In technology, Moore’s Law is the theory that the number of transistors on a microchip doubles every two years. In other words, the technology’s growth is exponential.
Technological advancement and growth within equipment finance companies can also feel that way.
“Technology is changing at the slowest rate it will ever change in our lifetime. And it’s still moving pretty darn fast,” says Tawnya Stone, Vice President, Strategic Technology, at GreatAmerica Financial Services, an equipment finance company based in Cedar Rapids, Iowa. Stone is also Chair of the Operations & Technology Committee, which helps plan the annual and much-anticipated ELFA Operations & Technology Conference and Exhibition, which will take place Sept. 9-11 in Nashville, Tennessee.
For operations and technology professionals in the equipment finance industry, keeping up with that pace of change requires vigilance, education and connection with other industry professionals to stay informed. Equipment Leasing & Finance magazine spoke to members of the Ops & Tech Committee about some of the top trends and issues members are facing now—each of which will be addressed at the conference.
1. Optimizing efficiency and reducing costs
As member companies seek to do more with the resources they have, increased efficiency is a key focus. And the right solutions to improving efficiency may vary from company to company. However, the solutions typically involve a combination of people and technology, also taking into consideration the very human concerns around technology’s impact on jobs, says Chelsey Barron, Vice President of Sales Operations at LEAF Commercial Capital, Inc. “Managers are looking for the best ways to get people and technology working together, empower employees, remove the fear of technology and, ultimately, find answers,” she says.
“Technology is changing at the slowest rate it will ever change in our lifetime. And it’s still moving pretty darn fast.”
—Tawnya Stone, GreatAmerica Financial Services
Emily Krause, Director of Frontline Risk Management at First Citizens Bank Equipment Finance, an equipment finance company based in Jacksonville, Florida, says that artificial intelligence (AI) can be an important tool in optimizing efficiency. She says members are using caution in adoption, however, to ensure that the technology doesn’t make them run afoul of regulations, such as making inappropriate lending decisions or unfair denials. “The EU [European Union] has published regulations, but there have not been strong regulations published in the U.S. yet,” she says. “I’m a risk manager for the equipment finance division at First Citizens Bank. When my boss asks me what keeps me up at night—it’s that.”
 | Operations & Technology Conference Tip: Don’t miss the session “Keys to Optimize Business Process for Increased Efficiency and Reduced Costs.” |
2. B2C customer demands in a B2B world
From personalized service to elegant online interfaces, advances in the business-to-consumer (B2C) market are affecting the business-to-business (B2B) market. And companies in the equipment finance world are challenged to meet those expectations, Stone says. That requires finding solutions that integrate into existing systems to ensure an easy, intuitive and frictionless experience when conducting transactions or communicating with your organization.
“There have not been strong [AI] regulations published in the U.S. yet. When my boss asks me what keeps me up at night—it’s that.”
—Emily Krause, First Citizens Bank Equipment Finance
“How do we take what could be legacy technology and still deliver that experience that our customers want because they have it in their everyday world?” she says. Seeing real-world applications and connecting with colleagues about what has worked for them can help members navigate this challenge.
The speed at which customers expect responses is also increasing, says Dominic Janney, President at Canon Financial Services. He says his team used to have had to implement workarounds for its business. “An example was the pursuit of our lease broker relationship, and how our previous platform didn’t allow brokers to be part of that process—we had to record and track them manually. The process was inefficient. The new system not only supports this initiative providing full visibility, but it also has also made our process more efficient,” Janney says. Upgrading allowed the company to shed inefficiencies and make customer interactions more seamless.
| Operations & Technology Conference Tip: Check out the session “Regulations vs Customer Experience: How Does B2B Software Deliver?” |
3. Building powerful partnerships to spur innovation
Of course, navigating challenges and shifting demands can often be made easier with expertise and tools from the right partners. However, finding those resources can be a challenge in and of itself. Krause says she finds the Operations & Technology Conference’s “lightning rounds” are a two-pronged solution to finding these answers, allowing her to both get an overview of the broad range of technology available and, as an introvert, allowing her to decide how to “use her social battery” as she connects with prospective vendors.
“You need a system that can provide the customer with the form of financing they want. Standard one-size-fits-all just doesn’t work anymore.”
—Dominic Janney, Canon Financial Services
Janney says that the right investments with the right partners can spur innovation, as well. “We are now working with our channel partners on more intricate subscription billing. Our old system couldn’t entertain it. The as-a-service model is becoming more prevalent in just about everything,” he says. Now, he and his team can customize the components of how a client wants it billed and what their customer sees on an invoice. “You need a system that can provide the customer with the form of financing they want. Standard one-size-fits-all just doesn’t work anymore,” he adds.
| Operations & Technology Conference Tip: Make sure to attend one of the Exhibitor Lightning Rounds held during the event.. |
4. Preparing for the future
As changes come fast and furiously in the equipment finance industry, member companies are tasked with predicting the future in many ways to make the right decisions about where to invest to meet changing customer needs and demands, upskill employees appropriately, invest in the right talent and technology, and otherwise prepare for what’s next.
