The asset finance industry is evolving rapidly. Increasingly complex market conditions, evolving regulatory requirements and the rise of digital technologies are reshaping the way organizations operate. At the same time, the threat of fraud is escalating, with dealerships reporting rising losses, making it essential for lenders to rethink their approach to managing assets, compliance and risk.
A November 2024 survey showed that 79% of dealerships reported an identity fraud related vehicle loss. Among them, 40% reported losing one to two vehicles, and 60% losing three or more. The impact of managing these challenges is significant, not only in cost, but also in the time it takes to manually track down lost resources and chase losses.These statistics highlight why asset finance companies must proactively strengthen their defenses against fraud and reinforce compliance controls.
Furthermore, a Brady Ware study found that asset misappropriation makes up 86% of occupational fraud cases, totaling $100,000 per case. In addition to fraud risks, lenders also need to grapple with regulatory challenges and losses caused by non-compliance, the specific rules of which differ from country to country. Global businesses need to find an effective way to manage regulatory requirements and risks across multiple countries.
In this study, we explore how asset finance organizations can use digital tools to address this new wave of challenges they face – whether it’s enhancing their auditing processes, bolstering risk management and compliance, or improving operational efficiency.
When it comes to digital transformation of your wholesale or floorplan audit and risk management, it’s important to find a solution that offers the most flexible network deployment, the best live customer support and real-time dynamic risk management, as well as behaving less like a supplier and more like a long-term partner. With the support of a provider invested in the longevity of your business, you can be confident that your organization will continue to grow and meet new technical challenges head on.
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