Whole Business Securitization: The Digital Advantage for Investors and Lenders

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As FinTech continues its shift in support of online lending and digital contract management, processes must support the critical steps required to comply with regulations. These best practices will not only enhance investor confidence, but provide the transparency needed for funders, investors, custodians, rating agencies and customers. In addition, asset level analysis of data captured on each loan will mitigate risk for lenders, investors and third parties. Fortunately, new technology platforms offer an unprecedented level of insight and due diligence, making digital securitizations the new normal.

Digital Data Collection, Technology and Integrity Promote Acceptance

Data collection through digital transaction technology can be used to certify the integrity of the content, the identity of the signers and the authenticity of the document, therefore ensuring that any alterations are detected and recorded at every stage of the document lifecycle. These types of platform processes provide the steps that will empower securitization of digital financial assets.

Most importantly to an investor, the data must reflect the underlying financial asset documentation. The good news? Technology now exists to support significant lending volumes across many different asset classes to support digital transfers and ownership into the secondary market.

Securitization Processes Shift to Digital

Advanced reporting is a requirement for organizations that plan to move assets on to the secondary markets for collateralization and/or securitization. It is an imperative to provide loan-level disclosure for assets to give investors assurance while facilitating capital formation in the securitization sector.

The benefits of an end-to-end Digital Transaction Management (DTM) solution include:

  • Quickly Provide Data Analysis: Monitor and run reports in real time on each individual or collection of asset-level data
  • Capture and Record all Transaction Data: Ensuring that collection of data and analysis is recorded from all integrated electronic document sources
  • Digital Audit Trail: Access all actions captured through the entire loan to provide to third parties
  • Digital Auditor Support: Quickly respond to auditors via a digital solution that integrates an audit analysis and reporting tool for existing datasets
  • True Transparency: Real-time data across various document types and over the entire transaction show the true chain of loan execution all the way to custody

Best Practices through FinTech

A true transformation means accepting digital securitizations as the next logical step in Digital Transaction Management. Today’s financial technology provides avenues to meet and exceed requirements for compliance and risk mitigation. To establish confidence, investors must feel comfortable enough to make an educated purchase in this sector, and key players in the ABS market must look to financial technology that provides the necessary processes to ensure certainty in eAsset® Management.

Interested in a digital transition? The eOriginal team is heading to Miami for the 22nd Annual ABS East Conference. In addition to exhibiting, Stephen Bisbee, eOriginal’s President and CEO, will participate in a panel discussion titled, “FinTech Developments Affecting the ABS Market”. We would like to touch base with you at this year’s event. Please click here to schedule a meeting ahead of September’s Conference.

 

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