The next stage in equipment finance automation
Like other service industries, equipment finance started its automation journey in the early 1980s with software. The increase in computational power at ever lower costs enabled companies to automate calculations, communications and eventually transactions with partners and customers. But highly regulated industries like healthcare and finance held on to paper documents and human engagement much longer than other industries - retail, manufacturing and agriculture exponentially increased productivity with automation as a result of digital technology. The good news is that equipment finance has continued its digital journey and gathered tremendous amounts of data along the way. Equipment finance companies today still have disparate data streams and as a result, struggle with both comprehensive business intelligence and how to use that data. But the combination of an enterprise’s dark data with modern, open, cloud- based software platforms including machine learning and AI tools will enable finance companies to enter the next phase of automation: prediction. performance.
A foundation for sustaining competitive advantage
Equipment finance companies today are flush with opportunities presented by data. Digital origination, contract servicing, and accounting systems have gathered data on business-critical outcomes like underwriting, funding, and payment delinquency for as many as thirty years for some companies. Most of this data is dark – rarely accessed or used by management in daily operations – even though it holds the historical record of the competitive success of the business strategy. The modern tools of machine learning and AI are ready to exploit dark data to improve competitive advantage and overall business performance.