“Get ready to Unlock the power of Speed and Maximize your Return Portfolio”

In a world full of financial landscapes in the corporate industry, optimizing an end-to-end lending process is one of the crucial business matters. However, end-to-end lending solutions will provide you with a comprehensive approach to managing corporate operations, boosting your speed, and driving the performance of your portfolio to the sky heights.

“The Power of End-to-End Lending Solutions in Corporate Finance”

The question arises that the best solution for END-TO-END LENDING in corporate finance can be supported by the banks, then what’s the big deal? Here is the reason:

According to the IDC Global Corporate Treasury Survey in the year 2019, it has been observed that the Banks have a huge chance to grow and gain from the market share. However, IDC had surveyed that almost 30% of the worldwide corporate treasurers were unhappy and dissatisfied due to the quality of service which was offered to them. In addition to the above facts, ‘Improved access to funds’ was the top goal for treasurers in 2019 (84%) and will continue to be significant in 2022 (54%).

Banks need help in growing their company due to the absence of a complete loan servicing solution. It happens due to numerous obstacles given by the current lending environment. The obstacles are:

1. Market Size and Difficulties

The worldwide loan industry has recently experienced significant expansion with over $4.6 trillion in 2022 over projected issuance. Deal sizes and lender groups have expanded along with the market, and they can now exceed 1,000. With extremely complicated, customized, and ever-evolving loan arrangements, the loan asset class also entails a high degree of complexity. Despite the asset class’s magnitude and complexity, the market has not changed or embraced innovation quickly enough to provide the necessary efficiency to support future expansion.

2. Economic Uncertainty

Financial markets have seen significant volatility due to several macroeconomic and geopolitical issues, including supply chain disruptions, conflict, rising energy prices, inflation, and quickly rising interest rates. These pressures also affect the credit market. These economic challenges are expected to increase default rates in the upcoming years, necessitating ever-greater risk management on the part of lenders. This means that it is crucial to have integrated, streamlined end-to-end lending solutions with access to accurate, up-to-date data in real-time.

3. Customers Preferences

Consumer expectations are changing with a trend toward a more retail-like experience that includes digital channels for automation, speed, transparency, and self-service. Customers are seeking comprehensive solutions that can help businesses remain ahead of the curve and seize opportunities in the market. There is a great need for interoperability that permits cross-platform cooperation, which calls for open and integrated solutions. The finest financial institutions to satisfy the changing requirements of today’s clientele will be those who can innovate and adapt fast.

4. Competition

There is fierce competition among banks and non-bank financial organizations in the corporate lending space as they compete for market share. As banks loosen lending standards to retain business, the increased competition puts their market share at risk and may result in margin compression and increased credit risk. For this reason, it’s more crucial than ever for FIs to set themselves apart from their competitors by providing a best-in-class client experience that flawlessly integrates all aspects of the lending process, from origination to servicing.

5. Higher Total Cost of Ownership (TCO)

Banks frequently attempt to link all the many systems and solutions that they use in the lending process. Banks depend on several systems to handle their varied loan portfolios, which leads to uneven workflows and expensive operational expenses. Financial institutions are unable to satisfy client requests owing to the fragmented lending environment, which also increases risk, causes problems with data quality, and results in inefficiency. They raise operational and technological expenses when these elements come together, and they have a detrimental effect on profitability by taking up resources that could be used for value-added activities that increase revenue.

The Advantages of LoanIQ-

It is a tried-and-true solution and the world’s most demanding loan markets were the target audience for Loan IQ. It is the result of more than 40 years of working together with leading industry players to apply best practices to every facet of lending.

Reduce the cost of technology

• A worldwide platform-based solution based on a single data model and a simplified system architecture that enable lower hardware costs and a more efficient and economical infrastructure.
  • Less systems to maintain equals less resources needed for security, upkeep, updates, and other tasks.
  • Cut down on or do away with license costs for third-party vendors.

Facilitate the expansion of businesses

• Automation drives scalability to support growth in lending volumes
• Simplified access to lending data via a single source with a unified rich data model
• The single-customer view gives a better understanding of risks and/or revenue opportunities
• Broaden customer base with a wide range of lending products to meet customer needs and attract new business.

