Lending and leasing top trends 2025

Industry Investment Rating - The report highlights a strong focus on digital transformation and sustainability, indicating a positive outlook for industries adopting these trends [2][5][11] Core Report Viewpoints - The report emphasizes the shift towards Equipment-as-a-Service (EaaS) and embedded finance as key drivers of industry transformation [2][5] - Digital platforms and B2C expansion are identified as critical for scalable growth and enhanced customer engagement [7][106] - Green asset financing and sustainability are reshaping the investment landscape, with a focus on eco-friendly assets and regulatory compliance [11][12] Trend Summaries Equipment-as-a-Service (EaaS) - EaaS is driven by digitization and demand for customized solutions, offering operational efficiency and customer value through equipment, digital tools, services, and OEM know-how [2] - The auto finance industry has seen early adoption of servitization, with mobility-as-a-service and connected cars becoming popular offerings [2] - EaaS requires business transformation, including better asset management, agile billing, and technological agility [2] Embedded Finance - Embedded finance integrates financial services seamlessly into the purchase process, enhancing convenience and accessibility for customers [5] - The rise of digital platforms and APIs has accelerated the adoption of embedded finance, particularly in equipment leasing [5] - Companies like HP and Lenovo are integrating leasing options directly into their e-commerce platforms, offering flexible financing plans [68] B2C Channel Expansion - Advances in digital technology enable leasing companies to create robust online platforms, expanding their reach to a broader audience [7] - Embedded finance allows for seamless integration of financial services into digital interfaces, improving customer experience [7] - Traditional B2B-focused leasing companies are now investing in digital infrastructure to scale B2C operations profitably [7] Green Asset Financing - Green asset financing is driven by rising environmental awareness and customer demand for sustainable investments [11] - Investments in electric vehicles, solar panels, and energy-efficient machinery are contributing to a greener economy [11] - Regulatory incentives, such as tax credits and green bonds, make green financing cost-effective for companies [11] Digital Transformation - Data-driven decision-making and AI are central to digital transformation, enabling better customer engagement and risk management [84] - Companies like John Deere and Hitachi are leveraging AI and IoT for predictive maintenance and flexible consumption models [85] - Simplifying and standardizing processes across geographies is essential for scalable AI and ML implementations [87] Balancing Automation with Human Expertise - Automation through AI and ML is effective for repetitive tasks, while human expertise remains crucial for complex decision-making [131] - Combining automation with human oversight enhances efficiency without losing the personal touch in customer interactions [131] - Companies like Caterpillar and Rolls-Royce are using AI to monitor asset performance and optimize maintenance schedules [88] Regulatory Landscape - The EU and US have differing regulatory environments, with the EU leading in cohesive sustainability frameworks and the US facing a fragmented approach [98] - Financial institutions must invest in systems to meet rising compliance costs from ESG, risk management, and data protection regulations [98] - Lenders are prioritizing financing for low-emission, sustainable assets to align with regulatory requirements and capitalize on green finance opportunities [98]