EQUIPMENT LEASING AND FINANCE ASSOCIATION What is REALLY Driving Digital Transformation EQUIPMENT LEASING AND FINANCE ASSOCIATION Panel Members Moderator: John Deane CEO The Alta Group [email protected] Presenters: Jim Ambrose Jeff Berg President, Equipment Finance EVP - North America GE Capital Healthcare Equipment Finance DLL [email protected] [email protected] Tiger Tyagarajan President & CEO Genpact [email protected] EQUIPMENT LEASING AND FINANCE ASSOCIATION Digitization: A definition “Digitization is the use of digital technologies to change a business model and provide new revenue and value- producing opportunities; it is the process of moving to a digital business.” Source: EQUIPMENT LEASING AND FINANCE ASSOCIATION Digitization of Marketing Timeline EQUIPMENT LEASING AND FINANCE ASSOCIATION Digitization Drivers: The 4 C’s Customers Costs Competition Compliance • Increased • Reduce cost to serve • New entrants • Know your expectations • Deliver process • New business customer • Less loyalty improvements models • Anti-money • Digital lifestyle • Drive agility and • Technology laundering flexibility players … • Anti-fraud Apple • Reduce headcount Google • Risk management and OpEx LinkedIn • Capital adequacy Facebook EQUIPMENT LEASING AND FINANCE ASSOCIATION Why Worry? Because if you don’t digitize … then someone else will EQUIPMENT LEASING AND FINANCE ASSOCIATION DLL Express Finance mobile application Financing at your fingertips Jeffrey Berg EVP - North America – DLL Financial Solutions Partner EQUIPMENT LEASING AND FINANCE ASSOCIATION 8 EQUIPMENT LEASING AND FINANCE ASSOCIATION 9 EQUIPMENT LEASING AND FINANCE ASSOCIATION Why mobile? Growing market need for transactional speed and efficiency Leverage digital technology to untether Vendor sales force from the desk Allowing for end-user finance process to occur at Point of Sale or any other remote location 10 EQUIPMENT LEASING AND FINANCE ASSOCIATION Mobile strategic goals • Improve partners’ salesforce effectiveness • Deliver In-field, real-time, end-to-end financing • Enhance our partners’ brands 11 EQUIPMENT LEASING AND FINANCE ASSOCIATION 12 EQUIPMENT LEASING AND FINANCE ASSOCIATION Digital Disruption in the Asset Finance Industry: How Do We Get the Biggest Bang for a Buck? ‘Tiger’ Tyagarajan , President & CEO, Genpact EQUIPMENT LEASING AND FINANCE ASSOCIATION Businesses today have reached an inflection point Reinvent Inflection Point Relevance Stay the Gap Performance Course Time EQUIPMENT LEASING AND FINANCE ASSOCIATION ...and we are seeing a paradigm shift in client expectations “Incremental CIO CFO CRO CMO Productivity is passe!” “Leverage new innovative and agile technologies” “Customize my commercial models” “Take control of my “Predict the end-to-end business” future for me!” EQUIPMENT LEASING AND FINANCE ASSOCIATION Large enterprises struggle with digital innovation because of… inability to experiment quickly 48% change management 41% 21% legacy systems 39% Of companies truly risk aversion 38% reap the transformative organizational silos 38% value of digital success rate among those but only… with good back/middle office 17% 53% alignment to customer needs are in that category Source: Harvard Business Review / Genpact research, sample of 680 executives, June 2016 EQUIPMENT LEASING AND FINANCE ASSOCIATION End to end process is the biggest opportunity! Challenges Front Office Middle Office Back Office Now enabled with digital front end Hamstrung by disparate data sources Fragmented and reliant on old systems EQUIPMENT LEASING AND FINANCE ASSOCIATION Reimagining a customer’s commercial lending journey Completion of settlement Final approval communicated to client New opportunity shared with client Documents shared with Funds received and potential client transferred Valuation and sent to clients on the Communicate pricing received for signature conditional approval same day to client Financial Spreading output Loan account Manual received Waiting on opened completion of first time right Customer not Incomplete Documents/ application form loan sending Updating Financials collected information in contracts/ documents from client and scanned documents CRM system