CEO, BNP Paribas 3 Step IT: The circular economy, not just recycling but giving a second life to assets

Carmen Ene joins host Richard O’Donohue to explore how circular economy principles are reshaping IT asset management.

The circular economy, not just recycling but giving a second life to assets

In this episode of the AFC European Equipment Finance Podcast, Carmen Ene, CEO of BNP Paribas 3stepIT, joins host Richard O’Donohue to explore how circular economy principles are reshaping IT asset management. From reducing emissions to driving cost-efficiency, Carmen shares practical insights on sustainable finance, regulatory trends, and the importance of diversity and leadership in tech.

Carmen explains how BNP Paribas 3stepIT is pioneering a circular approach to IT asset management, acquiring, managing, and refurbishing devices to extend their lifecycle. She emphasizes that achieving net zero is impossible without embracing circularity, as most emissions come from manufacturing.

The conversation highlights how refurbishing IT equipment significantly reduces environmental impact. Carmen cites research showing that their model cuts laptop emissions by 17% and reduces ecological footprint by 24%, making a strong case for sustainable IT practices.

Carmen discusses how countries like France are leading with regulations that promote refurbished tech in public procurement. She notes that similar policies are spreading across Europe, creating momentum for circular economy solutions in both public and private sectors.

Beyond environmental impact, Carmen stresses the financial and operational advantages of circular IT including lower costs, improved security, and better asset tracking. She positions sustainability as a smart business strategy, not just a moral imperative.

Carmen shares her personal journey as a female leader in tech and finance, reflecting on the importance of mentorship, male allies, and inclusive leadership. She also discusses the role of women in AI, where human-centric skills like empathy and communication are increasingly vital.

AFC Podcast: Carmen Ene

The case for a unified, agile SaaS platform in commercial lending | Audience: European commercial lenders

A configurable, intelligently automated, connected technology platform can offer truly enhanced efficiency and customer experience.

Technology platforms are not always magic. However, truly enhanced efficiency and customer experience - brought by a configurable, intelligently automated, connected platform - can make it seem that way.

Commercial lending teams today face mounting pressure from rising customer expectations, tighter regulatory demands, and shrinking margins. Banks need to calculate and distribute risk efficiently from a consolidated portfolio. Yet many institutions still rely on fragmented, legacy systems - often inherited through acquisitions - that are product-specific and lack the integration capabilities needed to provide a real-time, portfolio-wide view.

The simplified data architecture of a single platform reduces operational complexity and delivers a 360-degree view of customer exposure.

Transitioning to a unified, configurable SaaS platform offers a compelling solution. The simplified data architecture of a single platform reduces operational complexity and delivers a 360-degree view of customer exposure - critical for managing risk and ensuring accuracy, as well as facilitating next-generation AI tools.

Automation and integration: The new standard

Automation is no longer optional in modern loan operations. It’s essential for reducing manual effort, ensuring consistency, and accelerating turnaround times. Platforms should be built with automation at their core - supporting configurable, rules-based workflows, real-time reconciliation, and seamless integration with third-party systems, including incorporating AI agents via robust APIs and flexible webhooks.

Platforms should be built with automation at their core - supporting configurable, rules-based workflows, real-time reconciliation, and seamless integration with third-party systems.

Intelligent automation not only minimises errors, but also frees up teams to focus on strategic, high-value activities.

Real-time insights for real-time decisions

In a fast-moving market, daily reporting cycles are no longer sufficient. Delays in assessing risk exposure, liquidity or operational performance can lead to missed opportunities; or worse - missed red flags.

A real-time architecture enables up-to-the-minute insights, empowering lenders to make dynamic decisions and proactively manage risk. Whether adjusting credit limits, responding to market shifts, or identifying cross-sell opportunities, timely data is a game-changer.

A real-time architecture enables up-to-the-minute insights, empowering lenders to make dynamic decisions and proactively manage risk.

Automated workflows for speedy settlements and restructuring (such as document generation, notifications and approvals) depend on real-time inputs. The increased requirement for distributed risk mandates fast and accurate transfer of information between parties, so they can confidentially assess current risk positions and make robust decisions. Institutions relying on batch reports risk falling back on manual workarounds, increasing the likelihood of errors and undermining automation gains.

