Overview
The Fund Finance solution calculates and manages a bank’s risk exposure to underlying investors in borrowing-base facilities. It captures a range of facility data to provide quick and efficient oversight of the lending portfolio.
Industry Challenges
Spreadsheet risk: Using spreadsheets to track exposure creates mulitiple of operational, financial and reputational risks. It also limits the capacity of a business to grow.
Hard to manage exposures: Manual processes make it difficult to aggregate exposures and limits in real time.
Minimal loan portfolio analytics: Without a system for Fund Finance, analyzing and reporting on portfolio performance is a complex, time-consuming task.
User Benefits
Increased transparency: Centralization of data enables dashboarding and detailed understanding of portfolio risk
Automation and control: A modern system replaces time consuming, error prone manual processes and spreadsheets
Enhanced scalability: Operational efficiency and high levels of control enable growth in lending business
Features & Capabilities
- Dashboard of deals, portfolios, investor exposures, and more lending metrics
- Investor exposure management tools
- Portfolio management covering facilities, borrowing bases and borrowing bases commitments
- Reference data management and integrations
- Analytics module to gain insights from portfolio, investor and loan facility data
- Audit trail and user permissioning
Integrations:
- Borrowing base: Supports upload of borrowing base templates and investor matching
- Loan facilities: Supports upload of facility data
- Reference data
- Reporting
Customization & Extensibility:
- Configurable Borrowing Base Management: Users can define custom rules for facility structuring, investor commitments, and borrowing base limits.
- Flexible Data Integration: Supports Excel uploads, SFTP transfers, and API integrations for seamless ingestion of investor and client data.
- Modular Risk & Exposure Calculations: Firms can customize exposure models and risk analytics to fit their unique lending and compliance requirements.
Performance Metrics & Scalability:
- High-Performance Data Processing: Handles large volumes of investor commitments and borrowing base calculations in real-time.
- Scalable Architecture: Cloud-native and on-premise deployment options ensure scalability to accommodate growing lending portfolios.
- Real-Time Risk Analytics: Supports continuous risk monitoring, helping firms proactively manage loan exposure and market fluctuations.
Component Breakdown
- Borrowing Base Management: Aggregates investor commitments and loan facilities, calculating borrowing base values dynamically.
- Risk Management & Exposure Calculator: Evaluates counterparty risk, loan exposure, and facility limits to ensure real-time portfolio oversight.
- Reference Data Repository: Stores and processes client, investor, and facility data for accurate lending analytics.
- Reporting & Compliance Engine: Generates customized risk reports, integrating with internal data repositories for seamless reporting.
- Counterparty Dashboard: Provides a centralized view of exposures, lending metrics, and facility limits for financial institutions
Event Processing Flow
- Investor & Client Data Ingestion: Data is uploaded via Excel/SFTP or API integration, populating the borrowing base module.
- Data Processing & Validation: The system processes reference data, verifying investor commitments and borrowing base calculations.
- Risk & Exposure Calculation: The Exposure Calculator assesses portfolio risks, counterparty exposures, and lending limits.
- Portfolio Monitoring & Compliance Checks: Real-time risk metrics are displayed on the Counterparty Dashboard, with alerts for breaches or anomalies.
- Final Reporting & Audit: The Risk Management module generates internal reports, ensuring compliance and transparency for lending operations.
