Digitalizing equipment finance: Phased implementation key
39% of equipment ABS issuances were digital in 2024
Equipment lenders must take a phased approach to digital adoption as they look to improve efficiency and regulatory compliance while limiting business disruptions.
The e-contracting adoption rate for equipment lease financing is up 9.9% year over year so far in 2025, according to professional information, software and service provider Wolters Kluwer, which presented a webinar on the subject Aug. 21.
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More than 39% of issued equipment asset-backed securities were digital in 2024, up from 34.2% in 2023, according to the company.
As more lenders embrace digitalization to speed transactions, prevent fraud and meet compliance requirements, gradual implementation is key to limiting disruption and allowing scalability, Eric Capehart, associate director of market strategy for Wolters Kluwer’s digital lending solutions, said during the webinar.
“My recommendation is always to take a phased approach to implementation, starting with one processor platform, scale gradually,” he said. “No two operations are going to be exactly alike.”
Lenders should identify processes most in need of enhanced efficiency “because that is where that scalability comes into play,” Capehart said.
“The only way you can scale is by finding those points of efficiency to introduce,” he said. “So, take the established workflows, the established processes that you have in place, and look for those opportunities.”
Lean on tech partners
Strong partnerships with tech providers are also crucial to smooth implementation and long-term success, Capehart said.
“One thing I definitely recommend is fostering some strategic relationships,” he said. “Collaborate with some trusted vendors, look for those industry experts who can provide additional support and expertise all along the way. You want to leverage the strategic partnerships that will enable you to deploy platforms that are going to meet your specific needs, automating your processes and then establishing your own best practices.”
Lenders can support tech partners by pinpointing the specific goals they want to achieve over a given time frame, Suzie Neff, a consultant for collateral-based lending and an industry relations lead for Wolters Kluwer’s lien solutions, said during the webinar.
“When a customer comes to us, they generally have a time frame that they have envisioned in their mind, a point in time where they need a certain end result,” she said.
Check out our exclusive industry data here.
