How Lenders Can Stay Ahead of the Competition

Supersport racers may know their bikes inside and out, but the great racers focus on their strategies for crossing the finish line and rely on their pit crews to keep their machines finely tuned. To achieve at the highest levels, they must rely on their team to ensure peak performance. Operating a powersports lease and loan management platform should be the same way. Lenders need their crew to understand your unique business, challenges, and needs and to operate with peak efficiency so that you can claim victory with your customers.

Powersports Finance is Unique & Technology Must Work for Lender

The powersports industry is unlike any other. It has a reputation for being an “I want” industry rather than an “I need” industry, but that is far from the truth. Each powersports asset represents an individual dream, a cherished memory, or the promise of adventure yet to come. The customers’ dreams are not watered down; nor should be a lender’s approach to the business.

The diversity of a lender’s customers and their assets creates financial opportunities and challenges that are just as unique. Succeeding is indeed not a “want.” To win in this space, a lender must be a powerful company with powerful solutions. Great technology is a critical success factor in getting lenders across the finish line first. If a lender doesn’t have the right cutting-edge technology specialists on its crew, it will get lapped.

Here’s Why You’re Unique

Challenges in Powersports Finance What to Look for in a Pit Crew
Unique market. Financiers work with new and used assets requiring dynamic, distinct financial product offerings. Dynamic Financial Products: Look for a solution that will enable you to run promotions with many different financial products. Flexible terms, special assessments, unique payment plans, seasonal capabilities, etc.
Need to cater to both off-road and on-road licensed and insured assets. Different rules, different financial products. One portfolio. Diverse Asset Management: Platform should identify differentiated financial and servicing rules based on the powersports asset type. Portfolio insights should tell you what you’re selling and how it needs to be covered so you can collect fees and provide excellent customer service. Portfolio management should differentiate for these different assets and their financial products, rules, inventory, etc.
Customers are driven by desire. You’re servicing all credit tiers, but likely near-prime or subprime. Credit Risk Differentiation: Look for intelligent systems that seamlessly perform credit analysis before the funding event, but also can perform advanced analytics on the changing profiles of your customer over the life of the contract so you can automate decisions on contract end-of-term and asset sales or disposition.
Leasing is picking up in this industry! Customers should have both loan and lease options from you.   Single Platform for Loans and Leases: To win and keep more business, and more returning clients, it’s critical that you can give loan and lease options. Imagine the scenario where your customer has a leased asset today, and near end of lease you want to “move” the asset through disposition by offering a simple loan process. Your customers will be delighted and your portfolio will be stronger!
Toys need add-on toys. Be able to add more equipment, supplies and services. Add-Ons. Financing in the Powersports arena also means the need to have add-ons to the finance contract, such as aftermarket equipment, insurance, other special terms for a fee. Make sure your platform smartly enables the financial product to hold these as simple add-ons with a fee, or manage them as entirely separate assets under the same contract, giving flexibility to the dealer and consumer, while giving control and profit to you.
Risk Controls are very important. Customer profile trends toward the impulsive. Executive Dashboard with Real-Time Portfolio Metrics: There needs to be effective controls in place to manage the portfolio and overall credit risk. Ideally an executive dashboard gives a view of the portfolio at a glance, including risks, delinquencies, credit profiles by segment or location, leases/loans that are maturing in the near term… all with data visualization that makes it easy to take action!
Consumers demand payment terms to meet their lifestyle or they’ll go elsewhere. Payment Flexibility: Be sure you can deliver flexible payment terms and schedules, skips, catch-ups, seasonal payments, multiple pays per month, and of course special fees to help boost profitability. ACH or Credit Card. Scheduled and ad-hoc.
Speaking of going elsewhere, isn’t that the entire category of Powersports? Be Mobile! Mobile Access: Demand the ability for customer self-manage via a mobile app that is connected directly to your portfolio management solution. It must facilitate notifications, promotions and payments (see infographic below – one NETSOL client takes 50% of their ad-hoc payments via mobile, which saves an outbound call or letter, saving money while collecting money – brilliant! And their customers are happy too!)
Infographic – Digital Enablement Is Powerful!
A case study of Motolease’s Digital enablement from NETSOL. Unique portfolio management and digital solutions technology that helped Motolease accelerate their business.

Operational Efficiency is the Clear Victor

Smaller lenders do everything the ‘bigs’ do, but ticket prices are lower so intense operational efficiency is paramount. Consider ways to have fewer moving parts in the engine – in an integrated lease and loan platform – from pre-contract all the way through remarketing, including the table-stakes of “Book, Bill, Collect” with all the in-life servicing and adjustment capabilities, plus document generation, collections, and customer self-service with a mobile app.

This allows the lender to focus on its other critical success factor – outreach to the dealers to get volume. By the way, wouldn’t it be nice to have data visualization (an integrated executive dashboard) that could help to see the value of individual dealerships, leading to better marketing and credit-risk decisions, differentiated dealer outreach, and geographical insights?

The Right Race-Day Preparation

Lenders need a solution as unique, agile and exceptional as its company and customers. If lenders don’t get it right, they will be lapped as competitors hit the powerband and accelerate away from them. Make NETSOL part of the pit crew. NETSOL will take care of the powersports lease and loan management platform so you can take the victory lap!

The race-day preparation starts here:

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