the BTPI, which is based on industry research and input from ELFA members, is to understand the current thinking of market-leading equipment finance firms relative to the decision processes associated with operations and technology initiatives. The report also reveals the current state of technology in the equipment finance industry.
Top Initiatives
The BTPI provides insight into the technology trends and forward-looking initiatives that equipment finance companies are focusing on to drive their firms into new markets and opportunities and improved, more efficient operations.
35% of respondents indicated a front-end system replacement and 27% indicated a back-end system replacement would be considered in the next 18 months.
Core front-end and back-end platforms were reported at an average life of 10.3 and 12.8 years, respectively, in terms of their time in use.
Other key initiatives to be undertaken by equipment finance companies include business intelligence improvements, electronic signature solutions and better integration with other various systems.
63% of respondents indicated that core back-end systems do not meet future business needs while 54% reported the same for core front-end systems.
Getting to Know the Customer
Equipment finance companies are moving toward a more customer focused and friendly way of doing business. More are focusing on “customer intimacy”—a marketing strategy where a service supplier or product retailer gets close to their clients.
58% of respondents view “customer intimacy” as the No. 1 value discipline for their organization.
77% of respondents use Customer Relationship Management (CRM) systems as a tool to drive customer intimacy, while 35% also use big data solutions.
46% of respondents indicated they collect a “medium” level of detailed customer information that is not segmented into target markets.
48% reported that integration to a CRM system is one of the top features missing or most highly deficient in their front-end platform.
Mobile Channels – A total of 44% of respondents reported that mobile capabilities as a whole are missing from their front-end solution. However, that should change as 40% of respondents said they plan to provide these capabilities in the future.
Meeting Customer Needs – Many organizations are challenged to keep up with increasing customer demands. Survey respondents reported that online execution of documents and online payment capabilities were two key resources they do not provide that customers are requesting.
Download the Report
The 2016/2017 Business Technology Performance Index is available to download from the ELFA website at www.elfaonline.org/data/market-trends.
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