The Alta Group is planning to publish a closer look at global equipment leasing and finance trends for 2020. In the meantime, the following are a few takeaways from our article in the October Monitor. Thefull article on “Shifting Global Leasing Markets Point to Places for Expansion”discusses political. economic and equipment finance conditions in select geographic regions but we’ll zero in here on some potential growth opportunities for U.S.-based businesses.
“Many fast-growing markets, such as Poland and others in Eastern Europe, are relatively immature with opportunities for further penetration,” said Richard Ryanof Invigors EMEA, Alta’s organization in Europe. “Whether through vendor programs or direct lending, a strong local partner is key to success.”
In fact, opportunities in Central and Eastern Europe will be one focus of the Lease Conference Istanbul 2019Nov. 20-21.
Ryan added that “IT equipment leasing has been particularly buoyant in Europe, which is interesting given the general move to the cloud and ‘everything-as-a-service.’ One would expect this to suppress demand for asset finance. This has not been the case, with several players active in the market. Independent specialist finance providers that offer full-lifecycle IT management solutions have been particularly successful.”
Rafael Castillo-Trianaof Alta’s Latin American Region pointed out that the U.S. is a global leader in technology, telecommunications and digital transformation. He sees Latin American growth opportunities in equipment finance related to this, and for industries that once were manufacturing-only but are now shifting to digital-based propositions. Examples of this include ride-sharing applications, electric and autonomous vehicles.
Castillo-Triana also noted opportunities for Apple in particular. “In our Alta LAR 100 database, we identified smart phones as being among the three most imported assets into Latin American markets. The iPhone has been the leader, but there is no smart phone lease financing, and this gap is being filled by other players that are gaining market share at the expense of Apple.”
He will discuss findings from the latest Alta LAR 100 report on the region’s leasing trends and major players at the Latin American Leasing ConferenceNov. 7-8 in Mexico City.
Middle East and Africa
Hans Geijsenof Invigors EMEA estimated that the Middle East and Africa have a lease potential of more than $100 billion, based on a World Bank Group analysis. “However, many countries still lack a sufficient knowledge of leasing to realize its benefits and do not have adequate regulations and laws in place to make banks and other financial institutions sufficiently comfortable to offer leasing. Typically, more traditional forms of finance, like loans, are preferred.”
To address this, Invigors EMEA and Alta’s Latin American Region have organized the Lease Conference Istanbul 2019for Central and Eastern Europe, the Middle East and Africa Nov. 20-21. “Our goal is to raise the profile of leasing and make banks, financial institutions, manufacturers and suppliers aware of its benefits, current trends and developments,” Geijsen explained.
Castillo-Triana has helped a number of countries in Africa, the Middle East and other regions improve their leasing infrastructures by sharing his knowledge. “If you look at a map of the IMF’s World Economic Outlook, the outliers in economic growth are mainly located in Africa. The Middle East also has great resources and, although it is currently in the middle of a conflict zone, it needs to migrate into leasing to fuel economic development. One example is the Saudi Arabia 2030 vision, and there are many other areas of interest,” he said.