Why agility and versatility in finance software matter
By Thomas Nokin, CEO, Basikon
THE LEASING INDUSTRY HAS EVOLVED significantly over the past few decades. What was once a linear and straightforward method of asset financing has become increasingly complex due to market globalisation, the faster pace of business, and the growing involvement of diverse stakeholders.
The need for agility in business decision-making is at an all time high, as companies adapt to ever-shifting market conditions. Leasing plays a central role in this transformation by offering companies flexibility in how they manage their resources and capital expenditure.
“The future of leasing lies in the ability to adapt swiftly to a dynamic and increasingly complex marketplace. As industries evolve and new assets and regulations emerge, leasing solutions must be as versatile and agile as the needs they serve. At Basikon, we envision a world where technology drives this transformation – where platforms not only manage complexity but enable growth through innovation, seamless and future-proof integration, and real-time decision-making. The future is not just about keeping pace with change; it’s about leading it.” Thomas Nokin, CEO of Basikon
Leasing options have diversified to meet a range of needs. From operating leases to financing leases and lease-purchase agreements, companies today rely on various models to maintain operational flexibility.
The global leasing market has grown from US$1,685.5bn in 2023 to US$1,856.11bn in 2024 (at a compound annual growth rate (CAGR) of 10.1%) and continues to expand. It is expected to reach over US$2,738.03bn in 2028,1 driven largely by increasing demand for equipment leasing and growing interest in sustainability-focused financing models.
The continued expansion and complexity of leasing underline the importance of a financing platform that can adapt to this dynamic environment.
As businesses diversify, lease portfolios grow, and the regulatory landscape becomes more complex, the need for versatile, future-proof financing solutions has never been clearer.
The multifaceted nature of modern leasing. Modern leasing is shaped by several intersecting trends, and one of the most significant is the growing focus on sustainability.
The environmental impact of business operations is under increasing scrutiny, and companies are responding by seeking financing
solutions that align with their sustainability goals.
Deloitte published a report in 2024 that stated that 34% of lessees had green lease clauses in 2021 and 40% plan to sign one by 2025,2 reflecting the rising demand for financing solutions for electric vehicles (EVs), solar energy infrastructure, and energy-efficient equipment.
Simultaneously, the digital transformation of the industry is reshaping how leasing companies operate. As businesses increasingly
turn to digital tools for automation, data analytics, and customer engagement, leasing companies are under pressure to digitise their offerings.
AI, machine learning, and big data analytics are revolutionising leasing, enabling companies to predict asset depreciation, automate decision-making, and manage risk more effectively.
A notable shift is also occurring in the type of assets being leased. While traditional equipment such as vehicles, machinery, and IT infrastructure continues to dominate, newer assets like renewable energy systems, medical technology, and intellectual property are gaining traction.
To illustrate the scope of this shift, the renewable energy sector has seen a 30% increase in leasing volumes over the past year, while the global healthcare equipment leasing market size is estimated to grow by US$28.41bn between 2023 and 2028 (at a CAGR of 8.23%), 3 underscoring the growing diversity of assets being financed.
This diversity across industries requires financial tools that are both flexible and tailored to specific market needs. For example, leasing an EV fleet demands different contractual terms, maintenance schedules, and regulatory considerations compared to leasing industrial machinery.
Software platforms must therefore be agile enough to handle these distinctions while maintaining efficiency across all operations.
Challenges in traditional leasing and financing software.
Despite the exciting growth and evolution of the leasing sector, many companies are held back by outdated or inadequate technology.
Traditional leasing software, designed for a less dynamic era, struggles to keep pace with the industry’s rapid evolution.
These systems are often rigid, lacking the scalability to handle growing portfolios and the flexibility to support new types of assets or innovative business models.
A key limitation of legacy software lies in its inability to scale efficiently. For example, as leasing portfolios expand into the hundreds of thousands of contracts, many systems struggle to maintain performance, leading to slower processing times and operational bottlenecks.
Data from a 2022 Deloitte survey reveals that 64% of leasing companies cite scaling issues as a major hurdle4 especially when managing diverse asset classes across multiple jurisdictions.
The challenge does not stop there. Integration with other core business systems remains a significant pain point. Many leasing companies report difficulties in aligning their software with ERP, CRM, and financial systems. Why?
Implementing an ERP system, for example, often involves major process changes and recurring updates, such as data migration (data integration challenges account for 40% of project failures) 5, leading to inefficiencies and costly manual intervention. It also requires excellent knowledge of internal IT systems and cloud infrastructure.
Furthermore, regulatory compliance becomes increasingly complex as leasing companies expand globally. With each country presenting its own set of regulatory frameworks, traditional software solutions often lack the adaptability required to manage these variations.
Companies in the EU, for instance, face stricter compliance demands related to sustainability reporting and GDPR, while US based companies must navigate a different set of rules regarding asset depreciation and tax regulations.
