Cyber ​​attacks and other challenges in the leasing industry

Strengthening the Leasing Industry Against Cyber Attacks and Challenges with SaaS Solutions

Leasing companies today face economic uncertainties, stringent regulatory requirements, and the growing threat of cyber attacks. However, digitalization offers not only risks but also significant opportunities. Cloud-based software that covers all leasing company processes can help leverage these opportunities while enhancing protection against cyber threats.

Economic Uncertainties and Their Consequences

The leasing market, like many other sectors, is not immune to current economic uncertainties. Global crises and structural changes are prompting companies to rethink investments. Experts predict a significant decline in private equipment investments for 2024, continuing a downward trend observed since 2019. This impacts leasing companies with lower incoming orders and increased insolvency risks among customers.

Additionally, the shortage of skilled workers is becoming increasingly problematic, making it difficult to find qualified personnel to drive necessary digitalization.

Complex Regulations and Customer Requirements

The leasing industry faces increasingly strict regulations, such as the minimum requirements for risk management (MaRisk) and the Digital Operational Resilience Act (DORA). These regulations compel financial sector companies to revise processes and enhance security measures.

Note from our editors: We have published a separate blog post about DORA. Read more here.

In addition to increasing regulation, customer demands are also rising, with a growing need for flexible leasing models and innovative services. Leasing companies must make processes more efficient and offer additional services to ensure long-term profitability. Digital transformation is key to success.

Cyber Attacks: Protecting Against a Growing Threat

The digital setup can be both a blessing and a curse. As digitalization progresses, the threat of cyber attacks increases. According to the Bitkom study “Economic Protection 2024,” 81% of companies have experienced cyber attacks, including:

• Theft of business data
• Sabotage of information and production systems
• Spying on communication via email, messenger, video call, etc.

Successful attacks can incapacitate companies for days or weeks and damage customer trust. Leasing companies must prepare against these threats with robust IT infrastructures and comprehensive security measures.

Software as a Service (SaaS) as the Solution

Leasing companies can, for example, rely on cloud-based software-as-a-service solutions that cover all business processes, automate processes and reduce risks. These applications are delivered over the Internet and managed externally by a provider. They offer key advantages in cyber protection:

• By outsourcing the software, the responsibility for protecting against cyber attacks lies with the provider. This assumes risks and ensures regular updates and maintenance.
• Leasing companies remain able to act even if their internal IT systems are affected.
• Software that covers all business areas reduces attack surfaces and ensures uniform security standards that are continuously improved by an experienced provider.

Beyond Cyber Protection

Customizable SaaS solutions offer numerous benefits:

• Seamless integration of all business areas, from point of sale to accounting.
• Flexibility to quickly respond to market changes and new customer needs.
• Automation of routine tasks like contract management and invoice processing, saving resources and reducing errors.
• A central point of contact simplifies software implementation, operation, and maintenance.
• Solutions like LeasySOFT, developed in the banking environment, already comply with regulations.

Act Now!

Learn more about the challenges facing leasing providers today, cybercrime and SaaS solutions in our detailed white paper. In addition, our LeasySOFT software provides you with practical support in optimizing your workflow. Contact our expert Justus Spehr (justus.spehr@soprabanking.com) now and find out more about this digital leasing solution.

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