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.
David Betteley, an industry advisor to Asset Finance International, told delegates at the International Asset Finance Network conference that servitization has the potential to disrupt the asset finance industry, and finance companies will have to adapt to changing customer expectations.
He said: “Those of us in asset finance know about how to price; we have cost of funds, we have the operating costs, we have margin and so on. It is very easy for us to build up an overall price. But when a customer is asking to pay for a piece of equipment based on how many times it is used, that is really difficult and it is a massive risk that the industry sees.”
An overview of how asset finance companies need to respond to this changing business environment is available in this exclusive video, courtesy of global automotive, consumer and equipment finance software company White Clarke Group.
You can also view and download a new report on servitization that was supported by White Clarke Group here.