Returning to growth: the leasing industry challenges for 2011

Building knowledge of your client’s environment
Adding value

As 2010 comes to a close, many players in leasing industry have arrived at the same conclusions: A better understanding of clients, combined with a vast knowledge of products on the market are the main drivers of growth in our industry and must be placed at the heart of each player’s strategy.

Any growth initiative must integrate:

  • An analysis of the company best-performing market segments based on a substantial and detailed knowledge of its business; from clients to marketed products via physical and online distribution channels
  • An optimised management of client-related risk
  • Value addition and a better quality of service

Business knowledge and understanding

Each player must establish an internal management tool to identify the profitability of its products, as well as its customer structure and major account structure. Performing an advanced ROE analysis allows the removal of unprofitable products from the range, while defining which products are suitable to each customer segment in order to cement future customer loyalty.

Client Risk Management

The drawback from this strategy may be an increased exposure to client-related risk. It is therefore necessary to have a comprehensive overview of the client’s environment. From an operational perspective, it is important to move from a “contract” management to a “client” management model, using optimised risk management.

Value addition

Improving the quality of service is the key distinguishing factor in such a competitive environment as the leasing industry. Each player must innovate and generate added value without lowering its operating margins.

Three approaches are currently emerging on the market:

  • The risk-based tariff: using detailed portfolio segmentation it is possible to keep the margin while lowering the client rate.
  • The increase of margin with additional value-added services.
  • Cross-selling: the opportunity to evaluate and assess customer requirements for new financial products and services help optimise marketing campaigns and foster additional sales.

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Linedata EKIP, a comprehensive software solution that meets the needs of the leasing industry

Linedata Ekip meets the leasing industry challenges with a consistent, comprehensive and centralised approach.

A unique software solution to control your environment

Linedata Ekip manages all client liabilities, regardless of the financial method used: consumer and mortgage loans, leasing, revolving credit and so on. It also provides answers to the complex question of  data consolidation. This provides the opportunity to segment your liabilities portfolios into groups on a homogeneous database. The ROE can then be calculated by segment.

A centralised software solution that ensures consistent client follow-up

Linedata Ekip manages liabilities, lines of credit and guarantees all in one product.

Through lines of credit, Linedata Ekip allows you to manage financial liabilities (lines of credit) and contingent liabilities (buy-back agreements).

Whether they cover an asset, a contract or the totality of the client’s contracts, the guarantee management functions help you manage the lifecycle of all guarantees provided by the client.

Adding value through comprehensive offers

Linedata Ekip can handle all the aspects of the leasing and credit industry. You benefit from cross-business synergies and the opportunity to foster additional sales.

For example, you can opt for full-service rental or revolving credit facilities in leasing contracts without changing your technical infrastructure.

You can also manage the contracts of your service suppliers with a unique agreement thanks to Linedata Ekip’s service management functions. You can provide your clients with comprehensive services. Linedata Ekip will handle all the operations related to the implementation of this offering: management of claims and maintenance operations, client invoicing and payment to suppliers (including advanced “open-book” services).

Thanks to years of experience with professionals of the leasing industry, Linedata and its Linedata Ekip software solution can support both your geographical or product growth strategy.