The global factoring industry has demonstrated steady growth over the years, with ample potential for further expansion. In a recent interview during FCI’s 56th Annual Meeting in Seoul, Kevin Day, CEO of Lendscape, discussed the key trends and ideas shaping the world of receivables finance and factoring with Deepesh Patel.
Lendscape is dedicated to providing software and technology to banks and non-banks worldwide, supporting their factoring, business discounting, asset-based lending, and supply chain finance businesses. Their goal is to enable smarter lending by reducing costs, driving a more digital agenda, and delivering critical funding to small and medium-sized enterprises (SMEs).
A major challenge in the receivables finance industry is the need for simplification. Kevin Day believes that utilizing digitalisation can offer a much more simplified lending solution, expanding growth potential and enabling lenders to better support the market.
Lendscape’s latest project, Lendscape CONNECT, aims to connect various technologies in the space, including data extraction technology. This software automates borrowing-based calculations without human intervention, providing SMEs with a hands-free experience and lenders with a more efficient and user-friendly service.
Another significant theme discussed during FCI’s annual meeting was the development and growth of factoring as an industry across different geographies. Lendscape is focusing on addressing the unique characteristics of emerging and developing markets and sharing best practices and knowledge with these markets.
Through sponsoring the education program of FCI and making technology and best practices available, Lendscape is committed to helping these markets develop and grow. Day believes that investing in people and building up human capital through education is not only beneficial for the business but also supports the growth of the industry as a whole.
In terms of global market growth, emerging economies, particularly in Africa, are showing dramatic growth in the factoring industry. On the other hand, developed economies are seeing shifts in dynamics as traditional financial institutions face competition from fintech companies. This has prompted organizations to reassess their offerings and make the borrowing experience easier for the end user.
Lendscape is at the forefront of driving forward and nurturing this business, believing in the financial product’s potential to support SMEs and economic growth.
In conclusion, Lendscape’s innovative approach to the factoring and receivables finance industry is setting the stage for continued growth, both in developed and emerging markets. By focusing on simplification, education, and technological advancement, Lendscape is playing a crucial role in reshaping the future of lending and finance.