1. “The world has gone through a shift from the industrial age to the
information age,” says Farooq Ghauri, COO of NetSol Technologies.
“The information / technology age is more about survival now and, if
done correctly, it can take a company to the forefront of its industry.
Equipment finance companies can create differentiators that will
give advantages in costs, reduced processing time, increased busi-
ness differentiator (product) and accurate data processing among
many others.”
“In today’s world of immediacy, streamlining and automating
business processes is more important than ever in providing a good
customer experience,” says Jeff Van Slyke, president of LeaseTeam.
“Businesses are using technology to automate workflows and define
the data that is required at each stage of a process. Automated
workflows add efficiencies, reduce errors, facilitate communication
and provide important tracking and analytics. Using technology to
automate workflows is the foundation for providing top-tier service
to your clients.”
“In today’s fast-paced, mobile-enabled world, technology is
now more important than ever,” says Michael Campbell, CEO of
International Decision Systems. “It helps companies attract and
retain customers through seamless and consistent levels of service.
Built-in analytics allow companies to anticipate customer needs and
be more proactive with offers. By the same token, technology is the
best way to improve margins.” > >
I
n our 25th Anniversary Monitor 100 issue, Key Equipment
Finance President Adam Warner said, “The role of technology
has had a substantial impact on equipment finance and will
continue to do so. Technology impacts every facet of our businesses,
and it impacts every industry, from agriculture to energy to health-
care. I anticipate that we will continue to see more focus on innova-
tion and technology across all markets well into the future.”
Based on feedback from our readers, Warner is correct. Many
in the industry are increasing investment in technology to improve
customer experience and internal processes while adapting to
changes in lease accounting, compliance, regulation and security.
Staying on top of rapidly evolving technology is no easy task.
Monitor checked in with the leaders of five technology software
companies that serve the equipment finance industry to examine the
best ways to plan for and implement software upgrades.
Staying in the Lead
Today’s equipment finance companies face more competition than
ever before. How can investing in technology give a company an edge
against competitors?
“Technology is a crucial enabler in almost every aspect of busi-
ness,” says Richard Raistrick, director of operations, North America
of CHP Consulting. “Put simply, businesses that invest wisely are
building a long-term future, while those that fail to make the right
decisions will become uncompetitive. The changes in technology
over the past 15 years can be likened to the impact of mechanization
on the industrial revolution in the 1800s. The impact of the change is
that large, and it will continue for decades.”
Thriving in the Information Age:
Building a Long-Term Future with Technology
BY RITA E. GARWOOD
The leaders of five technology companies discuss the best way equipment finance companies can plan
for and implement a software upgrade. They explore the early planning phase, how to select a vendor and
how ticket size and asset classes can affect technology needs.
20 • monitor • JUL/AUG 2016

2. JUL/AUG 2016 • monitor • 21
“Ideally, having a system that can handle all of your
ticket sizes and constructs is important because what
you offer today may change tomorrow. Ensuring your
system is flexible to support changing business models
is important. You don’t want to change or invest heavily
when your business model changes — it’s better to have
the inherent flexibility from the beginning. It’s important
your system partner understands the industry and the
nuances of the industry.”— Michael Campbell, CEO, International Decision Systems

3. 22 • monitor • JUL/AUG 2016
to understand how technology can be harnessed to
drive innovation and improve the overall performance
of the operation. This could be in enhancing efficiency,
creating new channels to market, launching a revolu-
tionary financial product, being more responsive to
market needs or all of these things. The first step is to
create a goal and vision that can be shared among senior
leadership — a common understanding of why and how
a technology innovation can improve the business.”
“A common mistake companies make when
developing a technology strategy is expecting their
IT managers to fully understand the strategic vision
for the business,” says Van Slyke. “The technology
group has to interpret the requirements that emerge
as a result of the corporate and business level’s stra-
tegic vision, so it is critical for these groups to work
closely together.”
“A company needs to ensure that the system covers
all the basic processes, yet is extensible so they can
automate their ‘secret sauce,’” says Campbell. “They
need to anticipate their needs so their system meets
their requirements not only now but in the future.”
“Understand the difference between their current
state business process and desired future state busi-
ness process,” says Ghauri. “Vendors are usually
selected for 10 to 15 years and technologies assets
need to last as long. Vendors should be tested against
the current state business processes and future state
business processes. Vendors’ product roadmap should
also be reviewed. Then they will clearly see where the
capability gaps are within vendors and if the gaps lie
on the current or future state.
“Too often companies jump from one system or
application to another without fully realizing the
benefits of their technology,” says Van Slyke. “Without
a defined strategy, companies make poor buying deci-
sions, adopt ineffective tools and often experience a
high level of frustration. The businesses that excel typi-
cally establish a technology strategy that helps them
gain a competitive advantage through cost savings,
process improvements, faster time to market and
improved quality and service levels.”
