In the current economic climate, where cost-to-income ratios are
under threat and efficiency measures are rapidly coming to the
fore, technology is likely to play an ever-increasing role in
leasing companies’ agendas.
Ken Meaden, a manager at CHP Consulting, a lease software
consultancy, told Leasing Life that, in response to the economic
downturn, lessors are moving away from finding new business and
towards a greater emphasis on relationship and collection
activities.
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He said: “Collections management can suggest the company is
focusing on failure in terms of the origination process. However, a
pragmatic approach must be adopted.
“It does not mean that sales channels are to be ignored and,
indeed, a bold lessor may opportunistically seek market share
against the uncertain economic backdrop. One approach could be to
widen the channels to market, increasing the sales net to achieve
the required quality, with technology controlling the cost of
acquisition.”
Meaden believes that for lessors, diversity in a secured
portfolio is an attractive prospect. Those lessors with exposure to
a single asset group can create significant shortterm profitability
concerns.
“In previous cycles,” he said, “we have seen vehicle residual
values create losses for those in the contract hire market. The
diversity in the asset financiers’ portfolio is a compelling
argument for allocating capital to the sector – if not of itself to
fuel growth, to achieve a well-positioned business, maintaining
attractive and consistent returns and capable of benefiting from
profitable opportunities.”
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