John Deere Financial expanding use of machine-level data
Parent company’s R&D spend rose for second consecutive year
John Deere Financial wants to expand the use of data it gets directly from connected equipment to improve credit decisioning, streamline workflows and deliver a more personalized customer experience.
The strategy is part of the priorities for John Deere Financial (JDF) President Jerred Pauwels, who assumed the role on Feb. 2, and centers on combining operational data from Deere’s equipment with financial data, giving the captive a more complete view of its customers, Pauwels told Equipment Finance News.
“When you start having a view of a customer’s operational data and their financial data, we have a pretty good view of how we can better serve them,” he said. “It definitely positions us to begin thinking about how we better offer and structure [deals] that best meet their needs whenever we put that picture of that customer together rather than viewing it in a silo.”
Data integration improves experience, operations
Through Deere’s connected equipment ecosystem, JDF can analyze how machines are used and how customers operate in real time, Pauwels said.
That visibility is helping improve:
- Credit decision speed;
- Risk assessment accuracy; and
By incorporating that data into underwriting, the captive can move faster while maintaining discipline, Pauwels said.
“We know our customers’ business and the dynamics of equipment better than anybody, which gives us an advantage in how we underwrite customers, but then [we add] the risk management analytics capabilities as well,” he said. “We have an extremely capable team and organization that actively manages those portfolios to ensure that whenever the negative event does happen and put stress on a sector, we are very proactive and engaged in how we’re going to manage that portfolio.”
Machine-level and customer data are also reshaping financing and customer expectations at the point of sale, Pauwels said.
“If I’m in a dealership and I decide I’m ready to buy a new tractor and trade in my old one, I expect, since you know me, you should be able to approve my credit application pretty quickly,” he said.
By using existing data, JDF aims to reduce friction through faster approvals, automated documentation and quicker funding, Pauwels added.
Tech investment supports data-driven strategy
The technology investment of Deere & Co., JDF’s parent, is underpinning these capabilities. The OEM spent $2.3 billion on R&D in 2025, up about 0.9% YoY, following a 5% increase in 2023, according to the company’s Dec. 18, 2025, 10-K filing with the SEC.
Those investments support connected equipment, data platforms and digital infrastructure that enable JDF to operate a data-driven lending model, Pauwels said.
“We need to invest to ensure those [systems] are modern and make sure they’re capable of accepting new digital technologies,” he said. “The application of [AI], which offers us tremendous opportunity to re-engineer our processes to be more effective, faster and lower cost, but, even more important than those things, is to ensure we can deliver an overwhelmingly positive and differentiated experience for the customer and the dealer.”
The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston May 18-19. Learn more about the event and register here.