“Once the core objectives are understood, a busi-
ness case can be developed that sets out the vision
in more detail, mapping the journey from the current
position to the desired future state,” says Raistrick.
“At this point, discussions with potential vendors and
implementation partners can start to turn the vision
into a roadmap for delivery.”
Choosing the Perfect Partner
When a company has mapped out its short- and
long-term vision and a well-defined strategy, and its
team understands the primary objectives, all that’s
missing is a software vendor. How can an equipment
finance company ensure that it chooses the right
technology partner?
“Until a few years ago, the technology advan-
tage was not material, but it is today,” says Madhu
Natarajan, CEO of Odessa Technologies. “Having
a customer portal, a mobile app and being able to
provide real time decisions to vendors are all competi-
tive differentiators in a market where it is no longer
about just margins.”
“The right technology investment will not only
give a competitive edge, it also changes the rules and
nature of the business,” says Ghauri. “Uber, Tesla and
AirBnB are great examples of technology disruption. By
changing the rules, equipment finance companies will
see the same kind of disruption within their own space,
creating the kind of competitive edge that increases
business volume or reduces cost while saving time.”
Charting a Course
When an equipment finance company recognizes its
need to improve technology, how does it begin the
process? To be sure our readers don’t miss any impor-
tant phases of the plan, we asked the experts. What
are the first steps it should take before interviewing
potential vendors?
“Any company investing in technology should
strive to first establish a clear vision of its technology
strategy. Understanding its desired relationship to
technology will inform how its investment decisions
are made,” says Natarajan. “For example, is tech-
nology a business driver or is it simply a component
of its overall infrastructure that enables its operations?
An introspective understanding of what the company
wants out of technology is really the first step. Once
this is established, picking the right vendor becomes
a lot easier.”
“Improving technology is not a valid goal without
a business context,” says Raistrick. “Businesses need
“The right technology investment will not only
give a competitive edge, it also changes the rules
and nature of the business. Uber, Tesla and AirBnB
are great examples of technology disruption. By
changing the rules, equipment finance companies
will see the same kind of disruption within their
own space, creating the kind of competitive edge
that increases business volume or reduces cost
while saving time.”
— Farooq Ghauri, COO, NetSol Technologies

4. JUL/AUG 2016 • monitor • 23
Four or five vendors can then be taken forward to the
Request for Proposal (RFP) stage. An effective RFP
usually incorporates more rigorous questioning on
functional and technical fit, ease of integration and
vendor suitability. Two or three vendors can then be
brought through to the workshops stage. Workshops
allow you to verify the product’s capability, test the
vendor’s knowledge and equip you to make your final
decision. Only the most important processes and
products, the key pain points and biggest aspirations
should be covered. Subsequently, one or two vendors
can be taken through due diligence and a final selec-
tion can be made.”
Evaluating Specific Needs
Equipment finance companies come in many sizes
and types. How would the technology needs of a large
bank, a small independent company, a large indepen-
dent or a captive differ?
“Independent lessors often have numerous external
partners they need to support, as they are either
working with investment capital or they’re relying on
multiple bank funders,” says Van Slyke. “Captives often
work with large dealer networks and need to support a
remote sales staff. Bank-owned lessors often times are
supporting customers with major accounts, large lines
of credit and multiple financial relationships.”
“The origination, funding and servicing needs of
any leasing company are what fundamentally drive its
business requirements,” says Natarajan. “Being bank-
owned, an independent or a captive certainly impacts
these requirements. Regardless of ownership structure,
“It’s helpful if your top performers — from both
business and technology functions — are involved in
the selection process,” says Raistrick. “They should
build out the high-level vision into a more detailed
set of requirements, defining products and business
processes in detail, then conducting research on poten-
tial vendors. Each firm to be considered should be an
authentic, legitimate outfit and, importantly, have a
strong delivery record in the asset finance arena.”
“Companies should look at the types of deals that
the vendor has closed in the last three to five years,”
says Natarajan. “The profile of companies that have
selected the vendor should provide them with a good
sense of the vendor’s trajectory. Companies should
also look at the size of the vendor. Software vendors
in our business have to be able to do three things
simultaneously: keep existing customers happy, win
new customers so that they can continue to grow their
user community and keep their product vibrant and
invest in their technology to continuously improve it.
Not a lot of companies can manage to accomplish all
three of these things. Red flags should go up for any
vendor that lacks any one of these three key funda-
mental attributes. Basic due diligence is all it takes to
establish where a vendor stands.”
“Evaluate the company history,” says Ghauri.
“Evaluate why they have lost their last three customers.
Have a detailed look at the vendor’s financials. Use
existing live contracts to run through a proof of concept
of the product and functionality. Trouble areas will be
visible if these areas are probed in detail.”
