Fusion Loan IQ: Advanced Collateral Management

FUSION LOAN IQ ADVANCED COLLATERAL MANAGEMENT

Proactive, Efficient Collateral Management

Financial institutions today need fiscal discipline, Advanced collateral especially when dealing with corporate cash flows. “management enables the Efficient collateral management can ensure enhanced proactive and efficient capture and management of all loan loan data management not only across region, time zone associated collateral in a single, and collateral type but can provide deeper insight into the global deployment, for greater economics of the underlying, income producing collateral. counterparty risk control.”

Controlled Asset Management, needs of different business-lines spanning Increased Opportunity diverse countries without costly vendor Detail-intensive, paper-based, and customization. Fusion Loan IQ responds error-prone, the management of to this need with an Advanced Collateral collateral, covenants and guarantees Management module that enables the is often troublesome, exposing proactive and efficient financial institutions to the potential capture and management of collateral for unnecessary losses, defaults and in a single, global deployment, for risk. Having the ability to capture and greater counterparty risk control. streamline loan and associated collateral Fusion Loan IQ enables efficient and data can provide not only insight into controlled management and surveillance how a loan is performing today but how of collateral associated with collateralized it may perform in the future, allowing loans on a single global platform. It is for enhanced investor reporting as well the foundation for all types of secured as the ability to take advantage of new loans including financial securities, business opportunities and strategies real estate and other physical assets, with confidence. commercial mortgages, construction While many packaged systems offer loans, receivable and inventory lending extensive, pre-defined collateral catalogs, (Asset Based Lending or ABL) and dealer few are capable of meeting the varying floor plan financing.

FINASTRA Factsheet 1 Efficient and Controlled Management and Surveillance of Collateral on a Single Global Platform

Improved Transparency for Collateral Key Benefits Management and Reporting Advanced Collateral Management • Increased efficiency through includes configurable best practices comprehensive creation and for managing perfections, manual maintenance of collateral revaluations, renewals and releases, and guarantees 30% ensuring compliance with policy and • Data and process needs specific to dramatically reducing operational risk. each business-line and geography, Automated collateral revaluations driven perfectly matched through by any number of pricing sources are system configuration also supported. cost savings can be achieved • Control over local and business- Administrators can define and deploy with collateral management line variations assured by a unified all types of agreements, collateral, efficiencies contributing to global data model insurance certificates, documents and streamlined lending systems tax obligations quickly and intuitively • Improved basis for decision- while improving reporting. It all makes the making and risk management Advanced Collateral Management module through high data integrity levels the ideal solution for every collateralized • Rapid response to new regulation business-line, including: without coding thanks to ‘add and •• Commercial Real Estate and Construction amend’ custom fields •• Aviation • Consistent management of loan •• Shipping collateral across the institution on •• Financial Securities a single platform and database •• Cash Accounts •• Commodities • Intuitive aids like graphical ‘SmartFolders’ make complex deals more accessible and reduce risk

2 FINASTRA Factsheet Key Functional Highlights • Customization across the full range of off-the-shelf collateral, guarantees, insurance, tax obligations and supporting document types • Easy addition of new fields in response to changing business or regulatory demands • Configuration of validations, approval policies and ‘best practice’ • Capture of unit details of collateral (rent-rolls and invoices, for example) SmartFolder Complete View SmartFolder Isolation View • Cross-collateralization • Automatic revaluation from multiple pricing sources Adaptable Platform Simplifying the Picture • Management of perfections, Administrators have the ability to create Managing collateral involves many renewals, revaluations and releases custom fields and configure field-level moving parts—especially when the • Automatic recalculation of validations and business rules specific to customer is part of a complicated legal each lender’s share of collateral each business-line and geography. So the entity with many independent borrowings (syndications and club deals) platform can be readily adapted to meet tied together by a complex web of evolving business, regulatory, and risk guarantees and cross-collateralization. • Use of ‘SmartFolders’ to make management requirements. complex relationships easy to A SmartFolder Home Screen offers view, understand and manage Flexible catalogue definition combines a simple and intuitive view of all the with best-practice configuration and interrelationships, reducing time • Off-the-shelf reports, online usability to deliver the efficiency needed and complexity and ensuring that all coverage and portfolio analysis by users and the control and transparency customers and related parties can demanded by managers and regulators. access the information they need.

FINASTRA Factsheet 3 Advanced Collateral Management Streamlines Day-to-Day Processes with SmartFolders

Intuitive, Efficient User Interface Streamlining Day-to-Day Processes Advanced Collateral Management’s user Advanced Collateral Management interface is based on “SmartFolders”. drives efficiency, streamlining day-to-day The system allows users to organize processes through the SmartFolder. all the essential pieces, understanding For example, the user may add all and managing the entire relationship. customers and related parties (such The resultant master record transcends as appraisers, insurers, etc.) to the individual borrowings. SmartFolder at the beginning of the process. These customers then populate Any user with the correct security profile any “customer” drop list found in any can copy an existing SmartFolder into object when it is created or managed their favorites folder. But only its owner in the SmartFolder, avoiding repeated, can modify or delegate management tedious and time-consuming look-ups. of the contents.

SmartFolder Home Screen: Users create and access SmartFolders within Fusion Loan IQ’s Navigator User Interface. Here, users can view and manage activity pertaining to a set of related collateral objects.

About Finastra Corporate Headquarters Finastra unlocks the potential of people and businesses in fi nance, creating a platform for open innovation. Formed in 2017 One Kingdom Street by the combination of Misys and D+H, we provide the broadest portfolio of fi nancial services software in the world today – Paddington spanning retail banking, transaction banking, lending, and treasury and capital markets. Our solutions enable customers to London W2 6BL deploy mission critical technology on premises or in the cloud. Our scale and geographical reach means that we can serve United Kingdom customers effectively, regardless of their size or geographic location – from global fi nancial institutions, to community banks T +44 20 3320 5000 and credit unions. Through our open, secure and reliable solutions, customers are empowered to accelerate growth, optimize cost, mitigate risk and continually evolve to meet the changing needs of their customers. 48 of the world’s top 50 banks use Finastra technology. Please visit fi nastra.com

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