Regulatory compliance is non-negotiable, but it doesn’t have to be complex. A single, integrated SaaS platform simplifies the enforcement of internal controls, maintains comprehensive audit trails, and adapts to evolving regulations across multiple product types.

Compliance should be built in, not bolted on.

Configurability is key. Compliance should be built in, not bolted on. This allows system administrators to review and update rules and workflows centrally, tracking the audit of the real-time system-based decision-making at every step. This ensures best practices are maintained and reduces the risk of costly fines as regulations evolve.

Futureproofing through frictionless upgrades

Financial services are evolving rapidly, and lenders need platforms that evolve with them. A SaaS-based solution ensures seamless upgrades, giving institutions access to the latest features and innovations - without the disruption or cost of traditional development cycles, or the complexity of deployment and maintenance for on-prem software.

Having all your data on a single platform in real time, and a robust workflow and rules engine at your disposal, positions everyone - your internal teams, your customers and your intermediaries - well for success. This unified approach provides a competitive edge, and represents a solid framework for integrating emerging technologies like AI agents and low-code solutions.

In a competitive, dynamic market, the winners will be those who can adapt quickly, operate efficiently, and scale effectively. A unified, integrated platform doesn’t just help you keep pace - it positions you to lead.

Alfa’s experience delivering efficient operations to complex top-tier lenders means we’re well placed to guide you in achieving your goals around originations, servicing, risk management and beyond. We’re ready and waiting when the time is right.

Make an Enquiry | Request a Demo | Learn more about Alfa Systems

VIEWPOINT: Doing more with less

Invigors: Why Asset Finance is more human and more innovative than ever

Industry experts Ian Robertson and Richard dive deep into the evolving landscape of asset finance.

In this episode, industry experts Ian Robertson and Richard dive deep into the evolving landscape of asset finance. They explore emerging technologies like agentic AI and intelligent document processing, highlighting their real-world applications and limitations. The conversation offers valuable insight into the continued importance of human relationships in an increasingly automated world, especially in complex, high-value transactions.

The growing role of AI in asset finance—and how it complements, rather than replaces, human expertise.

Transparent discussions around vendor finance and OEM partnerships.

The rising interest from alternative asset managers in under-served niches, such as sale-and-leaseback models and green energy solutions like green methanol.

Encouraging signs from the next generation in the industry, particularly their innovative thinking around AI and sustainability.

A call for the industry to better articulate its value, especially in lifecycle asset management and resource efficiency.

Whether you're a long-time industry professional or curious about the future of finance, this episode offers both strategic insight and fresh perspectives.

AFC Podcast: Ian Robertson

Richard speaks to a number of guests who attended and spoke at the event, to get their views of topics discussed throughout the day such as AI.

AFC Podcast: Leaders’ Summit Europe LIVE

This special feature-length episode was recorded live at the Asset Finance Connect Leaders’ Summit Europe. Richard speaks to a number of guests who attended and spoke at the event, to get their views of topics discussed throughout the day such as AI.

Alfa has announced a new preconfigured SaaS offering for European asset finance companies.

Alfa Start for European Asset Finance allows auto and equipment finance operators to conduct a quick and cost-effective implementation of Alfa Systems.

Alfa Start for European Asset Finance allows auto and equipment finance operators to conduct a quick and cost-effective implementation of Alfa Systems, Alfa’s flagship platform for originations, contract servicing, collections management and more. It draws on predefined best-practice configuration and processes, perfected over Alfa’s considerable experience supporting top brands around the continent.

Since launching in 2020, Alfa Start’s rapid implementation methodology has found success in the UK with progressive finance providers and challenger banks such as United Trust Bank, Arkle Finance, Bibby Financial Services and most recently Paragon Bank. Alfa Start has also provided critical value as a project accelerator to a string of notable auto and equipment lenders in the US.

With the new solution, Alfa brings its industry expertise and experience in fast implementations to operations throughout Europe.

