Intellect Securitization hub takes care of complete life-cycle of the securitization process and supports selling, buying and repurchasing of loan portfolio. The hub would be interfaced with legacy lending system and GL system of the bank for loan transactions and financial entries respectively and takes care of only the securitization process of portfolio selling / buying.
BANKS ARE GRAPPLING WITH THE ENORMOUS COMPLEXITIES OF DEBT SECURITIZATION
Banks resort to securitization of their debt portfolio to another bank or financial institution as part of their fund flow management. The process of securitization covers the selection of pool of loan portfolio, identifying the discounting factor to purchase the portfolio, amortizing the sale value as payout schedule and special treatment in the books of accounts.
Generally no loan system as such covers the process of Securitization as it is not part normal business line. Securitization Hub is an independent tool that can be integrated with any loan system and does only the process of securitization by importing the data from the legacy system.
INTELLECT SECURITIZATION HUB ENABLES ENTIRE SECURITIZATION DEBT MANAGEMENT
- Loan pooling logic – Based on branches, currency, product type, delinquency and other filtering conditions and rules Selected loan scan be discounted at agreed rate & arrive at Net Present Value (NPV) of the total loan portfolio. Unselected loans will be “unmarked for securitization” and will be available for future securitization
- Securitization of debts with or without recourse or service. Loans can be continued to be serviced by the bank but flagged as securitized, hence no accounting would be undertaken.
- Investor payout schedule for the securitized loans
- If the securitization is with ‘recourse’ then full installment amount will be payable to the investor
- If the securitization is without ‘recourse’ then exact collection from the customer will be payable to the investor Payout schedule will change if interest rate changes
- Pay-out schedule will be modified automatically when one or more loans are repurchased, preclosed, partially settled or rescheduled.
- Handles securitization expenses, profit on sale, and its amortizations and arrives final profit or loss on securitization. Repurchase of the loan portfolio after the securitization duration.
PROVEN EXPERTISE SPEAKS FOR ITSELF
PARTNERING FROM THE BEGINNING TO THE END – AND BEYOND
At iGCB we believe in complete partnership, not just in being another ‘vendor’. We will engage with you during the creation of the product for your line of business with the system to ensure quick ‘go to market’ strategy and provide effective and efficient workarounds for your unique functionalities / processes. Our expert teams will also help in defining your ‘go-to’ process through pre-configured designed products. In addition to this, we provide you with near real-time scenarios to run the Business scenario simulation. Our experts also elucidate how to bundle the multiple business products with existing re-usable components.
- We walk you through the standard securitization process and debt filtering conditions based on your business lines with the system
- Provide effective and efficient workarounds for your unique functionalities / processes
- Identify the interface touch points required for all your legacy products (lending, core banking & GL) and explain how Securitization hub will be interfaced with all your existing products
- Provide you with near real time scenarios to run the Business scenario simulation
Securitization hub can be implemented in 16 weeks
FULLY SCALABLE, ROBUST, SOA-COMPLIANT PLATFORM
The Intellect full-spectrum banking suite is built on Java, J2EE standards and is built from ground-up to be highly scalable, reliant with high-performance throughput with the ability to process up to 100 million transactions per day.
Having been built on open standards, the products within the Intellect suite are application-server and operating-system agnostic and are capable of being deployed in both on-premise as well as hosted-modes, giving customers high-degree of flexibility while driving down TCO.
The Intellect suite is SOA-compliant and incorporates robust service-enablement and powerful integration layers, with ready-made interface cartridges supporting several well-known backend product processors.
Digital is the way forward for banks and financial services organizations. In fact, Digital encompasses everything of all types of banking. To enable them leverage digital, Intellect's design philosophy, a key differentiator in developing solutions for the transformative agendas of CXOs, ensures a dramatic shift from disjointed digital activities to strategically aligned digital outcomes. The full spectrum advanced intellect suite of products is built on iDigital, which delivers a uniquely comprehensive digital platform to financial institutions.