“Does the solution meet your company’s needs
today and in the future?” asks Campbell. “What level
of comfort do you have around the implementation and
the supplier’s ability to enable your success? Once live,
how are you being supported? Essentially, how is your
investment being protected? Once you are comfortable
with the answers to these questions, you must decide
how comfortable you are with your technology compa-
ny’s financial viability. Is the technology partner a safe
choice or do they introduce risk to your business?”
“A technology provider must be more than just
great products and services,” says Van Slyke. “They
must understand your business, your growth objec-
tives and your operational challenges in order to truly
be a partner. This is achieved by partnering with an
organization that employs great people with industry
knowledge, technology knowledge and a commitment
to finding innovative solutions to difficult problems
ensuring your future success. In the end, you are part-
nering with an organization of people, so one of the
most important things you can do is understand the
culture of the organization.”
“Once you have a shortlist, those on it should be
comfortable dealing with a Request for Information
(RFI),” says Raistrick. “This exercise is about weeding
out the weaker parties that aren’t worth your time.
“Companies should look at the types of deals
that the vendor has closed in the last three to five
years. The profile of companies that have selected
the vendor should provide them with a good sense
of the vendor’s trajectory. Companies should also
look at the size of the vendor. Software vendors
in our business have to be able to do three things
simultaneously: keep existing customers happy, win
new customers so that they can continue to grow
their user community and keep their product vibrant
and invest in their technology to continuously improve it. Not a lot of
companies can manage to accomplish all three of these things.”
— Madhu Natarajan, CEO, Odessa Technologies

5. 24 • monitor • JUL/AUG 2016
differ, but the flexibility required is the same by the
different type of companies. The need is for a highly
configurable and stable base product.”
“In addition to being able to support the different
types of companies, equipment finance technology
needs to also support the different ticket sizes,” says
Van Slyke. “For example, micro and small-ticket size
companies are usually looking for low-touch and high
automation from their system. These lessors require
streamlined processes like automated credit scoring,
lease documentation creation and delivery, and
eSignature capabilities. They also require automated
payment processing such as ACH and PAP.
“For larger-ticket lessors, their technology needs
are more centered on supporting complex deals with
varying degrees of asset management requirements,”
says Van Slyke. “These lessors need additional func-
tionality, such as managing the vendor invoices,
tracking progress payments, calculating and collecting
interim billings and managing inventories.”
“Ideally, having a system that can handle all of
your ticket sizes and constructs is important because
what you offer today may change tomorrow,” says
Campbell. “Ensuring your system is flexible to support
changing business models is important. You don’t
want to change or invest heavily when your business
model changes — it’s better to have the inherent flex-
ibility from the beginning. It’s important your system
partner understands the industry and the nuances of
the industry. Smaller customers may need hosting or
servicing partners or rely more heavily on the vendor.
Extensibility, security and compliance needs must be
met regardless.”
Keeping Asset Classes Top of Mind
Many equipment finance companies deal with certain
types of asset classes. How do technology needs differ
for aircraft, rail, materials handling, truck, construc-
tion, manufacturing, agricultural or marine assets?
Should companies consider their primary asset classes
when making decisions about software?
“Yes, absolutely,” says Raistrick. “Companies
should ask potential software vendors to process
realistic scenarios using realistic business data, and
especially asset information, to prove that the system
can meet the brief. This is not just about being able
to capture asset details, although that is important,
but it’s also about the business processes that vary
hugely by asset class. A system that is able to process
a single vehicle per contract may run into difficulties
when confronted with a fleet of 500 trucks or several
thousand IT assets.”
“As the asset servicing and handling is different,
so is the functionality that manages it,” says Ghauri.
“Aircraft financing may require syndication, and
equipment finance companies that work in high
risk credit will require weekly billing and invoicing.
the type of assets leased, their ticket sizes, the lines of
business catered to (captives often diversify exposure
by going outside their parent), the relationship they
may have with their customer (whether this is the end
lessee or vendor) each company’s business needs are
unique. Any technology that purports to cater to this
entire spectrum inevitably needs to be flexible without
compromising on functional comprehensiveness.”
“Regardless of size, some of the core requirements
are standard,” says Raistrick. “These include security,
stability, a strong future, good core functionality, low
cost of ownership (relative to scale), strong vendor
support and a successful delivery record. These factors
are equally as important to the manager of a smaller
operation as they are to the CEO of a large multinational.
“There are some additional considerations that
arise with scale,” continues Raistrick. “For very large
portfolios, performance and stability are hugely impor-
tant but harder to achieve. Large-scale operations
often rely on a higher degree of automation in customer
service to drive efficiency gains, whereas small inde-
pendents may prefer a bespoke, personal connection
with their customers. Due to their broader scale and
product offerings of larger banks and captives, there
will often be a higher degree of integration (connec-
tions to many existing systems) required. Captives
will frequently require integrations with their parent
company, and typically have differing contract origina-
tions needs.”
