Technological Advances in Equipment Finance

By: Steven Carnegie | CTO

In the ever-evolving world of finance, technology has become a key player in advancing industries and revolutionizing traditional processes. This blog explores the role of technology in reshaping equipment financing practices and highlights how Dext Capital is using technological advances for the benefit of its customers. In addition, it describes the introduction of a new provider channel that will further enhance the reach of Dext’s financial offerings.

Machine Learning for Underwriting

The leasing industry has undergone a revolution thanks to machine learning (ML) for underwriting, which has given businesses like Dext Capital previously unheard-of ability to render credit decision in seconds or minutes. By identifying algorithms to meet their unique requirements, lessors can increase automation and efficiency with easily accessible “build your own models” ML tools. But even with ML technologies’ accessibility, data is still a major obstacle. Leveraging its substantial history of over 10,000 underwritten deals has been crucial for Dext Capital in obtaining the required amount training data. Using this historical data, Dext Capital has created several advanced machine learning models that can automate app-only deals. This innovative use of data speeds up the underwriting process, enhances accuracy and risk assessment, which in turn results in better decisions and outcomes for both the business and its customers. The use of machine learning (ML) in underwriting procedures is expected to transform industry norms and spur additional advancements in risk mitigation and fraud prevention as ML continues to develop.

Omnichannel Interactions

The introduction of omnichannel interactions, which provide a smooth and connected experience across several touchpoints, has completely changed how companies communicate with their partners and consumers. Companies may increase accessibility and convenience while developing deeper connections by meeting people where they like to conduct business—through websites, phone applications, or messaging. Understanding the value of omnichannel engagement, Dext Capital has created DART, a mobile-first web application that enables partners to enter, underwrite, and document deals on their own, around-the-clock, from anywhere. This cutting-edge platform, which can be accessed through mobile, tablet or desktop browsers, gives partners exceptional flexibility and efficiency in their interactions. Dext Capital improves partner satisfaction and collaboration while streamlining operations through the automation of key procedures. This deliberate adoption of multichannel communications highlights Dext Capital’s dedication to advancing the industry’s digital transformation and satisfying the changing needs of its stakeholders.

Large Language Models

Though still relatively young, large language models (LLMs) like ChatGPT are gaining popularity. Many solutions utilizing this technology are emerging onto the market, enabling businesses to automate some of their most repetitive processes. Dext Capital is investigating various approaches to using these technologies among its teams. It hopes to improve the efficiency of existing proccess by employing LLMs to evaluate legal documents and examine applications. Dext Capital continuously invests time and resources to keep ahead of the adoption curve by prototyping using LLM models across sales, credit and contract administration. Dext’s CTO, Steven Carnegie champions using LLMs to transform how the company goes to market and performs back-office functions.

Technology Vendor Channel

To further improve Dext Capital’s services, it has introduced a new Technology Vendor channel. Led by Ralph Tomei, a 25-year veteran with significant tenure as Key Equipment Finance’s technology business leader, joined by seasoned industry professionals Jacque Garscin and Heather Scott, who both have an impressive two decades of experience managing multiple technology vendors. programs This team brings an innovative approach to connects equipment suppliers directly to the financing process, creating a more integrated and seamless experience for both sellers and customers. The technology channel offers seamless integration, allowing vendors to submit equipment financing requests on behalf of their customers. This not only reduces the administrative burden on clients, but also ensures that providers and financiers are on the same page and working together to meet the client’s needs.

Altogether, these new technologies highlight the impact of innovation on the leasing industry and the possible benefits that can be obtained.  Dext is excited to be in the vanguard of companies advancing the art of the possible using technology and teamwork!