Business Case Digital Leasing Back office
Customer requirements
Challenge
Solution
afb Product
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All business cases

Customer requirements

Renewal of the back office yes - but only if maximum flexibility remains!

If you talk to leasing companies about the topic of "digital back office", many are still skeptical when it comes to "touching the back office". They are happy when the existing systems are running, even if they are out of date and require a lot of manual work due to isolated solutions that are difficult to work together. After all, topics such as contract management in leasing are still mentally linked to large-scale IT projects. But everyone knows and is afraid of the consequences of large-scale IT projects.

“In the past” it was common to map all functionality in monolithic systems - with technologies that have become obsolete in the meantime, are hardly available and / or have become too expensive to maintain, and due to the lack of programmers and documentation, can hardly be adapted and therefore cannot meet more modern requirements – from the market and customer behavior as well as as a result of ever more extensive regulations.

How can you create the departure into a modern world without paralysing the company for years through a "major project"? The operational risk of such a procedure and the need to adjust the entire company to a new core system leaves many in the status quo - with no prospect of improvement.

A new system is wanted, yes. But please stay flexible!

A challenge for providers

Open heart surgery

Unlike companies that start “greenfield”, established leasing companies have developed a - usually extensive - contract portfolio and, over the years, specific usages for and with their customers. Migration and mapping of all specifics are not small challenges for the renewal of the central system of a leasing company, which on the one hand has to ensure payment transactions, the regulatory reporting system, controlling and risk controlling itself or via interfaces to customary solutions, and on the other hand is “filled” in according to customer onboarding and application processes with new contracts that need to be managed and controlled - here too with rising demands from increasingly differentiated products for accounting and valuation (IFRS) as well as for the mapping of contract adjustments, premature expiries or replacements.

This can only be met through a project and procedural model, which can fall back on a modern (business and IT) solution with a state-of-the-art IT architecture and which is able to map the necessary workflows appropriately.

Solution

Stable backbone, but openness on all sides

  1. Use of industry standards
  2. Easy integration into existing IT landscapes
  3. Open interfaces for best-in-class services process control
  4. Flexible workflows as success factors
Business case

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Even if more and more companies are dealing with the digitisation of B2B business, digital onboarding of B2C remains important. In the meantime, perfect digital onboarding has become the standard or is considered essential. afb Application Services was one of the first companies to map the process from the orientation phase to the conclusion of the contract completely digitally and without media breaks.

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Business case

Digital Onboarding B2B

A large number of financial service providers are currently engaged in digital onboarding, whose business models are based on the B2B business. With the help of afb, these companies can also digitally design the process. Digitisation is not limited to onboarding. The daily follow-up business is also becoming digital and much more efficient.

Learn more about Digital Onboarding B2B

Business case

Digital Refinancing

Financial service providers increasingly wish to be able to determine refinancing packages at the push of a button. This enables applicants to refinance in line with their needs and to react more flexibly to the increasingly complex purchasing policies of the refinancers. afb has developed a lean IT solution for this.

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Digital Property Financing

Are you looking for a solution with which you want to inspire customers? With digital real estate financing, the potential prospect has the same expectations for the “shopping experience” as he is already used to when buying consumer goods digitally. He wants easy access to all financing options, without media breaks, no waiting times, etc. With this solution you can meet the requirements of your customers and win them over.

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Business case

Digital Vehicle and Product Data

Modern ERP systems require a comprehensive, up-to-date and consistent database to ensure the efficiency of processes and the quality of the decisions. In our role as an innovation and transformation partner, we have been ensuring a tailored and system-optimised data supply for the customers of our comprehensive afb Credit Management System (afb-CMS) for years.

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Business case

Maturity Check-up

It is more essential than ever to be as digital as possible. Those companies whose processes work digitally react more flexible and robustly than those without digital ones. It is therefore worth gauging your own digital capabilities again. The afb Digital Maturity Check-up is a lean consulting tool that is tailored to this issue in terms of its implementation and the desired result.

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Business case

Future-IT-Architecture

Can your IT keep pace with the exponentially increasing requirements caused by the king customer, growing pressure to innovate, rising security requirements and constantly changing regulations? Is this question causing you worries? The fact ist hat flexibility is a vital factor for survival. The way out of this situation is via afb-Consulting. We will quickly help you to determine the right path.

