The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Fintech

LenderComm brings loan servicing on blockchain

Taking blockchain proof of concepts into production is a slow process, but a new loan-servicing platform shows how banks could cut costs and improve service.

blockchain-network-780



Even after years of cost cutting, banks could still be much more efficient if they would only share more utility back-office infrastructure. It’s a simple idea: hard to do in practice.

The chief executive of one leading European bank tells Euromoney: “I believe the way to launch them is in-country, beginning with one partner and then attracting others, rather than by trying to start a shared utility with four or five banks from the outset.”

In May, Finastra – the big provider of next-generation software to financial services firms spanning retail banking, transaction banking, lending, and treasury and capital markets – offered an example of how this might happen.

The company had announced in October that NatWest would be the first bank to integrate its blockchain-based Fusion LenderComm platform to handle all the communication between an agent bank on syndicated loans and the often-large number of lending banks.

LenderComm is a concept that emerged from a Finastra incubator scheme in 2016. It operates on the R3 Corda blockchain platform. In May, three more banks came on to it, all of them French: BNP Paribas, Natixis and Société Générale.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree