What The Next Generation Wants and Why The Equipment Finance Industry Must Listen

What happens when more than 40 rising equipment finance professionals get candid about the industry’s future? You get a clear-eyed, energizing look at what needs to change, what’s working and where this industry is headed. The voices in Monitor’s 2025 NextGen cohort aren’t just looking ahead — they’re ready to lead the charge.

The Biggest Challenges Facing Equipment Finance Today

The industry sits at the crossroads of technological disruption, economic volatility and generational turnover. NextGen leaders are watching closely and weighing in with sharp observations and urgency.

Economic uncertainty was the most cited challenge. Timothy Amero Jr., Senior Vice President at BriteCap Financial, says, “The biggest challenge is navigating the impact of economic uncertainty, fluctuating interest rates, inflation and regulations that present challenges for borrowers and lenders.” Others echoed that interest rates volatility continues to freeze or slow deals, while tighter regulations are altering lender strategies.

Shane Moody of Arvest Equipment Finance flags rising delinquencies and charge-offs nationwide. “Due to these obstacles, credit standards have continued to tighten,” he explains.

Ben Bakke of Capteris Capital pointed to a less visible but equally dangerous threat: a looming talent vacuum. “In my opinion, the biggest challenge facing equipment finance today is a void of young, knowledgeable originators, as many of the experienced professionals have or soon will retire,” he says. “Because equipment finance relies heavily on relationships, industry knowledge and the ability to be a trusted advisor, it is crucial that the industry develop young talent now.”

That warning was repeated. James Eulenstein at Key Equipment Finance underscored the same issue from a hiring perspective. “We must improve mentoring and delegate responsibilities effectively. We have a compelling story to tell; we just need the right opportunities and platforms to share it.”

Beyond talent and macroeconomics, technology inertia is testing the industry’s ability to modernize. Alex Bryson of LTi Technology Solutions noted that many institutions are still constrained by legacy platforms. “Outdated systems can limit efficiency and hinder the ability to meet rising expectations for real-time, personalized service,” he says. “The companies that adapt quickly will lead.”

Others focused on trust and perception as emerging challenges. Félix Beauregard of Mitsubishi HC Capital Canada warned of fraud risks amid digital acceleration. “As digitalization accelerates, the risk of fraud has never been more prevalent,” he says. “Organizations must find the perfect balance between simplifying the financing process and ensuring stringent security measures are in place.

Some, like Christian Nichols at LeasePoint Funding Group, point to public skepticism around financing itself as a reputational issue. “Many people still view lending as a risky or ‘gray area’ activity, often associated with high interest rates and predatory practices,” he says. “However, equipment financing is a valuable tool for businesses of all sizes. We need to change that perception.”

Brittany Hamilton at Alfa added another layer: compliance complexity. “One of the biggest challenges facing the equipment finance industry is regulatory and compliance pressure. New regulations, tax changes and lawsuits all demand enormous resources to manage. Automation and AI can help, but the transition is costly.”

Finally, the challenge of customer expectations is escalating. Zack Miller from QuickFi says the bar is rising fast. “Embedded finance is changing customer behavior. Borrowers now expect instant, self-service options. Traditional providers who can’t meet those expectations will fall behind.”

Trends and Innovations that will Shape the Next Five Years

If there’s a single theme uniting the responses from Monitor’s NextGen leaders, it’s this: the next five years in equipment finance will be defined by technology, agility and customer-centric thinking. The industry is shifting quickly.

Unsurprisingly, artificial intelligence was the most cited innovation. From automating underwriting to transforming customer service, NextGen professionals see AI not as a far-off concept but as a rapidly accelerating reality. Noah Beh of Auxilior says, “AI is undoubtedly at the forefront of industry innovation. From streamlining underwriting to enhancing customer interactions, AI-driven solutions have the potential to reshape how we operate.”