Boost productivity

• The capacity to automate will free up capacity to break the link between growth and resource requirements, allowing banks to do more with their current headcount and avoid future hiring costs.
• Less time spent on training as employees can develop expertise in one industry-standard platform.
• The ability to optimize operating models with a centralized, standardized best-practice approach across all business lines.

Shorten Risk

• Enhanced controls and automatic ‘quality validation’ across the whole loan lifecycle to reduce errors in booking, pricing / fees, payments, settlement, bills / notices, AML compliance, collateral, etc.
• Consolidation and process automation reduces manual touch points to avoid operational risk events.
• Single data model improves exposure management and controls by improving recovery in default scenarios via integrated collateral and covenant management capabilities.

LOANIQ SOLUTION CAPABILITIES

LoanIQ effectively oversee specialized, SME, and complicated loans in one integrated system on a cutting-edge technology stack with industry-standard and customizable components for your organization.

1. Comprehensive Agency Support

Lifecycle management for all the connections, procedures, and paperwork needed to service loans on a single platform. Loan IQ is intended to decrease mistakes, limit risks, and streamline procedures across an organization or group.

2. Comprehensive trading features

Gain access to a single, real-time view of every back-office activity that impacts a trader’s portfolio during the course of the loan. Complete multi-currency and multi-branch capabilities offer the most recent information on the performance of the whole business.

3. Excellent Accounting and Auditing facility

The accounting features of Loan IQ offer unmatched functional depth by fusing online accounting with real-time debits and credits. There are some examples of adjustable parameters like Multiple branches, multiple business lines, and a general ledger/sub-ledger with a changeable account mapping. Reducing the requirement for double entry and reconciliation is possible when managing lender shares and portfolio holdings across several organizations. The system comes with a robust audit trail and user security features.

4. Carefully Management of Large and Medium-sized lender deals

Organize the connections, workflows, and paperwork that are necessary to support intricate syndicated deals. In every contract, one can assist anything from a few to over a thousand lenders. Loan IQ has been designed to manage the largest variety of deals from the simplest to the most complicated.

5. Optimized workflows for all loan types

Customers can expedite the booking and processing of  or bilateral loans by utilizing industry-standard Loan IQ workflows. Loan IQ assists with portfolios in the middle market, small business, business banking, and various specialized lending industries, such as asset-based lending, commercial real estate, shipping, agribusiness, aircraft, and infrastructure.

6. Portfolio management and business insights

The administration of several portfolios across various organizations and business lines is made easier with Loan IQ, enabling your organization to appropriately assess risk throughout the whole business. With the help of the solution, you may combine data from several asset classes across numerous platforms into a single, all-inclusive portfolio management tool.

7. Advanced Collateral Management

Develop and oversee a greater amount of financial and non-financial assets—like commercial real estate—that are connected to collateralized loans. A wealth of information on the collateral across the portfolio, such as asset registration, unit data, rent rolls, and invoices, may be recorded, kept up to date, and reported on. Maintain collateral events, cross-collateralization, and insurance while assisting with the tracking of assets against facilities and drawings.

LOANIQ ENABLES THE CONSOLIDATION OF LENDING PLATFORM FROM MULTIPLE SYSTEM DOWN TO ONE-

Loan IQ is provided in an industry-standard technology stack that enables financial institutions to service different lending business lines with current and portfolio-specific capabilities. Due to this, lenders may effectively combine all commercial loan types onto a single platform, ranging from high-volume, straightforward bilateral loans to the most intricate syndicated loans. This lowers costs while guaranteeing banks can provide a better customer experience than their rivals.

Loan IQ uses an unparalleled depth and breadth of capabilities to reduce the high costs associated with system and process redundancy within commercial lending operations. This allows banks to effectively support every stage of the loan lifecycle, from trading and settlement to deal management and servicing. Banks that use Loan IQ benefit from increased business agility, which makes it easier and faster for them to join new markets and provide total insight over risks, performance, and exposure.

An open platform called Loan IQ functions as a comprehensive end-to-end loan servicing solution, cutting down on processing times, human labour, and integration expenses in order to increase automation and enhance controls all the way through the loan service lifecycle.