Learn more about Future-IT-Architecture

afb Contract Management as a solution

Fully digital back office based on future IT architecture

With a new system, despite the initial investment, there is a chance of long-term cost savings – and fundamental renewal. Efficient processes and the clearing up of established structures can be achieved. After all, different sets of data, from which the legal holdings must first be extracted, and inconsistencies that need to be remedied, are more the rule in practice rather than the exception.

The solution: Core services are only implemented once and then made available centrally in all constellations; this applies to partners and roles, objects, products, calculation and risk decisions. Output management, document handling, reporting with data warehouse, business intelligence & artificial intelligence for the evaluation of big data etc. complete the functionality, clear IT structures ensure future viability.

This is the Contract Management module group of the afb Credit Management Solution

Even if all areas of afb-CMS offer added value for leasing companies, the module group Contract Management should be emphasized for the digitisation of the back office.

The multiple functions provided by this module group allow financial services providers to process contract management and bookkeeping for the available types of business, such as retail financing for credit and leasing, and wholesale financing. The fully automated processes ensure that all standardised, recurring operations relating to contract management and contract bookkeeping are carried out without manual intervention, thus enabling them to be completed considerably faster and without error.

This module group enables the execution of all business transactions required for opening, processing and terminating contracts. In the field of wholesale financing, a fully integrated dunning system complements the scope of functions.

Individual accounts and accounting functions for the automated recording of all contract-related income and expenses, revenues and expenditures as well as deposits and withdrawals ensure full contract bookkeeping. Functions for the automated processing of incoming and outgoing payment transactions and for receivables management complete the range of services.

External systems for accounting, reporting and payment transactions are integrated via standardised interfaces. All necessary information relating to contract bookkeeping is transferred to the financial and cost accounting sections of the central accounting department, and upon request to group accounting. An asset accounting function is provided or integrated for the leasing area.

The Contract Management module group can do this:

  • Specialised modules for various user groups, such as bank employees and employees working at the point of sale
  • Standardised business transactions for business types such as retail financing for credit and leasing or wholesale financing
  • Support for the opening of contracts, i.e. activation/validation for disbursement and for the automated receipt of payments or termination of payments, if the contract is not concluded
  • High usability in contract processing, e.g. changes to the asset or product, extensions and inclusion of another lessee in the leasing contract or, for example, in the case of extensions or special repayments in wholesale financing
  • Simple execution of regular or premature contract termination, e.g. revocation or rescission in wholesale financing
  • Automated processes, generated by business transactions that perform functions on the relevant maturity date and post entries in contract bookkeeping
  • Manual entries for special occurrences using ready-made booking templates, including pre-filled data and validation
  • Recording of all entries and automatic actions in the journal according to time by value date and entry date and period, and objectively sorted by for example department, client, document number, document item, document text, amount, ledger, personal account, contract account
  • A comfortable, purposeful search of information through targeted search, and the selection of sorting criteria and search filters
  • Company code-specific enclosures and maintenance of the required unified accounting systems, defining limits and balances as well as person or contract related settlement accounts
  • Automated compensation of claims under integrated receivables management and manual clearing for unrecognised items
  • Integrated, standardised dunning with dunning history and overview of the current backlogs in the different dunning levels
  • Special booking functions for fully automated payment transactions with interfaces to payment systems in order to effect the payments in inter-bank transactions
  • Transferring bookings of contract accounting backed up by additional information at least daily to the general bookkeeping department via standardised interfaces and ensuring the correctness of the transmission via reconciliation functions
  • Providing information for reporting and controlling via standardised interfaces