Patrick Molony at Wells Fargo sees AI as a competitive necessity: “There is so much untapped data in the public sphere that could be harnessed to improve our fraud prevention processes and model-enabled decision making.” He predicts increased automation of credit scoring and a higher volume of auto-decisioning in deals.

Miller emphasized the transformative potential of embedded lending — real-time, point-of-sale finance embedded directly into the equipment purchase process. “Embedded lending is both the biggest challenge and strategic opportunity for equipment finance companies,” he says. “The shift from a traditional sales model to a borrower self-service model is massive. It requires changes in technology, operations and culture.”

Several leaders highlighted pay-per-use and Equipment-as-a-Service (EaaS) as next-wave disruptors. Félix Beauregard explains, “The shift from a ‘buy and hold’ mindset to a ‘payfor-usage’ model is becoming increasingly prevalent. Supporting dealers and rental companies means providing flexible financing that aligns with uncertain market conditions.”

Shotaro Matsuyama agrees, forecasting the rise of FMV (fair market value) leases in emerging sectors like AI and robotics. “FMV leases will support the future of the industry, especially in an inflationary environment. But the pace of innovation makes them more complex — we need specialized knowledge to manage equipment that depreciates quickly.”

Others, like Alex Jones at Solifi, point to IoT and data-driven insights as enablers for usage-based financing. “In the future, by utilizing AI and IoT sensors to accurately understand the usage status of equipment, it will become easier to propose pay-per-use models to customers,” he says.

Beyond usage models, the fusion of automation and data analytics is being seen as a powerful way to reinvent internal processes. Aaron Jackson at Tamarack Technology shares how his team has built a syndication automation tool to replace spreadsheets and manual reports. “This eliminates time-consuming manual tasks and reduces errors. It’s transforming how we work,” he explains.

In marketing and sales, leaders are looking at generative AI to personalize outreach and predict customer behavior. Cori Drake of AP Equipment Financing notes, “With AI, companies will be able to streamline processes, reach customers at key points in their journey, and do outreach at a scale that humans simply aren’t capable of.”

For some, the most impactful innovation isn’t a specific tool — it’s a mindset. Jennifer Bello of DLL says, “While change is constant, the next five years will be the most rapid change the world has seen in decades. Gen-AI is fundamentally shifting how businesses operate. Understanding how to utilize it for problem solving will become essential.”

In the same spirit, Andrew Berkovitz challenges companies to adapt their underwriting approaches to keep pace. “We need to transition from manual underwrites to AI-driven or tech-centric underwrites,” he says. “Firms who don’t keep up will be left behind.”

Not every leader emphasizes tech. Several point to new customer expectations as equally disruptive. “The real shift is in how people expect to be treated,” Ralph Cioffi of PEAC Solutions says. “Trust, relationships and a hospitality mindset are what I believe are the trends in all businesses moving forward.”

Brissa Chavez Mendoza notes that modernizing internal workflows is also a trend worth watching: “The rapid evolution of technology can streamline operations, but many companies are still reinventing the wheel with outdated systems.”

Jennifer Bello frames it this way: “Being prepared for what’s next will be the difference between falling behind or becoming an industry leader.”

So, what will shape the next five years? AI, yes — but not alone. Automation, embedded lending, sustainability, EaaS, data transparency and changing expectations around speed and service will all converge to redefine equipment finance. These leaders aren’t just predicting those changes — they’re building the blueprint.

How the Industry Can Attract and Retain More Young Talent

If there’s one thing the NextGen leaders agree on, it’s this: attracting and retaining young talent isn’t about ping-pong tables or flashy perks — it’s about purpose, transparency, development and trust.

Several respondents say the biggest hurdle to bringing in fresh talent is visibility. Many students and early-career professionals don’t know equipment finance exists.

“I stumbled into the industry,” Cori Drake of AP Equipment Financing says. “Most people in this space didn’t study it or plan for it. Awareness is key.”

