As ELFA embarks on the Innovation Experience, we wanted to take a look at how members have been advancing momentum and incorporating innovation on a daily basis. We spoke with four leaders of ELFA member companies to glean some insight into what’s happening in the field.

The approach

Every company approaches innovation differently, and defines the drivers of innovation differently. Across the board, though, we found leaders embracing innovation in their entire way of doing business, as opposed to only implementing incremental pieces of activity prefaced by use of the “innovative” adjective.

“Innovation is a part of the company culture,” says Amanda Bialka, senior syndication specialist at Oakmont Finance. “The people we hire are out-of-the-box thinkers, which leads to natural innovation.” Employees are encouraged to question existing ways of doing business, look for ways to improve the customer experience, and openly discuss ideas with colleagues and management.

Likewise, at Cisco Capital, innovation is ingrained into the fabric of its business. The company focuses on financial product innovation that benefits the changing climate of customer technology acquisition needs, according to Nick Small, president. He cites its ability to quickly adapt systems to empower customers with payment and lifecycle solutions. “This allows them to optimize their balance sheets and cash-flow positions,” he says.

“Remaining stagnant is not an option.” 

—Rob Carron, executive vice president and chief information officer, Mitsubishi HC Capital America

People, process, technology

The ability to adapt to customer needs is a mainstay at Mitsubishi HC Capital America. “We view innovation as a strategic mindset, constantly assessing current and future customer needs to identify new opportunities,” says Rob Carron, executive vice president and chief information officer. “Maintaining the status quo is not an option.”

Mitsubishi HC Capital America puts innovation into action through three core pillars: people, process and technology. “Our people are the driving force behind our success,” Carron emphasizes. “Working with the latest technologies, they can increase operational efficiency.” The result, he says, is the ability to develop tailored solutions that meet exacting customer needs and deliver measurable business value.

Changing the business model

QuickFi approaches innovation as an entirely different way of doing business. “Optimization is one thing,” explains Bill Verhelle, CEO. “Changing your entire business model is a very rare thing – and extraordinarily hard.”

QuickFi’s work in embedded finance is a result of that take on innovation, he says. Integrating financial services into non-financial offerings, embedded finance represents a transition from traditional financial sales to borrower self-service at the point of sale.

While transition from traditional sales business models to digital borrower self-service is well underway, says Verhelle, business equipment financing still operates on a traditional sales delivery model. “What we are doing – changing the model to put the customer in charge – is hard, disruptive and fundamentally different in our industry,” he explains. It’s an approach that he believes will significantly impact the global equipment financing market over the next five years.

Making innovation actionable

The ELFA Innovation Experience is all about making innovation actionable. Members are doing just that, creating and implementing innovative programs and processes with bottom-line results. And it’s no surprise that artificial intelligence (AI) applications are leading the way.

For example, Oakmont is utilizing AI in its syndication business. “We are always working to match what we have in our portfolio to the needs of individual buyers,” explains Bialka. AI tools help identify potential fits much faster and more accurately, she says, opening up time to concentrate on analysis and personalization. “We can focus our efforts on developing new business and deepening our business relationships.”

Empowering AI

At Cisco Capital, tech-driven financing solutions are helping customers and partners empower their AI-driven infrastructure adoption. The company developed hardware-as-a-subscription payment solutions that are available for AI Infrastructure, WiFi 7 and any Cisco technology, while Cisco Choice Pay is available in designated countries around the world. The company is seeing customers and partners quickly leveraging these solutions, according to Small. “Shifting from the traditional hardware ownership paradigm with a subscription-like experience enables better alignment of IT investments with desired business outcomes,” says Small.

“An inquisitive and energized culture is key. It keeps the wheels turning.” 

—Amanda Bialka, senior syndication specialist, Oakmont Finance

Mitsubishi HC Capital America has incorporated a customized AI predictive purchase model into its technology stack to help identify key customer behaviors and milestones. The use of the model is helping the company to more precisely understand customer needs, and tailor products and services accordingly.

