Equipment lenders, dealers and manufacturers ramped up their investments in AI-driven solutions and other technology in 2024.
Borrowers’ expectations of fast and seamless financing drove tech spending among dealers and lenders, and equipment financiers upped their use of AI for tasks such as credit scoring, loan approvals, fraud prevention and to meet compliance requirements.
Equipment Finance New covered the industry’s move toward tech throughout the year. Here are 2024’s top stories on that shift.
1. Equipment financiers weigh risks amid AI revolution
The number of lending institutions implementing AI rose to 72% in 2024 from 55% in 2023, according to software provider JumpGrowth. As AI adoption increased in equipment finance, so did the need to manage risks associated with it, including algorithmic biases and overreliance. Human oversight and governance frameworks to ensure transparent and fair lending practices can help mitigate these risks.
2. Toro, John Deere Financial, New Holland Construction embrace tech
Several titans of the heavy-equipment industry deployed technologies to streamline dealer and lender operations this year. John Deere Financial, for instance, began pre-approval on financing, enabling customers to know whether they’re qualified for credit before they arrive at the dealership. Equipment manufacturer New Holland Construction also launched an online application platform that allows customers to get pre-approved without having to go through its captive financing arm.
3. Societal shifts pave way for fintechs in equipment finance
Fintechs emerged as major players in equipment finance amid the tech revolution and evolving consumer behaviors, driven by the need for “instant gratification.” Dealers and lenders began leaning on fintechs more than ever as they looked to automate and accelerate the financing process. With the global fintech market expected to more than triple to nearly $1.2 trillion by 2032, according to Fortune Business Insights, providing solutions that are affordable and easy to use will be crucial for fintechs.
4. Mitsubishi HC Capital America moves to AI for predictive pricing, marketing
Mitsubishi HC Capital America launched its first AI-driven predictive pricing model for sales and revealed plans to use AI for marketing predictions. The tool is driven by Salesforce’s Mulesoft technology, allowing the lender to predict when sales are expected based on AI data.
5. Penske Truck Leasing unveils fleet management AI
Transportation service provider Penske Truck Leasing pulled back the curtain on Catalyst AI, a fleet management service that combines AI and telematics with Penske’s extensive industry data and expertise. Catalyst AI allows users to view specific data in real time, marking a shift from traditional benchmarking surveys that the transportation industry has typically relied on. As of March, 77% of 259 transportation executives said they rely on traditional benchmarking for planning and procurement, according to market research firm Big Village.
The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.
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