Many bank-owned auto and equipment finance providers and manufacturers’ captives today still rely exclusively on traditional financing. They finance an asset, and the customer commits to paying a fixed amount for a fixed term. However, customers now prefer more flexible full-service solutions—making traditional finance offerings less relevant in today’s market.
Servitization of auto and equipment financing is a more responsive approach to a dynamic marketplace. It represents a fundamental shift from a ‘build it and sell it’ mindset. Instead, it seeks to optimize the customer’s experience with the asset.
Customers can appreciate benefits such as:
- Flexibility and variability
- Convenience and one-stop shopping
- Multi-channel engagement
- Cohesive end-of-lease experiences
Meanwhile, auto and equipment financiers can propel their businesses forward and gain:
- Increased cash flow and the release of working capital for other business initiatives
- Enhanced competitiveness and productivity, and faster time-to-market
- Improved infrastructure and innovation
- Less harm to the environment and more responsible economic growth