5 Minutes with the Small-Ticket Chair

What’s happening in the small ticket sector of the equipment finance space? EL&F Magazine recently talked to David Normandin, Chair of the Small Ticket Business Council Steering Committee (BCSC), to take the pulse of this sector. Normandin, Managing Director, Commercial Finance Group, Hanmi Bank, is currently serving his second year as Chair of the committee, which represents companies primarily involved in transactions of less than $250,000, either individually or through lines.

From your perspective serving on the Small Ticket BCSC, what issues are equipment finance companies in the small ticket sector focused on this year?

From the growth of fintech disrupters to the “share of wallet” struggles at the largest banks, technology development is top-of-mind for executives who understand it is an essential ingredient to succeed in the highly competitive small ticket equipment leasing and finance space today. Our customers want a customer-centric experience that meets them where they are and flexible solutions tailored to their needs and desired outcomes.

The small ticket equipment leasing and finance sector has leveraged technology to increase efficiency and consistency in credit underwriting while providing predictable portfolio performance for a long time. Today technology is being used to take applications on mobile devices, auto decision credits, document via electronic signatures and provide a consumer mobile app-like experience that customers have come to expect in their personal lives.

As the costs of technology development continue to come into the reach of smaller and more nimble organizations, the opportunity for larger disruption in this space increases. This, combined with strong access to capital, results in growing competition and tight margins. Companies that leverage technology and create an innovative culture focused on exceeding their customers’ expectations have an opportunity to increase their share of wallet against large incumbents that are slow to adapt.

What do you like best about serving on a BCSC?

I appreciate the opportunity to interact with some of the brightest minds in our industry. ELFA has created a fantastic forum for diverse leaders to come together, share best practices and learn from each other while adding value to our industry. Additionally, the business relationships that form out of conversations with this group have had a positive impact on my business. Last, the shared professional experiences have developed into great friendships with people I respect and admire.