Using the AI model in this way is allowing Mitsubishi HC Capital America to more effectively leverage both customer data and its own data, says Carron. “Customers can make smarter and faster decisions, while our operational efficiency increases.”

Embedded finance

QuickFi is pioneering the use of AI in developing and implementing its digital, embedded specialty financing delivery model. The company’s Agent AI is a 100% digital, self-service platform that lets small- and mid-sized businesses use QuickFi to self-serve business equipment financing loans and leases from anywhere, on a 24/7 basis. According to Verhelle, the platform eliminates the need to manage complex equipment leasing software systems, and eliminates costly servicing, collection, customer service, IT, security and other staff costs.

Integrating with internal sales teams, and dealer or distributor networks, the QuickFi platform helps to increase closing rates, improve product sale margin and shorten timing to close. In fact, next-day funding is often possible.

The role of technology

Members are increasingly identifying and implementing advanced technologies. QuickFi, for instance, incorporates facial recognition, drivers’ license authentication, AI, blockchain, and other cloud and mobile technologies, even white-labeled with customers’ brands.

Yet innovation is not all about technology. “While implementing technology to support our business model is a key priority, it cannot be the sole driver of innovation,” says Carron. “Instead, innovation is deeply embedded in Mitsubishi HC Capital America’s culture,” he explains. “It extends to thinking about new ways to better understand our customers, and then utilizing new techniques to further that mission.”

“Our people drive innovation.” 

—Nick Small, president, Cisco Capital

He goes on to explain how empowering employees with the support and processes to innovate has fostered a culture of collaboration and ownership. When teams feel more invested in driving change, the pace of innovation accelerates, he says. “We are committed to creating a culture of continuous learning that empowers our employees to leverage their combined technological expertise,” he continues. “In doing so, we enhance customer experiences and drive operational efficiencies.”

Oakmont Finance’s similar stance encourages a mindset of looking for ways to handle tasks and processes differently. “New technologies lead the way for us,” says Bialka. “But at a higher level, we are always asking why we do something a certain way.” Every employee, at every level, she says, has the opportunity to discuss new ideas and ways the company can approach business more productively and efficiently.

Internal implementation of innovation

Innovation efforts aren’t solely about the customer experience. Members are implementing initiatives internally, and reaping results.

For example, Oakmont Finance has introduced improvements in the credit and payment areas of its business. The cleaner, more accurate data boosts automation and reduces human error, according to Bialka.

Cisco Capital maintains an extensive set of measures and metrics to monitor the success of its innovative initiatives. Ranging from financial performance and market impact to adoption and risk management, metrics focus on cost, benefit, efficiency and effectiveness – all relating to the company’s overall business objectives. “By continuously tracking these metrics and adjusting strategies based on outcomes, we can ensure innovative initiatives are effective and aligned with our overall goals,” states Small.

“The type of change that involves changing your business model almost never happens in American business. But it’s what will impact the U.S. and the global economy.” 

—- Bill Verhelle, CEO, QuickFi

The company also launched an Innovation Challenge with cross-functional teams to address key opportunities that can drive faster innovation. “We provide resources and support, encourage accountability, and drive collaboration and partnerships,” says Small. “It all works together to sustain momentum in the business.”

Mitsubishi HC Capital America, according to Carron, is investing heavily in a new cloud-based data environment for core operational reporting, predictive analytics, machine learning and AI. “This environment assists in spotting market trends and optimizing business focus,” he says.

Moving forward

The opportunities to engage, reimagine and transform through innovation are infinite. Every member company is working with unique tools, insights and ideas to implement innovation at their own pace, in their own way. Equipment finance industry leaders understand that innovation is a natural, integral part of doing business, and it’s about making a difference. “People want to do something that matters,” concludes Verhelle. “When you are addressing existing problems in the market, helping businesses and supporting the economy, it’s working.”