"Alfa Start is for banks, captives and independents who want to be lean and invest pragmatically in a system that comes preloaded with a distilled best-practice setup, rather than recreating their existing processes and configuration from scratch. But there’s still plenty of room to weave in your own DNA, and hold on to that differentiating factor.

"As we’ve done successfully in the UK and US, this new flavour of Alfa Start brings the power of Alfa Systems to a wider range of providers, offering an essential project accelerator that reduces cost and helps you gain a competitive edge."

"A lot of providers have a need to modernize their tech stack, and look at improving their businesses, and Alfa Systems is the industry gold standard. With Alfa Start we've been able to implement Alfa Systems rapidly and cost-effectively. Thanks to the automation now available, our teams spend more time delivering value for our clients and business partners."

Alfa Start for European Asset Finance provides local languages and currencies, accounting standards and built-in bank reports; as well as integrations for e-signature, single sign-on, SEPA payments and more; and eliminates infrastructure overheads through proactively managed, single-tenant SaaS.

Alfa launches new project accelerator for European asset finance

Cracking the code of smarter funding automation | Audience: US auto lenders

Building true automation into the auto lending takes a smart ecosystem of solutions using the latest innovations.

Cracking the code of smarter funding automation

Building true automation into the auto lending contract funding process is a balancing act. You need to onboard contracts cheaply and quickly, nurture dealer relationships, and accommodate changing customer needs, all while staying fully compliant as fraudsters grow more sophisticated.

Like many complex tech challenges, solving this one takes a smart ecosystem of solutions using the latest innovations. Those who invest in these technologies give themselves a vital edge that can see funding times shrink from days to just minutes. And a smooth, fast experience builds lasting loyalty with both dealers and customers.

Combining native functionality with ecosystem orchestration to achieve enhanced automation and efficiency, Alfa Systems 6 delivers next-level performance.

At Alfa, investment is innovation-driven, in areas such as intelligent document processing and other AI, business rules, internal and external workflow, and instantly composable workflow screens. In this way we make zero-touch funding the rule, rather than the exception.


The funding process can be slow, prone to errors, and resource-intensive. Zero-touch funding is essential for achieving speed, accuracy, and scalability in auto finance operations.

1. Layering IDP over e-contracting and e-signature

Well established in our industry, electronic contracting and signatures remove some of the complexities of paper contracting, providing considerable funding automation benefits. And if issues pop up, the feedback loop is quicker.

The next step is to layer IDP (intelligent document processing), for handling ancillary documents, onto this process. Thanks to AI, you can now extract data automatically from after-market forms, stipulations, and other supporting materials. Combining this with a powerful business rules engine can significantly reduce manual processing.

2. Versatile validation, and crystal-clear dealer resolution

This sort of multifaceted contract validation requires a wide range of sophisticated business rules to accommodate specific tolerances and granular edge cases. That validation needs to be run, authored, and audited consistently – and there’s a need for a regular ‘human in the loop’ to make sure the data shown is the same as what is in the document. Crucially, validation needs to be easy to configure and update, so you can adapt to evolving market dynamics.

When there are failures, being able to select which are communicated systematically to the dealer, and which are communicated actively, enables a quick and productive feedback loop.

3. Real-time dealer payments, and a quick transition to servicing

Following verification of contracts, your dealers want to know instantly when funding is in place.

They want to be paid, and have those contracts transfer automatically into servicing, without suffering the clunk of complex, error-prone file-based procedures.

Taking the pain out of manual touchpoints

Manual touchpoints are inevitable, and are usually needed for risk and compliance reasons, or to give your dealer networks the flexibility they deserve. But there are ways to minimize the pain.

1. Effective orchestration of people and procedures

In just the same way that you need flexibility over how issues are returned to dealers systematically, taking control over how manual resolutions are tackled is critical.

Intelligent routing sits at the heart of this. Consider a contract that has thrown up multiple issues and now requires input from both credit and funding. To avoid losing vital time reworking that contract, it could be smarter to route to credit first.

2. The right information, at the right time

Another important opportunity is ensuring pertinent information is displayed for the audience.

