UK bank Natwest is integrating a new blockchain platform based on R3 Corda technology for use in the syndicated loans market.
It has become the first bank to go live on Fusion LenderComm, a distributed ledger technology (DLT) platform developed by a consortium of banks in collaboration with Finastra and R3. The blockchain-based platform aims to dramatically transform and streamline the global syndicated loans market.
Fusion LenderComm aims to revolutionise communication between lenders and agents using blockchain technology to assure messages are secure and confidential. The platform has been built by Finastra and is underpinned by Corda – R3’s distributed ledger technology.
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.”
Its first phase has focused on real-time position reporting between lenders so all those involved can see their records at any time and there is a roadmap to transform all aspects of syndicated lending from deal set-up and syndicate building through to settlement
Using the platform, NatWest will 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.
David E. Rutter, CEO at R3, said, “The syndicated lending industry relies on costly, manually-intensive processes, making it ripe for innovation with blockchain technology. Fusion LenderComm, powered by Corda, has been proven to address these issues.
“The solution delivers immediate efficiencies and reduces costs for both agent banks and lenders. We have enjoyed working closely with NatWest and Finastra along with the many other leading institutions involved in this project. Now the focus shifts to the next phase as together we bring Fusion LenderComm into production.”
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