London-based FinTech firm Finastra has signed three global banks on its blockchain platform for syndicated loans.
Finastra’s blockchain platform, called Fusion LenderComm, was developed in close collaboration with some of the world’s top global banks, including BNP Paribas, BNY Mellon, HSBC, ING and State Street. Powered by R3’s Corda Enterprise, the platform aims to transform and streamline the global syndicated loans market by enabling financial institutions acting as agents to publish loan data to the ledger and extend self-service capabilities to lenders. It enables banks to instantly share credit agreements, accrual balances and position data to lenders.
Finastra announced in a press release that it has signed BNP Paribas, Natixis and Societe Generale on the platform as part of a coordinated campaign. UK-based National Westminster Bank (NatWest) was the first bank to go live on Fusion LenderComm.
“All of these banks were part of our Fusion LenderComm pilot and the momentum that the platform has seen since then is nothing short of extraordinary,” said Grant Jones, VP, Fusion LenderComm, Finastra. “This is an historic step that brings leading global banks together on the platform in the live Fusion LenderComm environment, for seamless and secure information exchange. But more than that, this is an important inflection point, paving the way for the whole industry to come on board, achieving even further critical mass.”
Philippe Boulas, Global Head of Corporate Banking Operations at BNP Paribas, said that they have been fully supportive of the Fusion LenderComm initiative since the beginning as it prompts the major players of the industry to work together and improve the service they offer to their borrower-clients in terms of quality, reducing delay and costs.
“With the creation of this community and a collaborative mindset we have a unique opportunity to tackle the operational pain points we have all been experiencing for years and that constrain syndicated loan market expansion,” said Boulas.
Cécile Bartenieff, Chief Operating Officer of Global Banking & Investor Solutions at Societe Generale, believes that the platform will help provide greater transparency and operational efficiency to the syndicated loan market for the benefit of all participants, including the pool of banking lenders and our borrower clients.
“This is an illustration of how blockchain can help banks optimize the entire flow of financial operations in a standardized and secured framework,” said Bartenieff.
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