Over course of the last few weeks we have had an ongoing discussion on the power of cloud technology for asset finance organizations – big or small or somewhere in-between. We have covered the value of cloud as it reduces the need for IT resources and staff. We have discussed the ability to better connect into the ecosystem of technologies to create a seamless workflow from origination to asset disposition. We have explored the flexibility of the cloud through consumption-based pricing and the ability to scale up or down as your business requires. As we wrap up this blog series, I would like to look to the future of what cloud-based solutions can do for the industry.
At our recent ConnectionPoint event, Deborah Rueben, Asset Finance Industry Technology Consultant said, “Cloud is the on-ramp to awesome”. We couldn’t agree more! She went on to describe how cloud enables technologies like artificial intelligence (AI), blockchain, and machine learning. While these technologies will take some time to become integrated into the mainstream, there is progress today worth noting. As we look to the future, the following should be top of mind as we look for ways to improve the way that we operate and advance our businesses.
- Artificial Intelligence (AI) – Earlier this year, I wrote a blog about AI titled Will AI Replace Leasing Professionals? While this is a loaded question, the intent was to draw attention to some of the new technologies that could be easily applied to the asset and leasing finance industry. For example, AI based meeting scheduling is a simple way to begin leveraging this technology. With more acceptance, I can see AI being applied to risk based decisioning in the origination process to help expedite the application through your established workflow. Human review would need to be required at first to ensure the system is looking at all of the established variables, but in time the system would be able to identify which applications meet criteria aligned with the funding institutions risk profile and are best suited for approval.
- Blockchain – Blockchain or distributed ledger technology continues to gain traction in mainstream financial applications. We are all familiar and maybe a little concerned by the volatility of the most publicized blockchain technology: cryptocurrency. But there are many other applications of blockchain that have real value for the asset and equipment finance industry. One of the most relevant examples would be asset title and maintenance records. By putting ownership, transfer of ownership, and asset maintenance on a blockchain any future use of an asset would have a detailed accounting of the asset’s history and its ownership. Providing this information as non-disputable fact could provide for better decision in the remarketing of an asset
- Machine Learning (ML) – Similar to AI, machine learning a method of data analysis that automates analytical model building. The basic concept is that systems can learn from data, identify patterns and make decisions with improved accuracy and minimal human intervention. With the incredible amount of data that is available, this technology could be applied throughout the leasing lifecycle. For new leases, the system could look at the available information on the applicant, variables on other similar business, create a risk score, and ultimately make a funding decision. The real power of ML could be realized in remarketing assets after disposition. ML could look at the data covering on the asset (possibly derived from a blockchain record) and combine this with information of the applicant and pull in market variables to build the best pricing model for the applicant. Go one step further, and ML could identify the best parties for remarketing based upon know needs, triggering outreach to identified interested parties, further simplifying the secondary and beyond leasing process.
There is no denying cloud will become an increasing part of our industry. It will take some organizations longer than other to adopt based upon the sheer size of their deployments, but we are seeing even with these customers the need for cloud-based solutions to augment their current technology. With IDScloud, we have seen lessors gain the benefit of transitioning their data to our cloud environment in a little as 10 weeks by utilizing our team of seasoned professionals to provide the managed services required to support their ongoing growth. It is our belief that this technology will pave the way for better customer engagement and customer services allowing you to accelerate the growth of your business.
Interested in learning more about how easy it is to transition to the cloud? Download the IDScloud Quick Start Guide.
Ray Wizbowski, Vice President of Marketing