Blockchain Syndicated Lending Platform Integrated By National Westminster Bankbr>
UK-based National Westminster Bank (NatWest) has integrated a new blockchain platform for the syndicated loan market.
Established in 1968, NatWest is a major retail and commercial bank in the United Kingdom. It is considered one of the Big Four clearing banks in the UK, with over 960 branches and 3,400 cash machines. It claims to have more than 7.5 million personal customers and 850,000 small business accounts.
NatWest has become the first bank to go live on Fusion LenderComm, a blockchain platform for syndicated loans developed by blockchain consortium R3 and FinTech enterprise Finastra. Powered by Corda blockchain, the platform is designed to bring more transparency and efficiency to the heavily manual loan market. It reduces the cost and burden of agent-to-lender administration and enables lenders to see accurate information on-demand so they can optimize syndicated loan portfolios.
Fusion LenderComm will enable NatWest to publish loan data to the ledger and extend self-service capabilities to lenders. NatWest will be able specify and publish lender-specific deal position data to Fusion LenderComm, so individual lenders can drill down into the data without needing to query positions by phone, fax or email.
“We are excited about the possibilities that this platform offers to transform the syndicated loan market” said Trish Arksey, Lending Program Director for NatWest. “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.”
David E. Rutter, CEO at R3, said that 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,” said Rutter. “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.”