Receivables finance lenders are feeling optimistic about the year ahead as the end of government support is set to drive market growth, a global report has found.
Risk management software EQ Riskfactor’s Navigating 2022 and Beyond report – which interviewed senior professionals from the receivables finance industry across the UK, US, Germany, France and the Netherlands – found that lenders are feeling positive and optimistic about the year ahead.
Lenders believe they have a huge opportunity to attract new customers driven by government support schemes coming to an end and a rising demand for finance. These would have previously been cash secure and not considered receivables finance as a working capital solution.
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However, the report found that challenges remain too. Receivables finance lenders need to remain responsive and agile to quickly changing conditions and should have robust strategies in place.
The report said that lenders will face more competition and to meet the challenge must invest in technologies which help quicken and optimise processes both for themselves and their customers.
This year, lenders expect to use more sources of data in 2022 to make better informed decisions in order to support enhanced risk monitoring.
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“It is reassuring to hear in our report that lenders are feeling confident and optimistic about the year ahead,” said Mark Watkins, director at EQ Riskfactor.
“There are definitely many positives in the market, yet despite this, lenders will still need to overcome challenges. Those that employ technology to help them respond to fast changing conditions will be best placed to overcome uncertainty and gain competitive advantage.
“Data and technology together will improve speed of decision making and ongoing risk monitoring, benefitting the overall customer experience both through onboarding and ‘in-life’ relationship with the lender.”