Users require issues to be presented clearly and consistently. They want to be able to work quickly without missing key information. So when they need to resolve an issue, they don’t want to go hunting for the data they need. That data can be different things, depending on the issue type, the user group or the product type.

Where information is needed from the customer, lenders can typically request this through the dealer. But there are efficiencies to be gained by going directly to the end customer.

Being able to orchestrate such engagement without adding significant manual time to the process is another opportunity on the path towards meaningful funding automation.

LLMs (large language models) provide a low-cost, user-accessible way of collecting key information and stipulations, and can be combined with advanced neural networks capable of uncovering customer patterns that flag risk.

4. The role of data in making manual touchpoints automated

Whatever technologies you choose to deploy, taking a data-driven approach to efficiency and automation gains is key to performing accurate cost-benefit analysis.

Detailed, real-time insights help you direct change management and unlock the next focus for investment, based on evidence.

Alfa’s experience delivering efficient operations to complex top-tier lenders means we’re well placed to guide you in achieving your goals around originations, servicing, collections, and beyond. We’re ready and waiting when the time is right.

VIEWPOINT: Making zero-touch funding a reality

Alfa: e-invoicing, a regulation too far or a pathway to efficiency?

Emily and John discuss the regulatory environment around e-invoicing and why despite the uncertainty in regulation business leaders must understand the potential benefits this can bring.

AFC Podcast: Emily Hammond & John Murray

Investors in People is delighted to award Alfa, the makers of Alfa Systems - the first-choice platform for asset finance companies worldwide - We invest in people, gold accreditation.

Alfa retains the 'We invest in people' gold accreditation

Gold accreditation means that you’ve got the policies in place but more than that, it means everyone, from CEO to apprentice, takes ownership for making them come to life.

Alfa has over 500 employees globally and the organization places great importance on their unique culture, which they describe as diverse, innovative, and inclusive.

"We’d like to congratulate Alfa on its Gold accreditation. 'We invest in people' is a fantastic effort for any organization, and places Alfa in fine company with a host of organizations that understand the value of people."

"We’re delighted to see we’ve retained our gold status and have also seen a marked improvement in our scores across the board. Investors in People have cemented our confidence in our fantastic culture and in the inclusive workplace we try so hard to foster."

We believe that the success of your organization begins and ends with people. If we make work better for everyone, we make work better for every organization. And if we do that… we make society stronger, healthier and happier.

Join our community of 15,000 organizations across 75 countries and make work better.

Most of us will spend around 80,000 hours at work in our lifetimes.

For something that takes up that much of our time, we think people deserve to get more out of it than just a regular pay check. 

That's why we've already helped more than 11 million people across 75 countries to make work better.

And you know what, we’re just getting started…

We’re a community interest company, which means we put our purpose before our profits. That means everything we do and every direction we take is done to make work better.

Organizations that meet the 'We invest in people' framework are proud to display their accreditation to the world.

Because they understand that it’s people that make work better.

Press Release: Alfa retains the 'We invest in people' gold accreditation

ZEB: The future of Captives, do they still make sense?

As it becomes more expensive to run a captive we discuss is it time to look again, and if captives still make sense.

As it becomes more expensive to run a captive we discuss is it time to look again, and if captives still make sense. After all there is no single model or solution that applies to all companies.

AFC Podcast: Klaus Strenge & Kerttu Alpass

InnoVent: Breaking new ground and expanding asset finance into Africa and the Middle East

The conversation explores the opportunities and challenges of expanding asset finance into these less familiar regions.

The conversation explores the opportunities and challenges of expanding asset finance into these less familiar regions. Kumbula shares the story behind InnoVent’s founding in 2003, driven by a desire to bring transparency and customer value to operating leases. He discusses the company’s growth, including its innovative approach to asset lifecycle management and its remarketing business, Qrent, which has expanded to the UK under the brand "Second Life."

Kumbula also details InnoVent’s recent expansion into the Middle East, highlighting regulatory hurdles, cultural differences, and strong market demand for full-service operating lease solutions. With partnerships in place with HP, Lenovo, and Cisco, InnoVent is positioning itself as a trusted partner for companies looking to enter both African and GCC markets.

