Advancing its mission to be the equipment finance industry’s “eye on the future,” the Equipment Leasing & Finance Foundation (Foundation) releases the “2024 Industry Future Council (IFC) Report: Promoting Innovation and Experimentation in Equipment Finance.” The study focuses on the large, growing role of technology and innovation in the equipment finance industry, and the risks and opportunities associated with them over the next three to five years.   

The facilitated discussions of this year’s IFC participants identified three key areas to consider in developing the strategy for a company’s optimal level of technology deployment and innovation:

• Customer preferences for personalized engagement –  The study reveals that 80% of customers say that the experience a company provides is as important as the actual products and services they provide, and 78% expect companies to adapt to their changing needs and preferences.

• Employee experimentation with new technologies in a structured, coordinated manner - Equipment finance firms must be willing to experiment and innovate to stay competitive, and need a defined innovation strategy that prioritizes experimentation that’s not at the expense of a firm’s core strengths.

• Cybersecurity risk recognition and management - Building on previous work commissioned by the Foundation on cybersecurity practices and combatting fraud, the IFC concluded that an effective cybersecurity posture requires a combination of people, processes, and technologies.   .

The study presents three main sections to guide organizations in addressing these issues:

• Section 1 describes how equipment finance firms are using technology to interact with their customers and clients more effectively, and promising tools and practices currently used by some IFC member companies.

• Section 2 discusses the importance of experimenting with new technologies using the “Innovation Curve” as a conceptual framework, and provides the IFC’s views on generative artificial intelligence and blockchain, two hot technologies receiving outsized attention.

• Section 3 summarizes vulnerabilities businesses may face with new technologies, and describes potential strategies for defending organizations against cybersecurity threats.

“While the equipment finance industry has traditionally been slow to adopt cutting-edge technology, our future success relies on our ability to embrace new advancements,” said Zack Marsh, Chair of the Equipment Leasing & Finance Foundation and SVP, Accounting and Analysis, AP Equipment Financing. “The Foundation hopes that the IFC’s work influences equipment finance leaders to develop their own innovation strategies that lead to increased experimentation with emerging technologies so the industry is better positioned to thrive in the years ahead.”

This year’s IFC report was written by Keybridge, an economics and public policy research firm selected to facilitate the 2024 IFC. The IFC is comprised of a cross-section of equipment finance industry executives who participated in a full group brainstorming session and four breakout team sessions to further facilitate discussion.

The Foundation is grateful to the 2024 IFC sponsors, Equifax, LTi Technology Solutions, and Solifi.

The IFC Report is available for free download here.

All Foundation studies are available for free download from the Foundation’s online library here.