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
o If the securitization is with ‘recourse’ then full installment amount will be payable to the investor
o If the securitization is without ‘recourse’ then exact collection from the customer will be payable to the investor
o Payout schedule will change if interest rate changes
o 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.
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 limit creation and collateral types 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 products and explain how CSH will be interfaced with all your existing products.
· Provide you with near real time scenarios to run the Business scenario simulation. We aid quick implementation of the system in approximately 16 weeks.