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Lending and Leasing
Trends for 2017
2Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Firms are consolidating th...
3Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Firms are leveraging new t...
4Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Lending firms are transfor...
5Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Firms are developing direc...
6Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are collaborating wi...
7Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Regulations are picking up...
8Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Expectations of millennial...
9Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Increase in digitization e...
10Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Streamlining of lending p...
11Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Open marketplaces are gai...
About Capgemini
Now with 180,000 people in over 40 countries, Capgemini is one
of the world's foremost providers of consul...
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Top Ten Trends in Lending and Leasing 2017

Traditional lending and leasing organizations are waking up to the fact that they need to transform their operations in order to remain preferred lenders. While large corporations are still heavily dependent on traditional lending, small and medium businesses and retail customers are finding it easier to deal with FinTechs/alternative lenders. . More automation, machine learning, data analytics, smart contracts, and enhanced cybersecurity are not only expected to increase operational efficiency but also result in lower costs and greater customer experience. This document aims to understand and analyze the trends in the lending and leasing industry that are expected to drive the dynamics of the lending and leasing ecosystem in the near future.

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Top Ten Trends in Lending and Leasing 2017

  1. 1. Lending and Leasing Trends for 2017
  2. 2. 2Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Firms are consolidating their lending channel platforms to streamline operations Information in Real- Time Cross-selling Products Decrease operational costs Seamless Connected Experience Source: Capgemini Financial Services Analysis, 2016 Enhance Operational Efficiency
  3. 3. 3Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Firms are leveraging new technologies to optimize their credit risk analysis Optimize Pricing Personalized Products Decrease Processing Time Dynamic Credit Management Source: Capgemini Financial Services Analysis, 2016
  4. 4. 4Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Lending firms are transforming their operations for better efficiency Business Process Improvement Effective Monitoring Automation 79% Mortgage lenders Agree/Somewhat Agree that industry is innovating to drive operational efficiency 2% Businesses operational expenses for online lenders of outstanding loans compared to 5-7% for traditional lenders Source: Capgemini Financial Services Analysis, 2016; Mortgage Lender Sentiment Survey, Fannie Mae, Published July 2016; The path to profitable growth in retail lending, Nucleus Software, Accessed on Nov 2016 at http://blog.nucleussoftware.com/uncategorized/the-path-to-profitable-growth-in-retail-lending/
  5. 5. 5Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Firms are developing direct lending models in order to deliver positive results Source: Capgemini Financial Services Analysis, 2016; Preqin Global Private Debt Report, 2016; Asset managers pour billions into direct lending”, Financial Times, accessed on November 2016 at https://www.ft.com/content/23bc5496-a026-11e5-beba-5e33e2b79e46 Diversifying Money Supply Increased Supply of Capital Predictable Yield $18.8 bn In 2015, Europe focused direct lending funds raised $18.8bn in aggregate capital, a 48% increase from $12.7bn in 2014 $41.0 bn In Dec 2015, European- based fund managers had $41bn ready to deploy in direct lending deals, twice as much as in 2012
  6. 6. 6Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Banks are collaborating with FinTech firms to nurture innovation and meet customer expectations Diversify Portfolio Innovation Reaching Unbanked and Under-Banked Segments Higher Return on Equity $19.0 bn FinTech investments have increased from $1.8 bn in 2010 to $19 bn in 2015 Source: Capgemini Financial Services Analysis, 2016; Digital Disruption, How FinTech is Forcing Banking to a Tipping Point, CITI, Mar 2016
  7. 7. 7Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Regulations are picking up pace in the online marketplace lending Higher Rates Charged by Online Lenders Remoteness and Anonymity of Online Transactions Unconventional Ways to Assess Creditworthiness of Borrowers Variety of Assortment of Credit Products Adds on Complexity Source: Capgemini Financial Services Analysis, 2016
  8. 8. 8Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Expectations of millennials are pushing forward digital transformation agenda Collaborative Projects R3CEV Hyperledger Project Ripple (Payments) 91% of millennials use smart phones to access their account 92% of millennials would make a banking choice based on digital services Source: Capgemini Financial Services Analysis, 2016; Millennials’ are driving the digital transformation of the banking sector, BBVA, July 2016; Here’s where mortgage companies should invest in tech to reach Millennials, Mortgage coach, June 2016, https://mortgagecoach.com/heres-where-mortgage-companies-should-invest-in-tech-to-reach-millennials/
  9. 9. 9Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Increase in digitization enhances cyber security concerns Source: Capgemini Financial Services Analysis, 2016; Cyber Security Market - Global Forecast to 2021, Markets and Markets, 2016; Data breach statistics H12016, Gemalto, 2016; Cyber security: making banking safer, The Banker, Jan 2016; Cybersecurity Information Sharing Act of 2015, https://www.congress.gov/bill/114th-congress/senate-bill/754 Preventive Regulations New Authentication Methods Partnership with Specialized Vendors Specific Roles such as Chief Information Security Officer $202 bn Estimated size of cyber security market in 2021
  10. 10. 10Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Streamlining of lending processes by leveraging smart contract, blockchain, and IOT Source: Capgemini Financial Services Analysis, 2016 Faster Contract Execution Lower Transaction Cost Transparency Better Compliance Better Collateral Management
  11. 11. 11Copyright © Capgemini 2016. All Rights Reserved Presentation Title | Date | Financial Services Open marketplaces are gaining prominence Source: Capgemini Financial Services Analysis, 2016 Faster Access to Credit Increased Access to Credit Emergence of New Business Models Reduction in Cost of Operations and Lending
  12. 12. About Capgemini Now with 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. Rightshore® is a trademark belonging to Capgemini The information contained in this presentation is proprietary. © 2015 Capgemini. All rights reserved. www.capgemini.com

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