Digital transformation of paper processes critical for optimizing the customer experience
In a space that has experienced a considerable level of digital transformation in recent years, equipment lease and financing firms continue to persist in an over-reliance on paper processes for a number of customer-related transactions. Given increasing customer demand for digital transactions, equipment lenders would benefit from looking closely at how to further transform their processes, according to Wolters Kluwer Compliance Solutions.
”Digitization of the entire process will solve several key pain points for the industry. First and foremost, digitization will significantly improve the risk and liability of exposed PII (personally identifiable information) in a paper-based environment. There are major inefficiencies and added costs to manage paper, keeping up with revisions,” explains Tim Yalich, Head of Automotive Strategy, Compliance Solutions, Wolters Kluwer in an article for Equipment Finance Advisor. “What’s more, a paper-based environment often results in the use of outdated contracts, which usually leads to lender rejections, and paper returned to the customer, which further increases the risk of exposure.”
Yalich speaks to the benefits of purpose-built, digital ecosystems, and how equipment finance and lease providers can leverage these digital ecosystems, which “will help to control and track access, manage status changes, and transfer control of digital documents while utilizing sophisticated granular controls and permissions to allow for departmental separation and visibility,” he writes. “All of this will result in improved speed and process efficiency, and for lenders particularly it will free up capital through syndication, sale, or securitization,” Yalich adds.
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