for processing 22 Days EQUIPMENT LEASING AND FINANCE ASSOCIATION Reimagining a customer’s commercial lending journey Application Financial eCredit Originate Complete Develop Credit Prepare Create Loan Perform Entry Analysis & Rating Loan Valuation Pricing Approval Docs File No. Draw down (ECL form) data entry System File quality check & Pre-approval process File no. generated RM meets client documents stored used as identifier Credit Mgr. reviews & suggests line of credit Decision RM schedules communicated meeting Custom App + RA* for RA + NLP/NLG + RA+ Machine Dynamic workflow + Application Entry + Machine Learning Learning RA Dynamic workflow 24 Hours EQUIPMENT LEASING AND FINANCE ASSOCIATION Dramatic disruptive value creation Cycle time for approval Interest rate spread up reduced from 22 days to 1 from Costs down by 40% day 250bps to 280bps First time right customer set Losses reduce from up goes from 0.7% to 0.4% of assets 50% to 80% EQUIPMENT LEASING AND FINANCE ASSOCIATION As leaders, we will all have to balance a two-speed world Fail Fast Defect Free Minimum Viable Product Fully ready product Forward Predictive Insight Rear View Insight Ability to Learn Ability to forget Ability to Change V S Ability to stand firm Ability to Excite Ability to Stabilize Take Risk Achieve Balance Break Tradition Enforce Policies EQUIPMENT LEASING AND FINANCE ASSOCIATION Behaviors which would be most critical . Collaborate, Collaborate & Collaborate . Willingness to change with new evidence . Don’t get frustrated by change in direction…“Get Speed” . Play Soccer Vs 100 meters dash . Build the right team – you are as good as your team . Prototype...Test...Fail...Learn...Repeat . Curiosity Quotient (CQ) is as important as IQ and EQ EQUIPMENT LEASING AND FINANCE ASSOCIATION Digital Disruption in Asset Financing Jim Ambrose, President GE Capital, Healthcare Equipment Finance © 2017 General Electric Company. All rights reserved. EQUIPMENT LEASING AND FINANCE ASSOCIATION The Industrial Internet will drive efficiency and boost productivity across many industries © 2017 General Electric Company. All rights reserved. EQUIPMENT LEASING AND FINANCE ASSOCIATION The GE Health Cloud is our customized solution for the healthcare industry Predix: Cloud Infrastructure for High Performance Operations Any descriptions of future functionality reflect current product direction, are for informational purposes only and do not constitute a commitment to provide specific functionality. Timing and availability are subject to change and applicable regulatory approvals. © 2017 General Electric Company. All rights reserved. EQUIPMENT LEASING AND FINANCE ASSOCIATION GE Health Cloud applications Any descriptions of future functionality reflect current product direction, are for informational purposes only and do not constitute a commitment to provide specific functionality. Timing and availability are subject to change and applicable regulatory approvals. © 2017 General Electric Company. All rights reserved. EQUIPMENT LEASING AND FINANCE ASSOCIATION Real time asset optimization analytics • What assets do we have in our fleet? • How is each asset performing? • Do we have the right mix of assets? • Are they optimally deployed? • Are we maximizing Conceptual Dashboard labor productivity? Any descriptions of future functionality reflect current product direction, are for informational purposes only and do not constitute a commitment to provide specific functionality. © 2017 General Electric Company. All rights reserved. EQUIPMENT LEASING AND FINANCE ASSOCIATION Asset benchmarking capabilities 1 Regional Competitors How am I performing relative to my regional competitors? 1 2 3 2 National Peer Group How am I performing relative to other national systems like me? 3 Multi-Vendor Comparisons How are certain vendor assets performing relative to others? Conceptual Dashboard Any descriptions of future functionality reflect current product direction, are for informational purposes only and do not constitute a commitment to provide specific functionality. © 2017 General Electric Company. All rights reserved. EQUIPMENT LEASING AND FINANCE ASSOCIATION Thank you for participating.