NatWest has become the first bank to integrate with a new blockchain-based platform to transform and streamline the global syndicated loans market.
Fusion LenderComm, the blockchain-based solution built by Finastra, will help NatWest streamline communication between agent banks and lenders in the syndicated loan market. The new platform is set to go live next month.
Last year, over £3.5 trillion syndicated loan deals were brokered around the world.
“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," Trish Arksey, Lending Programme Director for NatWest, said in a press release.
The new platform utilizes blockchain technology to improve communication between lenders and agents by assuring messages are secure. The first phase of the project focused on real-time position reporting between lenders so everyone can see their records at any time.
“NatWest will now be able to specify and publish lender-specific deal information to Fusion LenderComm in real-time, while its 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," said Grant Jones, VP, Fusion LenderComm, Finastra.
The platform is underpinned by Corda – R3’s distributed ledger technology.
“The syndicated lending industry relies on costly, manually-intensive processes, making it ripe for innovation with blockchain technology. Fusion LenderComm, powered by Corda, has been proven to address these issues. The solution delivers immediate efficiencies and reduces costs for both agent banks and lenders. We have enjoyed working closely with NatWest and Finastra, along with the many other leading institutions involved in this project. Now the focus shifts to the next phase as together we bring Fusion LenderComm into production,” added David E. Rutter, CEO at R3.