Top Trends in Finance: What does the future of secured finance hold? 

The world of secured finance is constantly evolving as the economy, consumer habits, and technology shift over time. Knowing what to react to can be a fine balance, and by keeping an eye on the trends, you’ll be able to make the right choices and come out on top.  

There are a number of trends in secured finance, and we’ve highlighted the most relevant ones to your business. 

Lenders will embrace new technologies 

Research indicates that the secured finance industry is slow to adopt new tech compared to other industries. However, things are starting to change, as innovation offers opportunities for lenders to streamline processes, cut down on manual tasks, and reduce costly IT spend. 

Artificial Intelligence (AI) will become a key tool for lenders. As we mentioned in our previous “Emerging technology and why it matters” blog, machine learning will allow lenders to supplement their risk management through software automation, enabling them to analyze all their data to predict trends and identify any risks. 

Cloud services are also becoming increasingly popular with lenders. According to a survey by Harris Poll and Google Cloud, 83% of financial services leaders across the globe use the Cloud as their primary computing infrastructure. Solifi is already taking advantage of the considerable perks that the Cloud brings with our SaaS cloud-hosted solutions. 

Changing needs will present new opportunities (and challenges) 

As consumers become more conscious of their impact on the world, they are looking to buy products that address this. Assets such as electric vehicles are becoming more popular, with the global market estimated to reach over $620bn in revenue in 2024. Sustainable finance will be an area that we believe will continue to grow, especially as global climate change targets become more ambitious.  

However, finance regulations also continue to evolve, especially when it comes to data privacy. Now more than ever, lenders need to be conscious of the way they store and use data. New technologies will also be of good use for regulatory compliance enablement, keeping data protected and away from the risk of human error. 

There will be more collaboration between lenders and technology companies 

According to original research featured in our Top Trends in Secure Finance 2024 eBook, 97% of sales professionals believe there is an opportunity for collaboration between traditional financial institutions and technology companies. As we previously mentioned in the first blog of the series, digital innovation is key to remaining competitive in the secured finance space. Technology is the future of secured finance; processes will become more streamlined, data more protected, and risks managed much more easily. Solifi offers solutions for working capital, equipment finance, automotive finance, and wholesale finance on our Open Finance Platform that can assist with all of this.

Why not start your journey today?