The recent uptick in confidence for equipment leasing and business investments are driving a sustained push toward digital transformation in back-office operations
New York, NY — January 28, 2025 — Wolters Kluwer, a global leader in professional information, software solutions and services, announced today new fourth quarter analysis from its Equipment Lease Finance Digital Transformation Index, a key resource that tracks the rate at which equipment lessors and service providers are seeing growth in the evolution from paper-based finance back-office processes to digital. Click here to see the full data report.
According to the Index, the rate of adoption for digital contracting in Q4 increased 6% following a decrease of 23% last quarter. The Index increased 31% compared to Q4 2023, and it is also important to note that the moving, four-year trend continues to show digital adoption growth at 26% dating back to Q4 of 2020.
This trend of increasing adoption correlates to overall business investment also gaining momentum according to ELFA’s 2024 Survey of Equipment Finance Activity. New business volume rose 8.0% in the large ticket segment and 7.2% in the small ticket segment. What’s more the Foundation’s confidence Index in the equipment finance market reached 67.5 in November, up from the October index of 61.8, and the highest level since August 2021.
"The recent uptick in confidence for equipment leasing and business investments is driving a sustained push toward digital transformation in back-office operations,” said Eric Capehart, Associate Director of Market Strategy for Wolters Kluwer’s Digital Lending Solutions. “This trend reflects the industry's recognition that modernizing contracting, documentation, and workflow processes is imperative for enhancing efficiency and competitiveness in today's market. As businesses rebound and equipment leasing surges forward, eSignatures and digital documentation are becoming the new standard, enabling faster transactions and improved access to capital."
ELF securitization markets digital adoption trends
The digital ELF loan volume in securitization markets decreased 10% in Q4, yet the year-over-year adoption rate increased 25% compared with Q4 of last year. Over the last four years, the trend in digital adoption for securitization is up 23%, showing a continued positive adoption rate over that period.
The securitized markets and asset-backed securities (ABS) in the equipment finance industry showed mixed trends with an eye toward growth over the last twelve months. The equipment finance industry expanded to an estimated $1.34 trillion in 2023, with 82% of end-users using some form of financing for their equipment and software acquisitions.
To learn more and to access additional data insights from the Wolters Kluwer Equipment Lease Finance Digital Transformation Index, click here.
For more information about Wolters Kluwer, please visit: www.wolterskluwer.com.
About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software solutions and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutionsthat combine deep domain knowledge with technology and services.
Wolters Kluwer reported 2023 annual revenues of €5.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,400 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
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