08 Jun 2023
Summary
The German debt fund is regulated via a master KVG provider. In order to increase the team’s efficiency and fulfill the constantly rising regulatory requirements regarding transparency and data protection, they decided to completely digitize their loan origination, negotiation, and reporting process (internal & exter-nal). FinLoop´s software also enables the compliance officer and external KVG provider to monitor the processes in real-time significantly reducing internal reporting requirements.
Client onboarding and new financing requests management system
This study focuses on the solutions FinLoop provided for the German debt fund. Their top challenges included fostering a culture of data driven decision making and management, eliminating disjointed systems, and delivering digital experiences that are relevant and easy to use.The German debt fund manages a loan portfolio of €2.5bn consisting of 45 loans. The German debt fund receives many financing requests on a weekly basis which it has to work through with a very small origination team. In addition the team has to look after the existing loan exposures, which currently requires a lot of their attention. They receive many documents from their clients via outlook email and currently save regular reporting documents such as new asset valuations, rent rolls in a common company shared drive folder.
In order to provide KPI’s on the loan portfolio performance across the fund to senior management, the analysts have to update information in various spreadsheets and create on final overview on an ad hoc basis. The deal manager also has to provide new information to the loan servicing team and vice versa to keep up with possible defaults, loan extension requests etc., but processes are slow and often the latest information has not been updated or received by various teams.
The challenge
- Fostering a culture of data driven decision making and management, eliminating disjointed systems, and delivering digital experiences that are relevant and easy to use.
- Optimize reporting internally & externally with a small team and limited resources
- Support analysts in faster analysis and decision making for new loans
The solution
With the help of FinLoop CRE loan management software, senior management has implemented an organisational structure, where each new deal is allocated to a lead manager. The assigned lead manager is responsible for all communication with the client. He receives all information required by the debt fund through the FinLoop loan origination system, where the client uploads all information.Internal teams are all connected to the central data management system and receive instant notification of any updates. Information providers also receive reminders to upload the latest data
Benefits & achievements
- Bespoke reports are now available for different levels of management and different teams on a daily basis.
- With the new system, the German debt fund can also provide a client portal to its borrowers, where they can download and view the current interest waterfall, upcoming payments and current status of their loan.
- The borrower will receive any decisions and queries through the system, which creates an audit trail of all records. Senior management has full overview of the funds’ new potential financing leads across all lead managers.
- The digitalisation of company processes with FinLoop resulted in a 40% percent increase in team efficiency and 20% cost reduction to manage existing loans.
- Furthermore, it improved internal communications, faster optimization, and provided more time to concentrate on new deal origination for the business.
- It also reduced the teams burden of extra reporting, which is now automated, providing real time information to clients
