The asset finance industry is at the heart of our global economy. Our industry is the gateway to the funds needed for everything from start-up organizations to large enterprises. As more diverse asset classes are being financed, and new lease and loan products are introduced, it is important for financial service companies to adopt technology to help support their growth and the continued evolution and innovation of their product and service offerings. Cloud based technology offers the flexibility and scalability required to facilitate and accelerate growth.
In the next few weeks, we will look at how cloud is impacting the equipment finance industry and even more specifically your bottom line. There are a lot of advantages to transitioning to the cloud, but there are also several important aspects to take into consideration before making this step.
Transitioning to the Cloud. Cloud is not new, but the ability to shift traditional enterprise workloads to the cloud and have vertical software applications delivered through the cloud remains an emerging trend in the business-to-business (B2B) financial services sector. This trend will only increase as the benefits associated with cloud outweigh any reservations or concerns financial services firms may have with moving lease and loan origination and portfolio processing to the cloud. In recent years, cloud applications have become mainstream in the daily lives of consumers, but comparatively slow adoption has taken place in financial institutions, particularly within the asset and equipment finance sector. Even with slow adoption in our industry, some more innovative companies are leveraging the cloud to help increase efficiency and provide a competitive advantage over companies who have not yet made the strategic move.
Recently, there have been several significant announcements of larger financial institutions making this transition. Capital One recently announced their intention to move as many of its applications as possible to the cloud. National Australia Bank has followed suit and announced that they are partnering with Amazon Web Services (AWS) with a goal of migrating more than 300 applications, including some core banking systems, to AWS by the end of 2019. This is not limited to large financial institutions; small to medium lessors are also embracing this transition. North Star Leasing, based in Burlington, Vermont USA earlier this year announced a move of its entire portfolio management system to a software as a service (SaaS) cloud solution.
The first movers are gaining a competitive advantage. They have embraced the efficiency and cost savings provided by the cloud and can redirect resources towards helping their organization grow. Want proof…take a look at this video where North Star Leasing shares how moving to the cloud has helped them better serve their customers.
Ray Wizbowski, Vice President of Marketing