A revolution in the syndicated loan market
Over the past two decades technology has revolutionised several key areas of the banking infrastructure such as digital payments, mobile banking and back-office systems. However, despite the syndicated lending market running at $4.5 trillion per annum, it remains a puzzle as to why syndicate desks have continued to operate largely manually, until now.
Traditionally, loan syndication is a complex and slow endeavour, with numerous stakeholders, disconnected data sources and de-centralised communications resulting in disorganised deal management and inefficiencies. These issues have been exacerbated as deals have become bigger, more complex in structure, and involved much larger number of participants.
HUBX, a London based fintech, has partnered with Finastra and integrated its Syndicated Loan Solution with Fusion Loan IQ – the market leading back-office solution. The partnership delivers a truly digitised end to end solution for syndicated loans.
With pre-defined workflows, built-in communication tools and process automation, HUBX reduces manual front office processes of syndicated desks by 75 per cent.
Matching algorithms allow Arrangers to instantly conduct market sounding for a particular deal by accurately identifying which lenders are best suited to each particular deal. In-app communication tools allow seamless interaction between stakeholders, eradicating the need for email chains and offline conversations, while capturing valuable feedback from lenders to service them better in future deals.
HUBX believes that lenders should not only be in be in full control of their data but that data should be utilised to provide a better and more effective service. With advanced real time analytics for deal management, Arrangers will better understand their liquidity and distribution risk, optimise their lender network and be able syndicate more efficiently with other banks.
HUBX solves the complexity of protecting sensitive data while allowing specific deal data to be shared between banks, agents and lenders with its advanced user access permission system.
the importance of interconnectivity to other internal systems within the bank, HUBX provides full flexibility to integrate across all systems through several APIs . This includes integrations with deal origination, KYC and asset servicing systems offering instant digital transformation and delivering a true end-to-end solution.
HUBX offers syndicate desks an easy to use, cutting edge technology solution that can be deployed and configured in hours. Arrangers will be able to manage all their clients, connect and work on deals with any bank, agent or lender in the market, all from a single platform.
The syndicated loan market is being revolutionised by digitisation, automation and the sophisticated use of data, driving a new direction for the way in which syndicated lending is managed.