Banks Face Uncertainty in Current Environment

Jill McKean-Bilby
Huntington Equipment Finance

What’s happening in the bank sector of the equipment finance space? Equipment Leasing & Finance magazine caught up with Jill McKean-Bilby, Equipment Finance Sales Executive at Huntington Equipment Finance, to find out. McKean-Bilby is Chair of the Bank Business Council Steering Committee (BCSC), which represents bank-owned and bank-related organizations that use internal funding, including bank departments, divisions and affiliates, as well as divisions and subsidiaries of bank holding companies.

What do you feel are the most pressing topics for ELFA bank members this year?
Our ELFA bank members are faced with continued macroeconomic and political uncertainties in the light of an election year, including Middle Eastern tension. Inflation is at an all-time high with signs of a recession, which impacts our customers’ business plans and causes them to face increased pricing on goods, materials and labor.

Many equipment dealers have a surplus of equipment after a long period of equipment shortages post-pandemic. Interest rates have been on the rise over the last couple of years, and uncertainty remains on whether the Fed will call for a rate cut this year after all. We all remain hopeful. With the higher interest rates, equipment is not moving as quickly—and budgets are having to be reassessed for banks and our customers.

Many banks have slowed production due to last year’s movement of deposits, while others that have capital to grow have taken full advantage of the current economic environment and are thriving. Deposit interest rates remain competitive, which helps feed the lending engine. As a result of the deposit crunch, opportunities remain for banks that have an appetite for acquisitions and expansions of their product offerings. The balance continues with trying to maintain finance margins and bank costs, all while trying to help our customers succeed during this challenging time.

How did you get involved with the BCSC? Would you recommend it to others?
I have been a part of the equipment finance industry for almost 25 years. Half of my time was with GE Capital (through acquisitions) and the other half was with bank leasing companies. My involvement with ELFA really grew when I became the business leader of a bank equipment finance business. I began attending the Annual Convention and networking with others who were leading and learning alongside me. I had a desire to get involved more in ELFA, and was elected to be a part of the BCSC.

It has been a great opportunity to serve on the committee for nearly four years, and now as Chair. The BCSC has provided me with invaluable information on the industry, markets and networking with others. I have truly made friendships and broadened my network and knowledge. We have shared struggles (like last year’s bank crisis) and celebrated many successes.

I would recommend that individuals interested in the BCSC join and embrace getting involved. I have thoroughly enjoyed serving the industry by being on this committee. It has allowed me to experience advocating for the industry at Capitol Connections, attending the Women’s Leadership Forum, attending the Bank Roundtable annually, and learning more about the industry and economic trends at the Annual Convention.