Recent data shows that 72% of leasing executives are concerned about the ability of their current systems to adapt to changing regulatory environments.6 This challenge is compounded by the rapid acceleration in regulatory changes, with more than 300 new leasing-related regulations introduced globally in the past two years alone.7
For this reason, the need for digital transformation was identified in 2022 by a PwC survey as the top priority for 60% of C-level executives in the leasing industry,8 alongside regulatory compliance and data security concerns.
The result? A recent study indicated9 that companies stuck with inflexible software are struggling to maintain compliance, remain competitive, and meet growing customer expectations.
The advent for versatile and agile solutions.
In today’s multifaceted leasing environment, the need for a versatile and agile financing platform is more critical than ever.
Scalability, once considered a future goal, is now a necessity. Leasing companies must have platforms capable of handling diverse assets, different leasing structures, and varying regulatory requirements across global markets.
The best solutions are built with flexibility at their core–ultra-agile, low-code, and 100% API-based platforms that ensure seamless integration with existing systems while allowing for rapid innovation.
Agility in software is not just about keeping up with today’s demands; it’s about future-proofing operations. Platforms must be able to adapt not only to current leasing needs but also to unforeseen changes in market conditions, technology, and regulation.
A new generation of software is emerging that combines the ability to manage multiple lease types, adapt to complex regulatory environments, and offer innovative features like real-time analytics, AI-driven decision-making, and automated compliance processes.
The key advantage of these platforms is their ability to provide scalability without compromising on efficiency or security. Companies can now maintain standardisation across their operations while remaining agile enough to address the unique demands of each leasing transaction.
Case studies and real-world examples.
One notable example of successful platform adoption comes from a European equipment leasing company that specialises in construction and industrial machinery.
Faced with the challenges of managing a diverse and expanding portfolio across multiple countries, the company realised its legacy system was no longer adequate for scaling operations or ensuring compliance with varying regulatory frameworks.
To address these challenges, the company implemented a versatile, low-code and API-driven leasing platform designed to handle multiple asset types and integrate seamlessly with its existing ERP and CRM systems. The results were transformative.
Operational efficiency:
The company saw a 38% reduction in manual administrative tasks related to contract management. By automating lease tracking and reporting, the platform eliminated redundancies and reduced the time spent on data reconciliation by 44%.
This streamlined approach enabled the leasing team to manage a 25% increase in their portfolio size without adding new staff.
Compliance management:
With leasing operations spanning multiple jurisdictions, the company needed to ensure adherence to local regulations. The new platform included automated compliance checks, significantly reducing the risk of noncompliance.
The company reported a 28% improvement in regulatory audit scores, thanks to real-time updates and automated compliance processes, helping them meet the growing demand for ESG reporting.
Customer satisfaction:
By leveraging real-time analytics and AI-driven insights, the company improved the customer experience by offering more flexible lease terms and faster response times.
Customer satisfaction surveys indicated a 17% increase in overall satisfaction, with clients particularly appreciating the platform’s transparency in contract terms and real-time access to account data.
These tangible results highlight how adopting a versatile platform can drive operational efficiency, enhance compliance management, and significantly improve customer relationships – key factors for longterm success in today’s leasing landscape.
Future trends and innovations in leasing software.
The leasing industry is on the cusp of significant technological disruption, with AI and blockchain leading the way. AI will enable leasing companies to make faster, more accurate decisions, particularly in areas like credit risk assessment, asset valuation, and contract optimisation.
Predictive analytics, driven by AI, will allow companies to anticipate market shifts and adjust leasing terms proactively, improving both operational efficiency and customer satisfaction.
Blockchain, meanwhile, is set to revolutionise contract management. The transparency and security offered by blockchain-based smart contracts can reduce fraud, enhance trust between parties, and significantly speed up contract execution. In an industry that handles high-value assets and long-term agreements, these efficiencies will be game-changers.
However, these innovations will only be effective if they are supported by 100% API, future-proof, and flexible, adaptable software
platforms. The future of leasing will demand systems capable of integrating seamlessly with emerging technologies while maintaining the ability to evolve with industry needs.
Conclusion.
The multifaceted nature of modern leasing requires companies to rethink their approach to financing software. Agility and versatility are no longer an option, they are essential for success in this evolving market.
As leasing portfolios grow more complex and global regulations become increasingly stringent, companies that embrace
future-proof software solutions will be best positioned to thrive.
The path forward is clear: to remain competitive and compliant, leasing companies must invest in platforms that not only
meet today’s demands but are designed to adapt to tomorrow’s challenges.
With the right technology in place, leasing companies can unlock new opportunities, improve operational efficiency, and deliver superior value to their customers.
Author:
Thomas Nokin, CEO
Basikon
17 rue de Kronstadt
Garches, France
Email: Thomas.nokin@basikon.io
Website: www.basikon.io
Notes:
1. Leasing Global Market Report 2024
2. Deloitte 2024 Green Lease Report
3. Healthcare Equipment Leasing Market Analysis – Size and Forecast –
2024–2028
4. Deloitte 2022 survey
5. Grippin Data Management Solution, 2024
6. ELFA 2020 and World Leasing Yearbook
7. The World Leasing Yearbook and ELFA
8. PwC 2022 Pulse Survey
9. LogicManager, 2024