I’ve often spoken, here and elsewhere, of how the
leasing industry can better position itself as a vital product
within the public consciousness.
As anyone can tell from the undercurrent of
discussion when lessors compare notes, asset finance organisations
across the continent are being weighed up against other lending
businesses by shareholders, and compared against other means of
commercial finance by potential customers. They must work hard to
convince both of their value.
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One way the strength of the asset finance
product can be bolstered is for it to become an integral part of
the industries of which vendor customers, in particular, are a
part.
The march of progress in the field of IT,
highlighted in this month’s asset feature (Life in transition page
16-17), shows huge developments in the way companies use software
which will – if they have not done so already – change the
world.
Finance plays a vital part in enabling
companies to adapt to these changes and ultimately improves what
they can do to the benefit of their customers. As GE Capital’s
Christian Bernhard says in the piece, “nobody can pay cash for
that”; quite simply, finance is a vital component in the software
models that are emerging.
At last year’s Leasing Life conference, Lindsay
Town suggested leasing could well be described as a service rather
than a financial product and the idea is far from radically
new.
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By GlobalDataThe fleet sector, for example, has for some
time aligned itself under the concept of ‘mobility’ as a service.
It is not about financing vehicles, it is about providing mobility
for businesses – and ultimately people – at a given rate.
The near-ubiquity of the term ‘solution’ shows
us that lessors see their offering as more than just a way of
paying for something or lending money. If they can convince
customers and shareholders alike of the same thing, their
prosperity will be assured for some time.
As a journalist reporting on the industry, it
is not for me to dictate these sort of changes, but I will stress
that Leasing Life is a platform for you, the members of the
industry, to discuss these and other ideas.
I’ve made a lot of noise previously about what
a good idea it is for readers to write in with their views, both
private and public, and to air them online via twitter or our
LinkedIn group. I’m also not too proud to admit that these feelings
are partly motivated by modern publishing’s hunger for
“user-generated content”.
However, I also know that word from those
working at the coalface of the asset finance market is an essential
counterpart to the kind of analysis that journalists – with the
best will in the world – can only ever achieve from a distance.
Like Chris Stamper of ING Lease’s letter to the
editor last month, reader correspondence sheds light on subjects –
in that instance government-assisted lending schemes – where the
reaction of the asset finance industry to the issue at hand is the
most important half of the story.
This month, we print a letter from Aldermore
leasing chief George Ashworth, in his capacity as an FLA board
member, inviting collaboration and coordination between the
increasing number of organisations connecting leasing companies
(Golden opportunity page 22). I hope it encourages yet more letters
from subscribers.
George has a lot to say on how those with a
proactive attitude can raise the profile and promote the interests
of the asset finance industry. I think anyone would agree that
there has rarely been a more important moment to make efforts in
this direction.
Fred Crawley
fred.crawley@vrlfinancialnews.com
