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In the Lab

Due to powerful connectivity and digital technologies, finance and leasing companies across the world have developed new business models. The global asset finance and leasing industry is evolving with digital enablement solutions due to technological evolution including artificial intelligence and blockchain.

Artificial Intelligence

The phenomenon of artificial intelligence has also revolutionized the asset finance and leasing sector across the globe. Artificial Intelligence, or AI, involves the creation of intelligent machines that work and react like human beings.

Automatic credit scoring and processing is one of the most advanced uses of AI in the global asset finance and leasing industry. For origination of loans and leases, AI is already finding its role as a sales adviser, assisting customers with decisions through the automatic analysis of supporting documents. The finance industry is adopting AI for speed, accuracy and efficiency. For the industry, it enables automating routine transactions, enhancing processes from customer journey optimization, to fraud reduction, less human intervention, voice assistance, churn management, money laundering detection and targeted advertising.

Blockchain

Successful transactions in the finance and leasing sector need to be quick, precise and a consensus needs to be reached by all parties participating in the transaction. Blockchain enables executing these transaction in a way that optimizes ecosystems and significantly reduces risk. Essentially, it is a decentralized public ledger system that uses a peer-network to record transactions.

In the finance and leasing industry, Blockchain can be seen as a state-of-the-art ledger that tracks the movement of assets. It is likely to transform the way asset lifecycles are tracked and will increase transparency at every movement of an asset. The purchase and selling of assets also becomes more efficient, eliminating the lengthy processes involved in transferring assets. By the use of a single ledger, discrepancies in records are eliminated, time is saved and most significantly, costs are lowered by cutting out intermediaries. To date, there has not been a single flaw in any of the blockchain systems in use and it is being referred to as ‘fraud proof’.