The Equipment Leasing/Asset Finance BenchMark Program

Bi-annually, a select group of banks and finance organizations participate in BenchMark's Wholesale BenchMark Program. These studies are conducted separately in major European countries. The purpose is to garner as much information about how your operation compares to your competitors, as well as uncover any trends in the industry and help you learn from other's mistakes and successes.

Areas We BenchMark
As we analyze the following areas (core processes), you'll see how you're alike and different from your peers with respect to: workflows, technology utilization, department structuring, and operating policies.

Acquisition: Building up of and servicing of business relations to new and existing customers by visiting the customer and/or phone or written contact. This includes the preparation of the contacting by collecting information about the customer, traveling to customer visits, and the time of the visit itself.

Customer Set-Up: Setting up of the master data for an interested party or new customer, either in paper files or in the system.

Contract Processing: All activities starting with the receipt of a demand for a specific proposal for one or several capital goods and ending with the transmission of the proposal. This includes the examination of the existing information, the creation of proposals (manually or by system), and the transmission of the proposal to the customer by phone, fax, letter or email if necessary, it also includes follow up negotiations and sending out of leasing applications.

Credit Evaluation: All activities in direct connection with the approval or rejection of a credit line, a leasing application, or a preliminary inquiry concerning a specific deal. This includes the evaluation of existing data, requesting additional information, the credit evaluation, and communication with the customer.

Contract Activating and Supplier Payment: All activities in connection with the implementation of the contract and the activation of the capital good. This includes the payment of the supplier, demanding the first monthly installment, and the payment of a commission to an external agent.

Archive: Establishing physical or electronic files for newly executed contracts and obtaining and fulfilling requests for documents from other departments.

Payment Processing: Receipt of regular payments (Interest, repayment of capital, fees) and allocation to the respective contracts.

Portfolio Management: All activities associated with the automatic periodic review of an existing customer. The activities usually involve re-evaluation of a company based on documentation as defined by the participant, possible request for additional information and coming to a conclusion in line with the participant's company policies.

Customer Service: Encompasses handling of all requests for information or action on open, active accounts, whether by phone, mail or e-mail. Included are also research activities to fulfill the request of the customer.

Termination Processing: This process consists of activities required near or at lease maturity as well as activities at or after pay-off. The activities include telephone calls to the customer and/or dealer to determine who will ultimately purchase the goods of a lease or finance option contract. It also encompasses those activities tied to final settlement of customers. These activities include work on early settlements too.

Remarketing: This process consists of the activities associated with the sale of assets that the participant has taken into possession through either end of lease term or repossession. Assets are sold through different channels, depending on their nature.

Collections: The activities associated with pursuing payment of delinquent balances prior to deciding to terminate a contract. Generally the customer is contacted in an attempt to make the account current.

Recovery: Includes those activities on accounts that have progressed beyond the delinquency stage handled by collections. These accounts include those referred to legal counsel for resolution as well as those accounts assigned to outside collection agencies.

For more information contact us at info@benchmarkinternational.com.

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Equipment Leasing / Asset Finance Services

In most instances, BenchMark utilizes a three-phase approach beginning with an assessment of the current situation that identifies the potential value associated with change. The second phase involves a client & BenchMark partnership to design a new target business environment. In the final phase BenchMark implements the determined changes in order to realize the desired client goal(s). Typical BenchMark engagements include the following:

Operational Performance Improvement

Operational support areas are critical to the financial success of every financial services company. Whether it's check processing, loan operations, call center, or collections, operations provide every organization the ability to deliver products and services to their customers. In most cases, these products and services are intended to differentiate their organization from their competition. Operational support areas are often characterized by the following: large numbers of regionalized or centralized staff, multi-shift operations, large fixed and variable expenses, and work environments driven by inconsistent volume on a daily, weekly, monthly and / or quarterly basis. These characteristics often present significant challenges when presented with management's objective to do their jobs "better, faster, cheaper!"