“Different sizes and types of companies follow
different business and compliances rules,” says
Ghauri. “Processes are also usually different and affect
most, if not all, business areas. Vendors may specialize
in different asset types or market profiles. Needs may
“A technology investment should persist in the long
term. A good software vendor will deliver regular
releases that bring the best of new technology without
a complete reinstall. Regular updates can then become
somewhat routine, while ensuring that software
continues to evolve and enable business innovation.
Long-term viability and commitment from a vendor
to continual investment in the software product are
important selection criteria when deciding which
vendor should become your technology partner.”
— Richard Raistrick, Director of Operations, North America, CHP Consulting

6. JUL/AUG 2016 • monitor • 25
company is planning an upgrade or just implementing
new software, it should initially focus on creating a
project scope before entering the planning phase and
assigning a project manager. “Focusing on these three
key areas before you implement new software will
dramatically increase the success of your endeavors
and ensure a stable and seamless transition,” he says.
Natarajan says his company’s software is designed
to keep the technology and the business separated.
“The technology merely exists to drive or enable
functionality,” he says. “This philosophy has allowed
us to look at technology as being independent of the
business. Users can continuously upgrade their tech-
nology without disrupting their business (or function-
ality). Our system is able to stay current and on top
of all the latest that technology has to offer without
undergoing painful upgrades. Contrast this with legacy
systems where the technology and functionality are
closely knit. This explains why most of our industry
is sitting on technology that is more than 25 years old!
It is painful to upgrade. This is downright shameful in
2016, when, outside of work, we use our smart phones
and tablets to navigate our lives.”
“A technology investment should persist in the long
term,” says Raistrick. “A good software vendor will
deliver regular releases that bring the best of new tech-
nology without a complete reinstall. Regular updates
can then become somewhat routine, while ensuring
that software continues to evolve and enable business
innovation. Long-term viability and commitment from a
vendor to continual investment in the software product
are important selection criteria when deciding which
vendor should become your technology partner.” m
RITA E. GARWOOD is managing editor of Monitor and ABF
Journal.
Off-lease handling also varies from company to
company and asset type to asset type. The agricul-
ture equipment finance companies will want seasonal
billing and invoicing.”
“The software should be flexible to handle a
variety of asset classes today and in the future. The
system shouldn’t be the deterrent for expanding your
portfolio; it should enable your ability to grow,” says
Campbell, adding that a system should accommodate
pricing models, residual calculations and depreciation
defaults/calculations.
“Understanding how leasing systems are archi-
tected hits at the heart of asset management,” says
Natarajan. “Most legacy systems are contract-based.
This poses fundamental challenges when it comes to
anything asset-based. They limit a leasing company’s
ability to be creative and entrepreneurial in how it
caters to market demands. Charging for the number of
hours an asset has been used for, instead of just a flat
monthly fee for its usage, is an important way to look
at asset utility. But these are the very paradigm shifts
that are happening today. Managing the lifecycle of
the asset and being able to account for its profitability
throughout its life as it moves from contract to contract
and is ultimately refurbished and sold is key.”
“The important thing is that the technology solu-
tion is able to manage the entire lifecycle of an asset,
from the P.O. process all the way through to the
disposal of the asset,” says Van Slyke. “This includes
tracking the asset’s specific attributes, the full history
while in inventory, the locations and associated taxes
and the depreciation.”
Planning Ahead
Technology has been developing at a rapid pace. If an
equipment finance company were to implement new
software today, how soon would it need to plan for
an upgrade?
“Equipment finance companies should be looking
for an upgrade after 10 to 15 years,” says Ghauri. “The
vendor and system must be flexible enough to handle
short-term business changes and impacts. Product
road maps should be reviewed and mutually modified
to be in line with the functional need of the equipment
finance company. Transparency of vendor’s product
and operation will ensure the technology assets last
for the required duration.”
Campbell says the need to upgrade is a function
of changes in the industry, changes in middle ware,
technology advances and surrounds. “Your business
should have a plan and foresight around this, aiming
at every 18 to 24 months.”
Van Slyke says the timing of upgrade will be
different depending on the company and the soft-
ware. However, what is consistent for all companies
looking to implement new software is the process that
a company should go through. He says that whether a
“A common mistake companies make when
developing a technology strategy is expecting their IT
managers to fully understand the strategic vision for
the business. The technology group has to interpret the
requirements that emerge as a result of the corporate
and business level’s strategic vision, so it is critical for
these groups to work closely together.”
— Jeff Van Slyke, President, LeaseTeam
a