Benefits of an End-to-End System
Transparency. Efficiency. Security. Effectiveness. These are just a few of the words that describe the benefits of implementing a lease/loan management solution that manages the entire life-cycle of an equipment finance deal. In a growing and evolving industry, these are not just buzzwords. They stand for the components of your business that you need to focus on to be successful.
Transparency. In today’s business world, customers expect a good customer experience, and because the life-cycle of an equipment finance deal has many touch points, providing this level of service can be tricky. That’s where having visibility into your processes and transparency into your contracts and accounts can help.
A single system provides a comprehensive view into all attributes within an account and a contract, enabling any department, at any point of servicing a customer, to know exactly what has transpired. This includes tasks performed, tasks pending, ownership of the tasks, time-lines, completion dates, current status and miscellaneous notes. This is important for two reasons. First, it highlights any bottlenecks or consistent issues, making it easier to improve processes and add accountability for meeting service metrics. Secondly, it empowers whoever is talking with the customer to know their history and what their current status is. This transparency provides a fluid, efficient customer experience by eliminating the frustration of duplicate or siloed conversations, uninformed decisions, disjointed activities, and accessing multiple systems to provide service.
Efficiency. To provide exceptional service and grow your business, you need to maximize your operational efficiency. Implementing a single-system platform provides the structure to implement intelligent workflows from origination, including task lists, work queues email notifications, etc. It allows businesses to implement processes and functionality based on what the business needs are, without having to delineate between front-end and back-end processes. For example, with end-to-end documentation generation functionality, functionality is available to both the front-end and back-end processes that allow you to create late fee notifications, email them out and store them in the repository, all as one seamless process with visibility to all relevant parties. It also opens up other options, like the ability to pull a credit report on a customer at any point in the life-cycle.
Security. Security and compliance are topics that are on everyone’s mind. Having the flexibility of a complete single-system solution provides tremendous value when addressing this area. The benefits of single-system processing allow you to redefine technology from a processing solution to an information system that regulators can rely on. A single system makes it easier to implement policies around storing confidential data, including how it is updated and disposed of, and who has access to it. These bi-directional, fluid processes monitor critical data elements, track who and what changes are made, and send notifications to key people.
A complete system also gives you more control over the timing and quality of data being entered. Some of these features include user-defined fields, pick lists for standardization and data input requirements when critical data elements have to be input. One example of this is when a sales person is entering a lead, there might be little information required from a regulatory perspective. By the time the transaction needs to be booked, however, there are likely additional data elements that will be needed. By utilizing end-to-end system technology and workflow capabilities to define data processes and requirements, you eliminate the potential for having junk data entered into the system and ensure you have the data that is required at each stage of the process. Another significant advantage to implementing a complete solution is the ability to deploy this functionality to the entire organization. More than likely, critical data elements will span multiple functional areas, from quality assurance to accounting to treasury to credit. It’s helpful to set user-defined milestones that will prevent a deal from progressing before the required tasks are completed and provides visibility across the enterprise.
A complete system also provides a central document repository with secure read/write/modify access by document type that acts as a secure place to manage, store and access all the documents that pertain to an account or contract.
Effectiveness. Implementing a complete end-to-end system provides a single view of your business. This singular view provides the data needed to better understand a customer’s history, their lifetime value, risk, exposure, and even their propensity for future business.
A complete system also supports other process enhancements that allow you to be more effective in running your business.
- The ability to measure turns times and report on potential operational inefficiencies
- The ability to bill for miscellaneous origination items such as doc fees and security deposits in advance of a contract being booked
- The ability to set before booking and automatically sync up renewal schedules with contract changes, such as term extensions or changes to the final payment
- The ability to maintain multiple renewal schedules per contract (renewal schedules can be set at the asset level)
- Provides visibility to the assets associated to a contract throughout the entire contract lifecycle, along with the means of disposal
- Improves internal/external communication through the use of email notifications related to changes
- More effective risk management
- More targeted marketing efforts
Ultimately, these examples support more effective business processes, leading to better service levels and greater customer loyalty.
Transparency. Efficiency. Security. Effectiveness. Because every business is different, how they define the benefits an end-to-end system brings could be slightly different. One thing is consistent, though: equipment finance transactions are no longer linear, and, therefore, companies need to think about implementing an end-to-end system that provides an all-encompassing view of their business, with the efficiencies of single-system processing.
Once you understand the tremendous benefits that an end-to-end system can afford you, the next thing to think about is the implementation. Most companies want their system migration to happen behind the scenes, with little to no impact to their customers. To accomplish this, questions will have to be answered. For example, how will their data be migrated over to the new system? While most companies have their data dispersed between several systems, migration to an end-to-end system will require their data be moved into a single database. You’ll also need to define the process of transferring existing reports into a single, secure, comprehensive repository. Finally, you need to ensure your staff/users of the system are adequately trained on how to use the new system. This will prevent a temporary drop off in service. Each business case may have additional requirements, but usually, those items can be identified and planned for as part of the implementation project.