In the second part of the interview with Reggie Cabal, new CEO at ORIX, we were joined by Scott Thorpe, GM Sales and Marketing, to discuss how innovation will play a part in the fleet market.
FAN: Reggie, how long have you been with ORIX and where did the fleet journey start for you?
Reggie: My association with ORIX started back in the late nineties when I was working for a software company in Silicon Valley that specialised in enterprise application solutions for the asset finance industry. At the time, ORIX USA was already an existing client and when ORIX Australia was looking for a replacement platform, the company was evaluated and selected. I headed the Consulting Services Group during this period and ended up running the implementation engagement at ORIX Australia in 1998.
I obviously kept the relationships with ORIX locally and when they were looking at other projects I joined initially as a consultant in 2004 and finally as an employee in 2007.
FAN: What businesses do you operate in Australia today and who owns ORIX?
Reggie: We are primarily in the fleet management, novated leasing and commercial hire (truck and trailers) space. We are wholly owned subsidiary of ORIX Corporation Japan which is publicly listed on the Tokyo and New York Stock Exchanges.
FAN: And what businesses does ORIX Japan operate?
Reggie: The business model for ORIX as a global parent really varies from country to country. So we could be in funds management, corporate advisory, property development, equipment finance, leasing, asset management etc.
In Australia we’re in fleet management, leasing and rental however, we are one of the largest in the fleet management space with over a million units under management across Asia. Whilst traditionally operating and finance leases, the product offering does vary from country to country.
FAN: Can you tell us about the challenges ORIX faced in 2015?
Reggie: Well it’s been an interesting period for us. The focus in the last 12 months since notification of the alleged misconduct was really about making sure that as an organisation we maintained stability. We still had a business to run and we wanted to make sure we got that right. The main part of this was ensuring moving forward we had the governance and compliance model correct.
This business went through a lot of scrutiny and we brought in external advisors to undertake a thorough review. One of the things we did early on was commit to being upfront with people; whether it was our staff, our customers or other stakeholders. From day one we openly communicated what was happening in our business.
But there was never a doubt in my mind that at the end of that process ORIX would be a better organisation moving forward. And that’s where we are at. We have laid those foundations.
FAN: Did you lose any clients during this period?
Reggie: Yes. However we lost them due to poor timing because they were either already reviewing or starting the review process or simply due to competitive pressures. More important is the fact that as a business we also won a lot of great clients and ultimately had a very successful year.
One thing I want to point out is that the issues of the past 12 months was the result of individuals and not the organisation. I really think it’s an important point to highlight because the culture in this organisation is solid.