Advantages of afb module group Contract Management

Advantages of afb module group Contract Management

  • End-to-end system: the entire life cycle of a contract – from its opening, processing right through to its termination – is designed as a fully integrated, digital system.
  • Free choice of sales channels: the functions of contract management and bookkeeping are no longer performed only by employees of the financial services provider, but are made available to employees at the point of sale (POS), as well as to field staff and other partners involved in the conduct of business.
  • Improved competitiveness: previous front and backoffice functions are mapped for all business types in an integrated, web-based system. As a result, efficiency, quality and customer orientation are significantly increased, thereby enabling successful differentiation in the market.
  • High level of automation: the solution is designed for large volumes, standardised processes, fast decisions and automated contract management. If necessary, the system also supports authorised personnel with manual processing.
  • Flexible financial products: flexible financial products for specific business types can be provided without restrictions between front and back office in a very short time.
  • Multi-currency capability: the module group supports country-specific formats. The ability to manage currencies and exchange rates is an important prerequisite, particularly for international companies.
  • Multi-client capability: the module group supports several company codes/clients per business transaction. This means that each client has its own accounting system, payment transaction accounts and general ledger accounts as well as specifically established export and import functions for payment transactions, general ledger export and sub-ledger import.
  • Local and international accounting principles: parallel accounting pursuant to local and global accounting standards such as HGB and IFRS by means of account areas in contract bookkeeping is possible at any time. In asset accounting, parallel accounting is mapped fiscally, locally and globally through the assessment areas, e.g. HGB and IFRS.
  • Proper accounting: all commercial and tax requirements for accounting systems are supported. This includes the principles of proper bookkeeping and IT-supported bookkeeping systems (GoB, GoBS), Principles of Data Access and Verifiability of Digital Documents (GDPdU) and in this context, the statements released by the German Institute of Chartered Accountants (IDW).
  • Flexible execution of orders: the automated function is not tied to fixed batch runs, but can significantly regulate the daily business flow by choosing any execution date.
  • Centralised view of all contracts: data can be displayed from the perspective of both an individual contract and all contracts in real time.

afb Contract Management is part of the afb-CMS

Independent unit and still part of a unique "big picture"

For the digitisation of the back office of leasing companies, the afb Contract Management module group is a central component of the afb-CMS, the business solution. True to the consistent modular principle, the module group can be used independently by leasing companies. In addition to Contract Management, other modules are relevant. Among other groups, these module groups should be emphasized:

Vorteile der Business Solution

Flexible Vertriebsunterstützung

Verlagerung von Backoffice-Prozessen (z. B. Berechnung vorzeitiger Ablöse-Angebote) ins Frontoffice, Integration von Risk Adjusted Pricing, Cross- und Upselling
Vorteile der Business Solution

Mehr Effizienz

Effiziente, strukturierte und weitgehend automatisierte Bearbeitung des Tagesgeschäfts sowie automatisierte Prüfung und Nachforderung von Unterlagen
Vorteile der Business Solution

Multi-Channel-Vertrieb

Mandantenfähige Lösung für alle Vertriebskanäle (Filiale, Callcenter, Außendienst, Internet), gleichermaßen für private und gewerbliche Kunden
Vorteile der Business Solution

Multi-Device-Fähigkeit

Optimierung für alle gängigen Endgeräte (PC, Laptop, Tablet, Smartphone) und Nutzer (Kunde im Internet, Verkaufsberater mit Tablet etc.)
Vorteile der Business Solution

Durchgängiges System

Abbildung sämtlicher Anforderungs-, Angebots-, Antrags-, Vertrags- und Remarketingprozesse in einer durchgängigen webbasierten Lösung mit automatisierter Kreditentscheidung und -bearbeitung, Valutierung und Vertragsverwaltung
Vorteile der Business Solution

Automatisierung

Steuerung sämtlicher Finanzierungs- und Leasinggeschäfte für private und gewerbliche Kunden über standardisierte, automatisierte Prozesse
Vorteile der Business Solution

Modulare Architektur

Optimale Anpassung an kundenindividuelle Anforderungen durch modularen Aufbau aus standardisierten Komponenten
Vorteile der Business Solution

Internationaler Einsatz

Jederzeit mehrsprachig und mit der Währung des Zielgebiets nutzbar
Vorteile der Business Solution

Datenvervollständigung und -prüfung

Hohe Benutzerfreundlichkeit durch Komfort-Services wie automatische Datenvervollständigung und -validierung
Vorteile der Business Solution

Einfache Integration

Serviceorientierte Architektur für einfache Integration in heterogene Systemlandschaften

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Our experts, among others Dr. Lars Rüsberg will be happy to answer any questions you may have.

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Successful practical implementation at a glance

Did you like our business case for Digital Leasing Back office? Then keep looking around! The following is an overview of our most important business cases. These are examples of how afb customers use our IT and consulting services successfully in their individual environment.