How usage-based models are reshaping the future of leasing and lending

In this piece of our Industry Insights series, we explore how the asset finance industry is evolving in response to changing customer expectations and technological innovation. Drawing on insights our conversation with Shasikkumar Veeramani, Solution Architect at VIP Apps Consulting, we discussed how the asset finance industry is evolving in response to changing customer needs and technological capabilities.

From traditional leasing to usage-based and subscription finance models, the shift is reshaping how financial institutions, manufacturers, and captives approach lending, and technology is at the heart of this transformation.

Moving beyond traditional leasing

Asset finance has long been rooted in fixed-term finance and operating lease structures. But over the past five years, the market has seen a significant shift toward more flexible, usage-driven business models. Inspired by consumer trends and fintech innovation, lenders are increasingly exploring subscription-style offerings that allow customers to pay based on how much they use an asset.

This “pay-per-use” model is especially relevant in vehicle and equipment leasing, where customers are seeking more control and transparency. Think beyond the typical 5,000-mile vehicle lease cap: companies are now applying similar models to heavy machinery, commercial vehicles, and industrial equipment.

Technology as an enabler of innovation

As Shasikkumar explains, adopting these models is not simply a business decision, it’s a technology-first strategy. The complexity of usage-based billing, asset tracking, and customer engagement requires robust systems that can scale.

“The underlying platform must be capable of handling usage-based billing, asset valuation, and real-time customer interactions,” he says. “It’s the only way to support this kind of innovation at scale without overloading operations.”

Legacy systems often struggle to adapt to this level of agility. Modern platforms like Salesforce especially when paired with managed packages like Q2 for lease and loan origination, offer the flexibility to configure 70–80% of requirements out-of-the-box. The remaining 20% can be customised around the business’s specific needs, allowing companies to build around a strong, extensible core.

Streamlined processes and integrated ecosystems

What makes these new models successful isn’t just the front-end experience. It’s the seamless integration across origination, middle office, and back office systems. Whether it’s a bank consolidating its technology and vendor finance operations, or a vehicle leasing company replacing legacy systems across North America, success depends on how well the entire process is designed, automated, and interconnected.

At VIP Apps Consulting, we work closely with clients to map out their end-to-end business processes before making any technology recommendations. This approach helps identify opportunities for streamlining and futureproofing operations ensuring that transformation is not just digital, but strategic.

Looking ahead: Future-ready finance

The shift to usage-based models is just one facet of a broader transformation in asset finance. From evolving customer expectations to the potential of AI-powered digital lending platforms, the future is filled with possibilities. But without the right foundation, data readiness, integration capabilities, and scalable technology, innovation can quickly become operationally unsustainable.

“It’s about more than features — it’s about how ready your business is to support them,” says Shasikkumar.

Explore More

This article is based on an internal interview with Shasikkumar Veeramani, Solution Architect at VIP Apps Consulting. His perspective draws on years of experience implementing large-scale origination and digital transformation projects across the financial services and leasing industries.

Stay tuned as we continue to explore the forces shaping the future of asset finance, from new business models to platform innovation and emerging technologies.