Asset finance in the Middle East: The importance of specialized platforms vs. ERPs

The Middle East is on the brink of a massive transformation as it relates to the role of leasing in both business and society, and it’s a transformation that’s going to open up tremendous opportunities for companies in the region. Business leaders in markets that have undergone similar transformations have all gradually come to the same realization as it relates to ramping up their leasing programs: from a software standpoint, success requires specialized asset finance solutions, not just enterprise resource planning (ERP) customizations.

While they might seem convenient, ERPs fall short of delivering the specific capabilities required for asset finance success in these areas:

• Lack of industry-specific tools: ERPs are great for general business tasks but lack essential features for asset finance such as asset tracking, lease management, and regulatory compliance tools.
• Inefficiency of manual workarounds: Using ERPs often means your team must create complex manual processes to fill gaps, leading to wasted time, errors, and frustration.
• Struggling to scale: As your portfolio grows, ERPs can’t keep up. They’re not built to handle the dynamic demands of asset finance or provide the flexibility to drive new business initiatives, limiting your ability to adapt and expand quickly.
• Lost opportunities: Without tailored automation and insights, you’re missing out on faster deal originations, improved portfolio management, higher credit worthiness, and superior customer experience.

The Benefits of Specialized Asset Finance Platforms

As more businesses in the Middle East add leasing programs to their offerings, many are acknowledging that customizing their existing ERPs to accommodate these programs can be expensive, time-consuming, and ineffective. Ultimately, companies are more likely to be successful in the leasing space if they employ a specialized asset finance solution.

What should they be looking for in such a solution? Here’s a quick checklist:

• Industry expertise: Specialized platforms require a specialized focus. Looks for partners and platforms that fully understand and address the complexities of the asset finance industry. The team you work with should be composed of domain experts who bring relevant industry experience and regional expertise to help achieve your goals.
• A platform that grows with you: Businesses need to be able to manage their entire asset lifecycles through a flexible, composable platform. Look for a platform with automation at its core, boosting efficiency and accuracy from origination to servicing.
• New business opportunities: To scale faster, look for a solution with specialized tools for managing assets, client relationships, and financial reporting in line with IFRS 16 accounting standards for equipment leasing and rental businesses.
• Compliance Focused: A strong asset finance solution should have real-time reporting and built-in compliance tools to keep you on top of market changes and regulations.

The next few years will be crucial ones in the Middle Eastern asset finance space. The companies that emerge as leaders will share a common trait: They’ll be the ones that prioritized specialized solutions out of the gate, rather than wrestling with customizations to their one-size-fits-all ERPs.

If you’re looking to gain a competitive edge in the asset finance space, let’s talk about what Odessa’s specialized asset finance solution can bring to your organization.