The leasing industry is undergoing sweeping digital transformation as changing customer needs and technological disruption upend traditional business models. The adoption of technology at the core of their business practices is unlocking the benefits of direct customer access, automation and new financing models for leasing companies operating in an increasingly competitive global marketplace.
Changing customer needs
Customer expectations have shifted, with technological disruption in other industries creating inflated expectations of service, personalization, convenience and simplicity. Today, leasing companies are investing in new technology to make it more convenient for customers to interact and engage with leasing companies, and to make products and services accessible on any device, anywhere.
The on-demand trend has also shifted customer needs to access over ownership: customers no longer necessarily want to own high-value items such as property or vehicles, but want to opt in to access to such items through a convenient leasing agreement. Recent Harvard Business Review studies show that the on-demand economy attracts 22.4 million customers annually in the US alone, generating $57.6 billion in spending.
The size and rapid growth of the on-demand economy is being driven by an improved user experience, added convenience and other personalized benefits to the end-user. And with nearly half of all on-demand users falling into the 18-34-year age bracket, all signs point to a future where on-demand services are even more pervasive than today.
Leveraging tech to fast-track innovation
SAP offers services that help our customers to deal with these new challenges. Our solution for the leasing industry is a combination of the S/4 HANA as well as the Hybris Portfolio, together with the SAP Leasing Solution and custom development components. It provides a market-leading solution aimed at companies that offer movable equipment leasing which supports their typical business processes from the lessor’s perspective. The solution allows integration with other SAP solutions such as SAP CRM for contract management, and SAP ECC for leasing accounting classification and revenues posting, creating new opportunities for financing in leasing.
It gives leasing companies the key to success: improving the customer experience. This is equally true for high-volume items such as vehicle fleets as it is for high-value items such as shopping centres. SAP Leasing offers leasing companies the following key benefits:
1. Full-service leasing, including repair and maintenance that can be automated through IoT and Big Data on a single platform. Imagine, for example, leasing a shopping mall, a multi-billion rand asset that carries enormous risk from even seemingly minor damage. By installing sensors and connecting them to a powerful digital core, the property owner could be informed automatically of any damage – such as from fires, or earthquakes – and address repair issues immediately. Cameras could detect potential threats, such as a group of people entering the building carrying weapons, and notify appropriate authorities.
2. Handling the complete contract lifecycle by using predefined and pre-integrated end-to-end processes, SAP’s solution enables customer self-servicing with access to all relevant applications.
3. Support for the full range of financing options, enabling leasing companies to offer individualized and personalized pricing models across currencies and languages, thanks to our global footprint.
4. Seamless integration into accounting processes, including automated lease classification and tax accounting.
Leasing companies can leverage the power of SAP’s global best practice and market-leading technology to become faster, stronger and to run simpler. SAP Leasing offers real-time, anywhere anytime customer interaction via multiple devices, with the ability for customers to manage their leasing request and enabling providers to cross-sell and upsell personalized recommendations for additional services.
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