Brittany Hamilton at Alfa echoed the importance of outreach. “There could be enhanced awareness for young people through hiring and engaging with students at universities and those early in their careers at career fairs, networking events, and speaking engagements,” she says. “Rotational programs helped me decide this was the right path.”

Cioffi suggests casting a wider net — and looking in unexpected places. “I think the industry would be well served by recruiting people from the hospitality world,” he says. “Find the kids who know how to hustle and naturally understand people.”

Craig Kern at Stearns Bank points to the untapped potential of mentorship. “Leaning into the mentorship capabilities of industry veterans, particularly those in key leadership roles, could make an incredible impact on the next crop of young talent,” he says. The best mentors, he adds, “embrace innovation and help young professionals learn how the business really works.”

Others stressed the importance of internal culture — one that encourages contribution and recognizes the value of new ideas. Noah Beh explains it this way: “The key to attracting and retaining young talent is fostering a culture that values fresh perspectives and invests in development. Too often, companies hesitate to hire individuals without direct industry experience. That has to change.”

Linzey Brunton at GreatAmerica Financial Services agrees: “We must meet young professionals where they are and set a vision for what is possible. Highlight the diverse roles and the impact they can make. Connect their purpose with the industry’s mission.”

Clear growth paths and ongoing learning were repeated across responses. Bello puts it bluntly: “Create the space and opportunity, and the talent will follow.” Molony expands: “A roadmap of future roles and opportunities allows young professionals to discover where their skills are best aligned — and increases their engagement.”

Jackson adds a modern lens: “Young professionals want careers that offer innovation, purpose and flexibility. By embracing cutting-edge technology, fostering a culture of continuous learning and providing career growth opportunities, we can better appeal to the next generation.”

Trust and inclusivity are also central themes. “Young professionals want to work in an environment where they feel respected and valued,” Christian Nichols of Leasepoint Funding Group says. “Building a culture that emphasizes trust, belonging, and growth will ensure they’re motivated to stay and thrive.”

That includes being willing to break with tradition. Madison Brown argues for more progressive workplace norms: “A qualified candidate should not be denied a position simply because they have a nose ring or a visible tattoo,” she says. “Of course there’s a line, but self-expression and professionalism can absolutely coexist.”

Finally, leaders said that to keep young people engaged, the work must feel meaningful. Austin Law, whose company supports medical technology adoption, said it best: “We’re not just providing financial solutions—we’re empowering healthcare providers to access products that make a meaningful impact on their patients’ lives.”

In other words, the key to recruiting and keeping young talent isn’t about changing who the industry is — it’s about communicating what it really offers: growth, impact and purpose.

A Blueprint for the Future

The voices of the Monitor 2025 NextGen leaders are more than reflections of where the industry stands today — they’re a blueprint for where it’s going tomorrow.

If there’s one consistent message, it’s this: the status quo won’t cut it anymore. This generation of professionals isn’t just looking for better technology or clearer workflows — they want purpose-driven leadership, inclusive workplaces and bold strategies that meet today’s realities.

They are calling on the industry to:

• Embrace AI and automation not just to cut costs, but to elevate customer experience.

• Expand pay-per-use and EaaS models to better reflect how customers use equipment.

• Recruit talent from outside the usual pipelines and prioritize mentorship from day one.

• Tell a better story about what equipment finance really is — and why it matters.

• Break down silos, modernize operations, and partner more freely across organizations.

This is a group that doesn’t want to wait 10 years to make a difference. They are ready now, and they’re already proving their value. They are originators, analysts, marketers, technologists, strategists and operators. And they’re speaking with one voice: “Let us help shape what’s next.”

What they’re asking for isn’t radical — it’s rational. And it reflects what customers, employees and markets are already demanding: faster processes, smarter systems, more inclusion, greater purpose and a willingness to change.

If the equipment finance industry listens — and acts — it won’t just retain its rising stars. It will thrive. •

Rita E. Garwood is Editor in Chief of Monitor.