App Hub / Banking & Finance / FI Assets Risk Distribution Digitalization App

FI Assets Risk Distribution Digitalization App

Streamline risk distribution processes for financial and corporate assets using risk-free MRPA contracts, while enabling real-time collaboration across internal bank teams and participant banks.

Overview

Banks or Financial Institutions (FI) use risk participation when working with importers and exporters to ensure that the international transaction cycle continues uninterrupted. Risk participation allows an FI to transfer its interest in a loan/exposure/risk associated with that loan to another financial institution. A Master Risk Participation Agreement (MRPA) is the legal agreement executed between a lender and a participant which defines the rights, duties and obligations of the originating lender and the participant. The agreement will also define the participant’s rights between the participant and the originating lender, including the participant’s rights to make decisions or give the lender instructions or directions regarding the loan between the lender and the borrower.

Some of the challenges in the risk distribution process include:

Poor collaboration between internal business functions of the banks and the MRPA participants, relying on emails for communication.
Use of Excel templates for data/document exchanges and approvals without a single source or version control.
Manual, paper-based and email-based interactions externally, leading to increased cycle times and difficulty in tracking changes.
Manual offer and acceptance processes with lists of asset classes to be sold maintained in Excel worksheets.
Limited ability to perform analysis based on asset classes, country limits, and bank limits under MRPA.

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App Features

Simplify the risk distribution process, covering eligible deals identification, offer and acceptance process involving MRPA participants, country limits/bank limits checking, and facilitation of the final settlement process.

Enhance collaboration with multiple parties both internal to the bank and external, across multiple geographies, improving user efficiency and end-user experience with limit updates and transaction postings.

Enforce and monitor effective, risk-free contracts with governance control, updated Terms and Conditions, and exposure management.

Increase visibility and transparency across the digital network of customers to drive faster turnaround times, leading to quick turnaround from pre-sell down to discharge processes, with risk and exposure analytics.

Use status flags to ensure that digital network members can quickly and effectively triage a vast range of operational issues, enabling optimized processes involving multiple parties to a transaction.

Streamline the process in a digital network, involving sub-processes and exception handling, with focused data and document capture that enables analysis and operational insights.

Maintain accurate data and digital document repositories with auditability across functional departments and ecosystem participants.

Receive real-time reports and secure tracking of transactions, with verified documentation and certifications as tamper-proof digital records for future use and compliance.

Business Benefits

Platform and the application help streamline Risk distribution in banks that sell-down their risk.

Building and expanding the client network is made easy via the platform into newer markets

Visibility into transaction generates more confidence in client and their operations

Platform allows banks to create more value from existing network of clients and create new revenue streams

System brings more transparency and generates more value in the network, providing faster time to resolution and reduced fraud

Banks can have an increased wallet share and tracking of the sell-down success within a private network of corporates, and MRPA participants in multiple geographies

The operations involving sell-down of FI Assets and Corporate Assets via aa secure channel with digital network of participants in MRPA with data/document exchanges shared in real-time is a real game changer to save time and bring process efficiencies