BenchMark is uniquely qualified to successfully address the client's critical objective of delivering products and services in the most efficient manner possible. Our assessment methodology ensures we understand how, why, when, where and who performs all operational functions because our design recommendations will be unique to your organization. We know there is no one best way of doing any process when you consider organizations' strategies, cultures, policies, technology, geography, and other factors.

Using BenchMark's proprietary database of operational performance metrics, we are able to objectively quantify and support process improvements that will directly impact an organization's overall efficiency and effectiveness. Each design is tailored to support our client's overall strategy and corporate culture, as well as work within potential policy, technology and geographic limitations yet still realize desired operational productivity (efficiency and effectiveness) improvements. Attaining these desired outcomes will then a positive impact on the cost to deliver specific products and services.

Service Level Improvement

Meeting or exceeding customers' (internal or external) expectations requires constant supervision, analysis, and development. With the ever-changing needs of the market, you cannot afford to overlook this critical management area. Providing excellent customer service is not free; however, knowing your customer, understanding their needs and expectations, and providing the products and services in an efficient and effective operational unit will ensure you provide cost-effective customer service.

BenchMark defines customer as "any entity a specific department or organization views as the recipient of that department or organization's product or service." For example, an underwriter's customer may be a branch employee (internal) or mortgage broker (external) and a branch manager's customer may be a new homeowner in his neighborhood (external). In either case, the organization's staff is charged with meeting or exceeding their customers' expectations.

Using critical information attained during the assessment phase of an engagement, we are able to understand what and why current service levels are being attained. We are then able, by relying on information from our proprietary database and the experience or our consultants, to objectively recommend cost-effective service level improvement opportunities.

It is a fact that operating systems and procedures are only as good as you continue to make them. Our track record in this area alone has provided more than enough proof to our clients that we can help.

Technology Optimization

"It's a poor musician that blames his instrument!" BenchMark views technology as an enabler, not as the primary driver of an efficient operation. Following our assessment methodology ensures we understand how, why, when, where and who performs all operational functions. Upon completion of the assessment, we will have identified all significant non-value added steps in your process. We will have also identified many processes that are performed manually or potentially not being performed at all. We will then know how the current processes and technology utilization are impacting service levels and operational efficiency.

By reviewing your existing technologies through this in-depth analysis of your current workflows and business processes, we can effectively and objectively determine if you are using your technology to its fullest potential.

Quite often, technology is purchased to automate current processes, whether current processes add value or not. Often, new problems are created because not enough is known about an organization's processes and procedures. BenchMark identifies these "value added" processes and then evaluates whether a client's current technology can automate and/or improve upon the current manual process. In other words, we identify how you can get the greatest benefit from current and / or new technology.

Operations Consolidation

Numerous mergers and acquisitions in the financial services sector, as well as routine cost-cutting exercises, have created a significant demand for operations consolidations in order to meet M&A and overall financial goals. Operations consolidations are complex, employee and customer-sensitive, high profile events. BenchMark is uniquely qualified to plan and successfully execute a consolidation plan because before we make a plan, we gather as much field information as we can and compare it against the best practices in the industry - all in order to create a consolidation plan that is best for you, and uniquely yours.

And when we've created that new central "core" environment, we then conduct a post-consolidation review to ensure all goals are being met, and that your new centralized operation is operating to your satisfaction.

Project / Change Management

Virtually every organization has an example of a project that exceeded its budget and / or timeline or did not achieve its desired results. Projects typically do not fail because of lack of effort, but because of poor planning and not strictly adhering to a proven, effective project management methodology. BenchMark has earned an excellent reputation for planning and executing on projects due to talented management and a closely followed, standardized project management methodology. BenchMark understands that tireless planning, effective and timely communication, and assigning accountability are critical components of a successfully completed project.

Running successful assessment, design and implementation projects requires adherence to strict enforced project management methodology. For that reason, when BenchMark manages a project, even when client staff are represented on the project team, all team members are expected to follow the methodology and are held accountable for responsible tasks. This consistency in process leads to successful results.

BenchMark has had success training clients on effective project management skills and methodology. However, we have more frequently been engaged to use our staff and project management knowledge to successful implement critically important projects on time, within budget, and meeting all project success measurements.

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