Finastra, a fintech company formed through the collaboration of D+H and Misys, together with seven leading banks and enterprise software firm R3, is working to create a distributed ledger technology (DLT) platform for the syndicated loan market.
The participating banks include BNP Paribas, BNY Mellon, HSBC, ING, and State Street.
Dubbed ‘Fusion LenderComm’, the platform is underpinned by R3’s Corda DLT platform. By providing real-time data directly to lenders from agent bank loan servicing platforms, it will help reduce the operational cost and burden of agent to lender administration and deliver self-service capabilities to lenders, providing accurate information on demand to optimize loan portfolios.
“Syndicated lending is exactly the type of market that will derive huge benefits from DLT. Transparency, efficiency and risk are major concerns with current systems and processes. We built Corda specifically to tackle issues such as these, whilst meeting the unique privacy and security requirements of regulated financial institutions,” David E. Rutter, CEO at R3, said.
In the pilot phase, agent banks were able to publish loan data to the DLT platform. Through their own portal, agents can define and then publish lender-specific deal position data to Fusion LenderComm, so individual lenders can drill down into the data without needing to query positions on the phone or via email, as is typical today.
Fusion LenderComm digitizes communication with lenders – driving efficiencies in the process, saving agents time and money, and eliminating operational risk. Data is securely transferred within Fusion LenderComm using Corda.
The Fusion LenderComm platform is expected to launch next year, the release said.
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