Paperless Transactions: New Study to Help Lessors Understand the Impacts, Challenges and Opportunities
Posted 06/02/06
Most business leaders will agree that within the next three to five years, paperless transactions will become the norm within most financial industries. In order to help the leasing industry enter this new realm, the Foundation has commissioned a study to assist industry members in understanding the impact, challenges and opportunities of conducting business within a paperless environment. Few studies have such far-reaching implications for every industry participant as this Foundation research project. The shift to paperless will dramatically change the way business is being conducted, day to day, regardless of the lessor’s niche, company size or type or market.
“This is a very important, timely subject,” said Michael A. Leichtling, Troutman Sanders LLP and Foundation Vice Chairman. “Other financial industries are ahead of the leasing industry in adopting a paperless environment, and even the law (federal and state statutes) have recognized that paperless transactions are the wave of the future. This paper will provide information that the industry has been lacking to date.” The study, expected to be available later this year, will include an analysis of the decisions required and the process involved in adopting a paperless contract process. A look at related financial services industries such as the mortgage industry and the auto financing industry, which have already implemented paperless business processes, will provide insight into how the leasing industry may embrace the concept. The paper also will provide a current-state model based on a generalized “use” case assessment of the industry; a risk-reward assessment, including the most common risks identified with recommended strategies for risk avoidance and mitigation; and a typical implementation strategy based on the researchers’ own practical experience and the studied experience of others.
Additionally, the potential market reaction will be included, including such stakeholders as the rating agencies, analysts, investors, lenders, customers, and users. Legal aspects also will be covered in the paper, such as the contractual enforceability and records retention issues, the relevant laws and how a paperless contractual process can work if the contracts will be transferred, used as collateral or securitized. Lastly, the study will cover the forecast for industry acceptance, including present trends and significant challenges to implementations.
The study will be conducted by Buckley Kolar LLP, a national practice focused on serving companies and trade associations in the financial services industry. They are recognized as leaders in the developing field of the electronic delivery of financial services. They advise clients, including trade associations on the use of electronic signatures and records (including transferable records and electronic chattel paper), data security and record management. Buckley Kolar attorneys helped draft the federal Electronic Signatures in Global and National Commerce Act (“ESIGN”), are at the forefront of developing standards in these fields (see www.spers.org) and have authored the principal treatise, The Law of Electronic Signatures and Records (GlasserLegalWorks 2004).
“The researchers of this paper have vast experience,” added Leichtling. “We are fortunate that the researchers of this study have been in the forefront of the development of the paperless concept in other industries.” Watch for the study’s debut in future issues of Forecast or on www.leasefoundation.org
Sites of Reference:
http://www.store.leasefoundation.org/
CONTACT:
Lisa A. Levine, CAE
Equipment Leasing and Finance Foundation
Phone Number: 703-527-8655
Fax Number: 703-465-7488
E-mail: llevine@elamail.com
