Finastra was founded in 2017 by the merger of Misys and D+H offers the world’s largest financial software portfolio. This includes solutions for Retail and Corporate Banking, Transaction Banking, Investment Banking, banking and Treasury and Capital Markets. Finastra Software can use customer’s own data center or as a cloud-based solution. We met Senior Principal Product Manager, Orton, Helen, to the Interview and talked with her about the Blockchain platform LenderComm.
For all the readers that don’t know, what is Syndicated Lending?
Syndicated Lending is a Form of lending in which two or more lenders to one or more credit borrowers together. It comes about in the case of high volume of credit or to spread risk. The lead intermediary Bank for all administrative tasks. The can cost for many Involved extremely intensive and time-consuming. So far, the intermediaries, banks use a large portion of their time on communication and coordination in the case of such a credit. Us Finastra, it was clear that there must be a better solution, which enables significantly faster and especially more efficient credit management.
Very briefly: What is the goal of Fusion LenderComm?
Fusion LenderComm is a modern, block-chain based platform that simplifies the exchange of information in the Syndicated Lending sector. It also serves to make the market for syndicated lending more transparent and more effective than ever, and ultimately to increase the liquidity. The platform connects leading banks and lenders, so that the latter can get a personalized real-time view of data of different intermediary banks. In this way, information about the credit agreement, to provisions and positions, as well as integrated transaction data are available. Our goal is to reduce the costs, operational burdens and risks to lenders and agent banks significantly.
And the challenge that Fusion LenderComm solves?
Agent banks and lenders in the syndicated loan market are often more traditional, work-dependent, intensive and manually operated technologies, such as Fax, E-Mail and telephone. These are to be used, critical of the Treaty, the exchange of information between the Thousands on the financing, brokering, Monitoring and trading of syndicated loans stakeholders. Such action charged to the market participant with an extremely slow and inefficient processes. Fusion LenderComm standardized and automated processes for the exchange of information, which were previously done manually. For this, we have created Fusion LenderComm a platform on which all credit information in a structured and transparent manner at any time. Participating intermediary banks can create on a lender matched contract data on your own loan software, then publish about Fusion LenderComm and lead together. Lenders can obtain this data independently in the Self-Service and gain a real-time overview of your balance sheet items.
How do you define the term “Blockchain”?
The Blockchain is the well-known slogan the new technology, but we put our solution on the underlying Distributed Ledger technology. The appeal of this Form of data processing is that several participants can work together at different locations. Each has an identical copy of the database. The entered data is secured by cryptographic signatures, and a mechanism that synchronizes them automatically. The distributed network ensures not only the transparency of an extremely high data – in and manipulation security. The access to the data is set up so that each loan can be donor access only their own data.
What do you need a Blockchain?
With our block chain-based platform, we can leave the biggest flaw in the syndicated loan market, The lead Bank can reduce the cost and effort for the management of such a loan dramatically. On our platform, all the Participants Write and read rights and can at anytime see the Status quo of a loan. In addition, the solution is thanks to the Blockchain technology is extremely safe. Our award-winning* Fusion LenderComm platform makes a quick and efficient loan administration.
You think that the time is ripe for a block-chain based Lending solution to keep up with Bitcoin & co. step?
We are convinced that the time has come to replace the outdated voting processes in the syndicated loan sector. The Blockchain technology is the key instrument for this Revolution. That there is a strong demand for our solution in the market, has already shown the pilot phase. To the seven leading global banks have been involved in our platform, including BNP Paribas, HSBC and ING. After the very successful test phase, the technology can now be used commercially. We invite you therefore to other lenders and agent banks, to be part of this exciting development.
*Fusion LenderComm was recognized by FSTech as the “Blockchain Project of the Year”.