AFC Podcast: Bengayi Kumbula

The gender pay gap is the measure of the difference in average pay between all men and women across an organisation, regardless of their role, level, length of service or location and any other differentiating factors. The gender pay gap is reported as a mean average and median average (midpoint) figure. The gender pay gap is different to the concept of equal pay which requires that women and men are paid the same for doing the same job and it is unlawful to pay people unequally on the basis of whether they are a man or a woman.

The analysis is based on data as at 5th April of each year and this report reflects the UK data collected and analysed as of 5 April 2024.

Gender Pay Gap Report 2024

We’re delighted to share our dedicated and comprehensive Sustainability Progress Report for 2024. This publication highlights the variety of initiatives driving impact across People, Planet and Product at Alfa.

"The report is testament to our unwavering commitment to doing what’s right. From fostering an equitable workplace to reducing carbon emissions and driving sustainable innovation, it showcases the depth and breadth of our global efforts. We don’t just talk about our values at Alfa —we live them. Sustainability isn’t just a goal; it’s who we are."

2024_SustainabilityReport_1650x1080px FINAL 14 Apr 25.pdf

Alfa’s 2024 Sustainability Progress Report

The MD of Vamos tackles AI: is there hype or is there fatigue?

Richard Huston addresses AI hype vs. reality, emphasising that AI is a tool, not a replacement for human expertise.

Richard Huston is the MD of VAMOS. VAMOS focuses on applied AI, helping businesses integrate AI for efficiency and decision-making.

Richard Huston addresses AI hype vs. reality, emphasising that AI is a tool, not a replacement for human expertise. Key applications include automating customer communications and reducing administrative workload but while still ensuring human oversight, so reducing time rather than replacing the human element.

Concerns around AI hallucinations are discussed including retrieval-augmented generation (RAG), and AI’s job impact is framed as augmentation, not elimination. He also discusses AI’s environmental footprint, arguing its benefits outweigh costs.

The episode highlights AI’s increasing accessibility, with open-source models like DeepSeek lowering costs. Richard Huston encourages experimenting with AI tools like Claude and ChatGPT.

AFC Podcast: Richard Huston

Econocom’s value proposition for captives, full lifecycle capabilities plus entrepreneurial independence

Richard talks with Mathilde Saint-Pol Cousteix who is the Managing Director of Econocom France

In this episode host Richard talks with Mathilde Saint-Pol Cousteix who is the Managing Director of Econocom France (Technology Management and Financing). Richard and Mathilde discuss opportunities for increased partnerships between captives and financial institutions. The conversation also touched on innovation at Econocom in particular the sales agency model that they have introduced to the market.

AFC Podcast: Mathilde Saint-Pol Cousteix

Alfa has reported its audited results for the 12 months ended 31 December 2024.

Record-Breaking 2024 Results for Alfa

Alfa last week reported its audited results for the 12 months ended 31 December 2024. The year marked significant achievements across financial performance, strategic growth and innovation.

Underscoring strong market endorsement and expanding its customer base, Alfa secured eight new customer wins and retains a robust late-stage pipeline. There were a total of 26 go-lives or upgrades during the year.

Accelerating Alfa’s transition to a SaaS subscription model, customers who run Alfa Systems on Alfa Cloud’s secure, flexible and highly available single-tenant environments now total 21.

In the area of product innovation, the successful launch of Alfa Systems 6 highlighted ongoing investment in cutting-edge technology and product enhancement. Meanwhile, Alfa demonstrated its commitment to sustainable business practices by joining the United Nations Global Compact.

“2024 was a breakthrough year for Alfa marked by the successful launch of Alfa Systems 6 and a record number of wins across our major markets. To meet the strong demand for our products, we have continued to recruit high-quality people, ending the year with more than 500 people working for Alfa.

“We continue to invest in Alfa Systems 6 to expand our functional and technical lead over our competition, while continuing to deliver reliably for our customers.

“The year’s operational execution and strong sales and financial performance, along with our very healthy pipeline, has reinforced the strength of our strategy and we remain confident in the outlook for the business.”

