In 2017, Alfa’s first Digital Directions report explored leading industry opinion on how digitalisation was changing asset finance. In this follow-up, they look more closely at where companies have reached in their digital journey.

Digital Directions 2 draws on research and insights from across the retail, fleet and equipment finance industry. Download the report or scroll down to find more.

The asset finance sector, in common with the industries it serves, is experiencing a period of rapid and transformative change, driven by advancements in technology which have led to the emergence of the sharing economy and a new focus on usage rather than ownership.

The aim of Digital Directions 2 is to pinpoint the optimal strategy for those companies reluctant to embrace new ways of working, and to analyse how organisations are overcoming the challenges of building an infrastructure, getting the right skills in place, and exploiting data.

You’ll see how each segment is responding to digitalisation, how they differ and where they’re the same; ultimately understanding where we are collectively on the digital journey, and what we need to do to stick to the path.

Insights

What skills are currently lacking?

Five actions
How can your organisation ensure it stays ahead of the curve? Five actions to progress your digital journey:

  1. Get ready. While now might not be the time for change in your organisation, the right time will come. Sooner or later your competitors will be using valuable, targeted data with AI and other emerging tech to tune the proposition and reach different markets. Don’t be left behind.
  2. Be considered. The opportunity is significant but time and resources are limited, so a strategic approach is vital. When assessing your operations and processes, avoid trying to overachieve. Identify what changes are right for your business, then execute them with precision. Don’t fall into the trap of doing many things poorly.
  3. Quantify your data. Historically, our industry hasn’t collected or used data well. Before you look to step up the use of data in your organisation, consider whether the data sources you use are the right ones, that they have integrity, and whether they are a comprehensive set. Fill the gaps and standardise the quality before moving forward.
  4. Work with the specialists. Not every fintech, key influencer or industry group will revolutionise your operation, but the right ones for you will unlock rich opportunities. Identify who has the expertise to take you forward in the areas most important to you, and collaborate with them on a joined strategy.
  5. Recruit digital leaders. It’s straightforward to find young technical talent, but expertise is lacking at the upper levels. Top-level appreciation of digitalisation and its potential will help sharpen your strategy and shift your culture. Put people with vision and the appropriate skills in your leadership roles, then allow them to foster innovation from the ground up.