NatWest is the first bank to integrate with Fusion LenderComm, a new blockchain-based platform.
The solution, built by Finastra, aims to dramatically transform and streamline the global syndicated loans market.
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The new platform goes live in November 2018.
In 2017 syndicated loan deals worth over £3.5trn were brokered globally.
The Fusion LenderComm platform aims to revolutionise communication between lenders and agents.
It is using blockchain technology to ensure that messages are secure and confidential.
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By GlobalDataFusion LenderComm: Built by Finastra, underpinned by R3
The Finastra platform is underpinned by Corda – R3’s distributed ledger technology.
The first phase focuses on real-time position reporting between lenders. This means that all parties can see their records at any time. There is a roadmap to transform all aspects of syndicated lending from deal set-up and syndicate building through to settlement.
The platform aims to reduce the amount of time taken to set-up syndicated loan arrangements.
Currently, complex arrangements can take months to finalise. It also aims to achieve significant reductions in the ongoing cost of administration for lenders. Moreover, it will help to improve transparency.
Fusion LenderComm: Transforming syndicated loans
Trish Arksey, Lending Programme Director for NatWest, said: “We are excited about the possibilities that this platform offers to transform the syndicated loan market. We are investing in cutting-edge technologies and working with our suppliers and partners to deliver first class customer service and efficiency to a market that has not changed significantly in the last 20 years.”
Grant Jones, VP, Fusion LenderComm, Finastra said: “NatWest will now be able to specify and publish lender-specific deal information to Fusion LenderComm in real-time. Lenders can view this data which was previously only periodically provided by fax from agents or through telephone or email queries from lenders.
“This not only brings improved operational efficiency for NatWest and its lenders but it also brings much needed transparency to the syndicated loan market.”
