Our recent survey findings reflect that both front-end (originations) and back-end (servicing) platform replacement continue to remain as key initiatives equipment finance companies are looking to undertake as the average life of current systems in place continues to rise.
Key BTPI Findings:
- 35% of respondents indicated a front–end system replacement and 27% indicated the back-end system replacement would be considered in the next 18 months
- Core front-end and back-end platforms were reported at an average life of 10.3 and 12.8 years respectively in terms of their time in use
- Other key initiatives to be undertaken by equipment finance companies include business intelligence improvements, electronic signature solutions and better integration with other various systems
- 63% of respondents indicated that core back-end systems do not meet future business needs while 54% reported the same for core front-end systems
We asked equipment finance companies how they viewed themselves against each of these value disciplines : operational excellence, customer intimacy and product leadership.
Key Customer Intimacy Findings:
- 58% of respondents view “customer intimacy” as the number one value discipline for their organization
- 77% of respondents use Customer Relationship Management (CRM) systems as a tool to drive customer intimacy while 35% also use big data solutions
- 46% of respondents indicated they collect a “medium” level of detailed customer information that is not segmented into target markets
- 48% reported that integration to a CRM system is .one of the top features that is either missing or most highly deficient in their front-end platform