Asset finance servicing, sorted

The asset finance market is at a tipping point. Borrowers and investors expect faster and more streamlined management of asset finance servicing. And business models for core asset finance servicing are rapidly evolving. Some firms have already tested and integrated new technologies. But most need to upgrade their outdated operating models with state-of-the-art technology ecosystems. The challenge? This can be expensive and hard to do at scale.

The solution? Seamless, end-to-end servicing through Genpact's cloud-based asset finance servicing platform, which uses advanced technologies such as generative artificial intelligence (gen AI).

Challenge

Modernizing is tricky and expensive

New, digital-native entrants to the asset financing market are nibbling at what used to be a traditionally stable business. These nimble, cost-effective challengers tend to offer more diversity in products, simpler models of financing, and enhanced customer care. For traditional asset financiers, the kind of change required to stay relevant can feel like a tall order.

To compete, asset financers must address a range of issues, such as:

• Lack of enterprise agility
• Inefficiencies in business models and workflows
• Highly manual management of loan servicing
• Touch-heavy processes

Solution

Complete, end-to-end servicing, sorted

Genpact's asset finance-as-a-service solution creates a strategic, value-based partnership between lenders, investors, and funding partners. Using our advanced technology solutions embedded with generative AI, we optimize servicing and collections and elevate customer experience.

Traditional asset financers trust Genpact to:

• Onboard $250–$300 million in loans per month
• Send more than half a million invoices to borrowers every month
• Process $25 million in payments in the same timeframe
• Complete more than half a million state and county uniform commercial code filings each year

This means lenders and investors can focus on growth, credit, and expansion to new markets and product lines.

The foundation of our solution consists of:

1. A servicing platform powered by Genpact Cora that handles everything from loan onboarding, invoicing, accounting, and payment processing to collections and customer service
2. AI, gen AI, and machine learning models to identify the most effective collection strategies, pinpoint quality performance opportunities, and suggest next best actions for agents
3. A scalable, Amazon Web Services (AWS)-hosted technology ecosystem that allows asset financiers to flex up and down depending on the volume of assets financed while paying on a per-contract basis
4. Automated processes for enhanced efficiency with AWS-managed Apache Airflow acting as an orchestration layer for data processing and program execution
5. Genpact's Data-Tech-AI services, which bring in automation and data accelerators for lease abstraction, covenant monitoring, credit, and financial narrative generation
6. A cloud-based global telephony system enhanced by Genpact's AI Coach and Virtual Agent Assist, powered by gen AI
7. Information security and compliance protected by our ISO 22301-certified core protection plan and a six-step security and privacy framework

Working across all stakeholders in the asset finance ecosystem, the solution monitors and manages:

• Customer relationships throughout the complete loan or lease life cycle
• The investor's or funder's portfolio to maintain a healthy credit performance
• The lender's ecosystem, end-to-end, allowing them to focus on sales and strategy

Impact

Immediate portfolio growth

Genpact's solution has an immediate and significant impact. First, clients avoid the burden of huge, fixed costs from making large initial outlays for in-house technology. Second, they can rest easy knowing that Genpact's share of revenue is linked to the volume of assets financed and therefore tethered to their growth, with no surprise charges in store.

The proof is in the pudding:

• For a US Banking division of a global financial services group that wanted to launch an equipment financing division, we set up an end-to-end lease processing solution from scratch in just under six months. This included bespoke, pay-as-you-grow lease administration services on a Genpact-hosted and maintained servicing platform
• For a rapidly growing solar energy financing company with a need to scale quickly, we set up its lending system onto the cloud and provided it with a multilocation operating model and servicing for its portfolio from multiple Genpact global delivery centers – all within four months

For companies looking to start lending or improve their operations, Genpact's asset finance-as-a-service solution offers an immediate, intelligent, scalable, and cost-effective response.