What’s happening in the captive and vendor finance sector of the equipment finance space? John Mizzi, CEO of Vero Technologies checks in with this issue’s Business Council Update. He is Chair of the Captive and Vendor Finance Business Council Steering Committee (BCSC), which represents members from financial services organizations providing sales-assisted financing and vendor- and manufacturer-support activities, either on a third-party or captive basis.
From your perspective serving on the Captive and Vendor Finance Business Council Steering Committee, what issues are captive members of ELFA focused on this year?
Captive and vendor finance organizations are balancing several priorities at once this year. The macro backdrop remains important, particularly around tariffs, supply chain shifts, and broader regulatory uncertainty. Those issues have direct implications for OEMs, dealers, customers, and portfolio performance, so they are a clear area of focus for the committee. We are addressing those themes directly through sessions on trade, supply chain dynamics, and the evolving federal and state policy environment.
Technology and business model evolution are also front and center. Many captives are actively evaluating how to modernize legacy systems, use data more effectively, and understand where AI can create practical value across origination, servicing, risk management, and customer experience. We are bringing in third parties this year to help members think through AI and its likely impact on our industry in a practical way. We also have sessions planned around technology architecture, modernization, and change management.
Another area of strong interest is product innovation. In particular, we are bringing in outside perspectives on Equipment-as-a-Service and other emerging consumption-based models. That is an important topic because it sits at the intersection of product strategy, servicing complexity, residual risk, and customer demand. Members are increasingly interested in how these models may complement traditional leasing and financing programs.
Policy issues are another major focus. Right-to-repair is a good example, as it raises important questions around intellectual property, service economics, collateral values, and portfolio management. We have dedicated time this year to bring in outside experts to discuss those implications for manufacturer-affiliated finance businesses.
Which ELFA resources do you find useful in your business or professional development, or would recommend to other ELFA captive and vendor finance members?
ELFA’s research is one of the most practical resources the association offers. The Monthly Confidence Index (MCI) is useful for understanding how peers are thinking about the market in real time, and the CapEx Finance Index (CFI) is a strong tool for grounding strategy discussions in actual industry activity. I also find a lot of value in ELFA’s conferences, roundtables, and committee programming because they create a forum for practical exchange across captives, banks, independents, and service providers. In my experience, the peer dialogue is often just as valuable as the formal content.
What aspects of participating on the committee have you found most meaningful or impactful?
The most meaningful part of serving on the committee has been the quality of the peer dialogue and the ability to shape conversations around issues that are highly relevant to captive and vendor finance leaders. It is valuable to have a forum where members can compare notes on strategy, risk, technology, product innovation, and talent, while also learning from outside experts who bring fresh perspective.
I have also found the relationship-building aspect to be very impactful. Committee participation creates space for candid discussion about what is changing in the market, what is working operationally, and where organizations are seeing friction. Over time, those conversations build trust and make the committee a more useful sounding board for its members.
