"We are excited about the possibilities that this platform offers to transform the syndicated loan market."
NatWest has integrated with a new blockchain-based platform to help it streamline communication between agent banks and lenders in the syndicated loan market.
A syndicated loan is where the size and risk of a loan cannot be accepted by a single lender and a ‘syndicate’ of two or more lenders is required to spread the risk.
In 2017 syndicated loan deals worth over £3.5 trillion were brokered globally, but NatWest says a lack of technology has resulted in a syndicated loans market that is "inefficient, costly to operate and heavily reliant on manual processes".
Finastra's Fusion LenderComm solution promises to improve efficiencies, communication and transparency between lenders and will provide a roadmap from deal set-up and syndicate building through to settlement.
The platform, which is set to go live from November 2018, aims to dramatically reduce the amount of time taken to set-up syndicated loan arrangements for customers as well as reducing the ongoing cost of administration for lenders.
Trish Arksey, lending programme director for NatWest, said: “We are excited about the possibilities that this platform offers to transform the syndicated loan market. We are investing in cutting-edge technologies and working with our suppliers and partners to deliver first class customer service and efficiency to a market that has not changed significantly in the last 20 years.”
Grant Jones, VP of Fusion LenderComm at Finastra, commented: “NatWest will now be able to specify and publish lender-specific deal information to Fusion LenderComm in real-time, while its lenders can view this data which was previously only periodically provided by fax from agents or through telephone or email queries from lenders. This not only brings improved operational efficiency for NatWest and its lenders but it also brings much needed transparency to the syndicated loan market.”