Further information, including financials, is available from alfasystems.com/en-eu/investors.

Alfa Announces Record-Breaking 2024 Results

Asset Finance Connect (AFC) has announced a new industry podcast for a European equipment finance audience. 

Alfa sponsors new AFC podcast

This new podcast, sponsored by Alfa, will serve as a dedicated platform for industry professionals to engage with thought leaders in the European equipment finance sector. Listen now at Asset Finance Connect, or find it on all the normal podcast platforms.

Hosted by Richard O’Donohue, Head of Content (Manufacturer Captives) at Asset Finance Connect and former Head of Partnerships at Dell Financial Services, Ireland, the podcast promises to be a valuable resource for navigating the evolving industry landscape in 2025.

Each episode will feature insightful interviews with leading figures in European equipment finance, providing a deep dive into the opportunities and challenges facing manufacturer captives, banks, and independent finance providers.

Discussions will encompass key industry trends shaping European equipment finance, practical insights from Europe’s leading finance practitioners, and the impact of technology and regulatory changes in 2025.

In the first episode, host Richard talks with Mathilde Saint-Pol Cousteix, Managing Director of Econocom France (Technology Management and Financing).

Richard and Mathilde discuss opportunities for increased partnerships between captives and financial institutions. The conversation also touches on innovation at Econocom, in particular the sales agency model that they have introduced to the market. 

As AFC builds up to the AFC European Leaders’ Summit on May 15, Richard O’Donohue will focus on a key topic in each episode – sustainability, technology, regulation, profitability and innovation – setting the stage for deeper discussions at the Summit. The podcasts will act as a precursor to the discussions at the Leaders’ Summit. Plus, stay tuned for an exciting live podcast recording at the Summit itself!

Be the first to hear about new episodes by subscribing now. Don’t miss out on the latest insights from Europe’s top finance leaders!

Asset Finance Connect launches Alfa-sponsored podcast

Alfa has been named by the Monitor as a Best Company in the Innovation category.

A 2025 Monitor Best Company in Innovation

For the second year in a row, Alfa has been named by the Monitor as a Best Company in the Innovation category.

The special issue celebrates the US equipment finance industry's Best Companies that have led through best practices, fostering a culture of innovation to enhance efficiency and the customer experience.

Winners are named in the categories of innovation, culture, leadership, DEI and community outreach. Best Companies also recognizes companies that have reached significant milestones, such as Alfa, who celebrates 35 years in business this year.

"Alfa is revolutionizing the equipment finance industry with cutting-edge technology and a relentless commitment to innovation. From the launch of Alfa Systems 6 to the game-changing AskThea chatbot, discover how Alfa is empowering teams, enhancing efficiency and shaping the future of asset finance."

This is the second annual Best Companies Issue released by the Monitor, with Alfa also recognized in 2024 for its innovation process. Prior to its Best Companies process, the magazine recognized the Most Innovative Companies, in which Alfa was named in 2021, 2022 and 2023.

Since its launch in 1974, the Monitor has become the leading independent trade publication in the US equipment finance and leasing industry. Each issue includes timely articles authored by industry specialists and regular features.

Read the entire article ALFA: Innovating Ideas Through Ingenuity or enjoy the digital flipbook version (page 39).

Alfa named a 2025 Monitor Best Company in Innovation

At the Asset Finance Connect European Unconference, sponsored by Alfa, Richard Knubben, Director General of Leaseurope, shared insights into the political and economic environment shaping Europe’s future.

Richard Knubben of Leaseurope's perspective on the political and economic environment shaping Europe’s future at the Asset Finance Connect Unconference

AFC European Equipment and Auto Finance Unconference

Speaking with David Betteley, AFC head of content, Knubben explored the aftermath of 2024’s seismic changes and the opportunities ahead for leasing companies (leasecos) and technology providers.

Political shifts and economic implications

Knubben described 2024 as a “shockwave” year for Europe, paralleling the political upheaval in the United States. The June European Parliament elections significantly altered the political landscape, with green and socialist parties suffering major losses. Votes shifted to more extreme ends of the political spectrum, leaving the European People’s Party (EPP) as the dominant stabiliser.