“As the B2B ecosystem evolves with rapid technological advancements, businesses face an increasingly complex landscape.”
—Sarah Tezuka, Solifi
Of course, that’s no small feat. The Equipment Leasing & Finance Foundation’s Industry Future Council is examining these issues and will be issuing a report this year, says Shari A. Schmidt, HEF Operations Manager and Vice President of Huntington Equipment Finance in Cincinnati, Ohio. “Their focus this year is technology trends and they’ll be giving us a look at what to expect within the next three to five years,” she says. “Having that insight helps us know what to anticipate next.”
Stone says that merging those trends with real-world business problems is essential for companies to be effective. “Technology is rarely about the tech,” she says. “There should always be business problems that technology is solving.”
| Operations & Technology Conference Tip: Don’t miss the session “The Future of Tech & Business” with futurist Michael Rogers. |
5. New and increasing regulatory requirements
“As the B2B ecosystem evolves with rapid technological advancements, businesses face an increasingly complex landscape,” says Sarah Tezuka, a Product Manager with Minneapolis, Minnesota-based Solifi, a secured finance software solution.
This complexity is evident in a range of disclosure requirements, as well as state and federal regulations, including digital compliance with the Americans with Disabilities Act (ADA). Addressing the challenges requires a “thoughtful approach to solution development, one that harmonizes the user experience with the demands of regulatory compliance,” she says.
“It’s always great to catch up with industry colleagues and talk about the issues we’re facing.”
—Chelsey Barron, LEAF Commercial Capital
One area where virtually all companies are focused now is the expected implementation of Section 1071 of Dodd-Frank, a rule issued last year that requires creditors to collect and disclose more than a dozen data points regarding loan applications submitted by women-owned, minority-owned or LGBTQ+-owned small businesses (defined as having gross annual revenue under $5 million), their location and other aspects.
While collecting this data is challenging at best, different lenders have different challenges, says Krause. She has been working with member banks to determine the best way to collect the data. “When you’re trying to collect this information directly from the obligor—especially in an indirect sales environment, while still supporting our customer, not breaking private label and ensuring that our obligor knows why we’re collecting it—it’s been a challenge,” she says.
| Operations & Technology Conference Tip: Learn more at the session “Dodd-Frank 1071: What You Should Know.” |
So many reasons to attend the Operations & Technology Conference!
Members of the committee planning the Operations & Technology Conference, Sept. 9-11 in Nashville, share what they’re anticipating most.
Universal sessions on real-world issues
This year’s conference has a good mix of operations and technology topics, says Emily Krause of First Citizens Bank Equipment Finance. “Everyone is always looking for the bright, shiny, new toy. But we also need the basics of how to keep our businesses running. Do people now have business continuity plans?” she says. The single track of sessions covers a number of topics about which Krause is interested in learning.
Technology in the “real world”
“There are so many conversations about ‘cool tech,’ but they’re all conceptual,” says Tawnya Stone of GreatAmerica Financial Services. Stone is interested in hearing about how real-world peer companies found and deployed technology solutions. “I really get the most value when I hear from other people. And I can hear, you know, what went well? What were the struggles? How did they overcome them? What were the considerations?” she says.
New opportunities to connect
Chelsey Barron of LEAF Commercial Capital, Inc., looks forward to the opportunity to connect with established and new contacts. “It’s always great to catch up with industry colleagues and talk about the issues we’re facing in the industry,” she says. Barron is planning to make the most out of opportunities like the conference’s new “dine-around.” Attendees can sign up to be part of these small groups eating at various restaurants throughout the city. There will also be an opportunity to take part in a group volunteer activity. Information about both is available when attendees register for the conference.
A chance to rekindle industry excitement
Sarah Tezuka of Solifi says that the Operations & Technology Conference is a chance to re-engage with members and exhibitors across all areas of the industry and get excited about the industry and where it’s going. Sessions cover everything from keeping employees happy and dealing with fear of technology to a focus on pressing regulatory and operations issues. Learning about new providers through exhibits and short lightning-round presentations can also reveal exciting solutions to common challenges, she says. “It’s a chance to see how we are all going to move forward together as an industry,” she says.
Fun and friendship
“I’ve been in the equipment finance industry for 17 years. Over the years, you start to develop relationships, so it’s like a mini-reunion every time we get together,” says Shari A. Schmidt of Huntington Equipment Finance. After the pandemic, when getting together in person wasn’t possible, there’s a new appreciation for being able to reconnect in person, she says. She also hopes to encourage new attendees to participate in the dine-around and other opportunities to meet members. “There really wasn’t anything like that when I first started attending conferences. I didn’t know anyone,” she says. “But building relationships is important. It’s the relationships that keep us here.”
