(This article written by Todd Nelson was published on Finance & Commerce September 6, 2021)
From trucks to copiers to airliners, from assets ranging from $500 to $500 million in value, companies lease much of the equipment they use to do business, making equipment finance a near $1 trillion part of the economy.
Two Twin Cities-based companies that help banks and other entities manage their lease portfolios — IDS and Tamarack Technology — are teaming up to support the digital transformation of the equipment finance industry.
IDS, a leading provider of secured finance solutions for enterprises, and Tamarack, a leader in digital transformation services and solutions for equipment finance, signed a strategic partnership agreement in July to accelerate migration of firms to the former’s IDScloud platform, a software-as-a-service solution for equipment finance.
Four decades in equipment finance
IDS, founded in Minneapolis 40 years ago, serves 34 of the top 50 banks in the United States and seven of the 10 largest equipment financing firms, according to Katie Emmel, IDS chief operating officer. Clients include Wells Fargo, U.S. Bank and Bank of America. Jointly headquartered in the United Kingdom after the acquisition of an equipment finance software company announced in June, IDS serves more than 300 customers in North America, Europe and Asia Pacific. IDS has more than 700 employees with some 130 in Minnesota.
“From a competitive perspective it helps us in having an organization like Tamarack with the reputation that they have, some of the go-to-market offerings that they either have today or working on,” Emmel said. “It broadens the capabilities and offerings to our customers from what we have today. They have relationships with a lot of great organizations in the industry, so we’re excited about that opportunity as well, where they’ve got some customers who could be future IDScloud customers. That is certainly a key component of the partnership for us also.”
Tamarack is an independent provider of software, consulting and technology services supporting equipment finance lessors. Chief Executive Daniel Nelson, who founded Tamarack in 2001, said the firm helps lessors gain operational efficiencies, offers integration, implementation and data migration services and automation products for leading portfolio management platforms in the industry.
The partnership enables IDS and Tamarack to collaborate further to provide better service to the large number of customers they have in common, Nelson said.
“Both Tamarack and IDS can focus on what are the products and services that the customers need most to help grow their business,” Nelson said. “The partnership opens up the opportunity for us to collaborate with them and share our ideas. Our services are very complimentary. Working together, I believe we can deliver, both companies can more efficiently deliver their strengths to those common customers.”
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