Wolters Kluwer announced new first quarter analysis from its Equipment Lease Finance Digital Transformation Index, a key resource that tracks the rate at which equipment lessors and service providers are seeing growth in the evolution from paper-based finance back-office processes to digital. Click here to see the complete data report.
According to the Index, the rate of adoption for digital contracting increased 19 percent compared with the previous quarter, and 28 percent compared to the first quarter of 2023. The moving four-year trend continues to show digital adoption growth of 118 percent since Q1 2020.
Much of this growth is being driven by business spending, particularly small businesses, where investment is gradually shifting from retrenchment—after nearly two years of businesses cutting back in anticipation of a recession that never came—to a more offensive stance. For example, investment in “intellectual property products” (i.e., software, R&D and digital media) has far outstripped capital expenditures for new plants and equipment this cycle.
Furthermore, the Equipment Leasing & Finance Foundation (the Foundation) recently released its March 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market increased for the third consecutive month to 55.2, up from the February index of 51.7, and the highest level since April 2022.
“The equipment finance industry continues to reshape the way it handles transactions with businesses in all industries, and our commitment to embracing digital tools underscores our dedication to innovation and excellence for these lenders,” said Tim Yalich, Head of Motor Vehicle Strategy for Wolters Kluwer. “By accelerating the shift toward digital contracts, we are not only optimizing internal operations but also resetting the bar for seamless transactions in the equipment finance ecosystem.”