This new political reality poses challenges for the European Commission as it develops its 2025 agenda. Ursula von der Leyen’s leadership will likely face pressure to recalibrate the Green Deal amidst growing scepticism and calls for reduced regulation.

“There is a clear disconnect between the European Commission’s vision and the shifting priorities of the Parliament and Council,” Knubben noted. Leaseurope is closely monitoring these changes to anticipate their impact on regulatory frameworks.

Sustainability and ESG reporting: a key battleground

Competitiveness concerns, particularly with the United States, have driven the European Commission to propose a comprehensive package to simplify sustainability regulations. This initiative aims to address overlaps in the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CS3D), and EU Taxonomy.

However, the path forward remains uncertain. The European Parliament has called for significant simplification, aligning ESG reporting requirements with the more relaxed standards in the US. Knubben sees this as a pivotal opportunity for leasecos and tech companies.

“ESG reporting, particularly Scope 3 emissions, is a complex challenge but also an opportunity,” Knubben emphasised. Leasing companies, as asset specialists, are uniquely positioned to provide critical data and bespoke reporting services. Businesses already seek support from leasecos, giving those with robust data and analytics capabilities a competitive edge.

“ESG reporting, particularly Scope 3 emissions, is a complex challenge but also an opportunity.”

Social leasing emerged as a contentious topic in 2024. France’s experiment with subsidized leasing of electric vehicles (EVs) for low-income families, while well-intentioned, proved financially unsustainable.

Knubben suggested a more viable path might be enhancing the second-hand EV market to make these vehicles accessible and attractive. Germany’s political discourse includes proposals for social leasing, with funding potentially coming from the European Social Climate Fund. However, questions about sustainability and risk remain unanswered.

Extending social leasing to other green assets, such as heat pumps and solar panels, introduces additional complexities. Unlike EVs, these assets are immovable, making recovery in cases of default more challenging. Legislative innovations and government guarantees would be essential but could prove costly and difficult to implement.

Shifting business models in asset finance

The leasing industry is grappling with evolving business models, driven by consumer demand for flexibility. Knubben highlighted a growing trend toward shorter-term contracts, particularly among younger generations. However, this flexibility comes at a cost.

For EVs, however, unstable residual values (RVs) are prompting leasecos to encourage longer-term contracts in the business-to-business (B2B) segment. In the business-to-consumer (B2C) space, subscription models and pay-per-use arrangements are gaining traction, although they bring higher costs.

“The market is heading in both directions—longer contracts for some assets, shorter for others,” Knubben observed. The challenge lies in balancing flexibility with financial stability, particularly in an era of rapid technological change.

The big question is: has the political instability in 2024 set the scene for regulatory pragmatism to break out in 2025?

“Whoever has the data and analysis will have the competitive edge.” 

Looking ahead: opportunities and challenges in 2025

As Europe navigates this period of transformation, the European equipment finance industry and Leaseurope is focused on three key areas:

ESG reporting simplification: Despite anticipated simplifications, the industry will need to adapt to new requirements and timelines. Tech companies and leasecos have an opportunity to lead by providing essential data and expertise.

Subsidized leasing: Potential extension of social leasing programmes and the enhancement of government-funded subsidies or favourable policies for green assets, such as EVs and electrically powered machinery.

Innovative business models: The demand for flexible leasing solutions and second-cycle leasing presents opportunities for innovation, particularly in the consumer market.

While uncertainties persist, Knubben struck an optimistic tone. “Whoever has the data and analysis will have the competitive edge,” he concluded. The leasing industry stands at the nexus of change, poised to turn challenges into opportunities in the years ahead.

This article was published by Asset Finance Connect in January 2025. Reproduced by permission of the publisher.

You can read more about the European Unconference themes and discussions in the below follow-up Asset Finance Connect articles:

Opportunities and challenges in 2025 for equipment finance

Alfa Start

Alfa and the UN Sustainable Development Goals

Alfa Systems 6

Gold-Accredited Alfa Makes Top 20 in Investors in People

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