“Technology and data-driven FinTechs are broadening the spectrum of funding sources in commercial finance through automated financial services marketplaces,” said Patricia M. Voorhees, a director in The Alta Group, who added that by diversifying funding sources they are optimizing their cost of funds and building balance sheet resiliency. This is attracting capital investment interest, she added, giving them potential access to securitization markets as business volume reaches appropriate scale.

Vorhees presented recently at a Commercial Equipment Marketplace Council (CEMC) event in New York that brought together traditional equipment finance and FinTech executives as well as investors in commercial finance. While the presentations were exclusive to attendees, highlights of our conversation with Vorhees and other equipment leasing and finance industry thought leaders are featured in this three-minute video.

The Alta Group and Currency Capital co-founded the CEMC in 2016 to create a forum for education and discussion.

“The purpose of the CEMC is to pull together the best and brightest in the equipment leasing and finance industry and the FinTech community—to create this conversation together, said
Charles Anderson, CEO, Currency.

“It is as much about convergence as it is about disruption,” said Rich Gumbrecht, immediate past chairman of the Equipment Leasing and Finance Foundation. He said it is about how traditional companies need to adapt and modify the way they do business and how FinTech companies need to think about bridging the gap between traditional financing practices and what clients need today.

Bill Verhelle, CEO, Harvard Partners LLC, concurs on the need for a broader perspective in our industry about how to serve customers.

The Alta Group will be a sponsor at LendIt USA 2017, March 6-7 in New York, where more than 5,000 people active in lending and FinTech will converge for this global conference. If you are going to be there, contact our consultant, Patricia Vorhees at pvorhees@thealtagroup.com to arrange a time to meet.