In the current financial environment, innovation in asset finance is crucial for staying competitive. A significant shift is occurring with the introduction of usage-based financing models in auto and equipment finance. These models replace fixed-cost ownership with a flexible "pay-as-you-use" approach, offering advantages like reduced upfront costs for consumers and steady income streams for providers. However, they also present challenges such as pricing complexity, risk management issues, and technological demands.
Despite mixed results from initial trials in both sectors, advancements in artificial intelligence (AI), the Internet of Things (IoT), and predictive analytics are enhancing the feasibility of these models.
An upcoming webinar will feature a panel of experts discussing how businesses can leverage usage-based models and modern technology to gain a competitive edge and drive growth. The speakers include Murad Baig from FIS, Amelia Bradley and Markus Collet from Corporate Value Associates, Johanson Sandrasagra from Microsoft, and Charles Yuen from FIS.