Finastra was founded in 2017 through the merger of Misys and D+H and offers the world’s most comprehensive financial software portfolio. This includes solutions for retail and corporate banking, transaction banking, investment banking, credit, treasury and capital markets. Finastra Software customers can use the software in their own data centre or as a cloud based solution. We met Senior Principal Product Manager Helen Orton for an interview and talked to her about the LenderComm blockchain platform.
For all readers who still don’t know what exactly is cryptosoft?
Syndicated lending is a form of cryptosoft in which two or more lenders jointly provide loans to one or more borrowers. It is used, for example, for high credit volumes or for risk diversification like shown here: onlinebetrug.de. The lead intermediary bank is responsible for all administrative tasks. This can be extremely cost-intensive and time-consuming, especially for many participants. So far, the intermediary banks have spent a large part of their time communicating and coordinating such a loan. It was clear to us at Finastra that there had to be a better solution that would enable much faster and, above all, more efficient credit management.
In short, what is the goal of Fusion LenderComm?
Fusion LenderComm is a state-of-the-art, blockchain-based platform that simplifies the exchange of information in the syndicated lending sector. It also serves to make the syndicated lending market more transparent and effective than ever and ultimately to increase liquidity. The platform networks lead banks and lenders, giving them a personalized, real-time view of data from multiple intermediary banks. In this way, information on loan agreements, provisions and positions as well as integrated transaction data is available. Our goal is to significantly reduce the costs, operational burdens and risks for lenders and intermediaries.
And what is the challenge facing crypto trader?
Intermediary banks and lenders in the syndicated loan market often still rely on traditional, labor-intensive and manually operated technologies such as fax, email and telephone or this: https://www.forexaktuell.com/en/crypto-trader-scam/. They use these to exchange critical contract information between thousands of players involved in the financing, brokerage, monitoring and trading of syndicated loans. Such an approach places a burden on market crypto trader with extremely slow and inefficient processes. Fusion LenderComm standardizes and automates information exchange processes that previously took place manually. With Fusion LenderComm, we have created a platform on which all credit information can be accessed at any time in a structured and transparent manner. Participating intermediary banks can create contract data tailored to lenders using their own credit software, which they then publish and merge via Fusion LenderComm. Lenders can access this data independently in self-service and gain a real-time overview of their balance sheet items.
How do you define the term “blockchain”?
The blockchain is the well-known buzzword of the new technology, but we rely on the distributed ledger technology on which it is based for our solution. The attraction of this form of data processing lies in the fact that several participants can work together in different locations. Each participant has an identical copy of the database. The entered data is secured by cryptographic signatures, and a mechanism synchronizes it automatically. In addition to transparency, the decentralized network guarantees extremely high data and manipulation security. Access to the data is set up in such a way that each lender can only view his own data.