Transparsoft’s Collateral Management Solution enables you to track collaterals like CDs, Loans, Debit and Credit status, etc. on Ethereum Blockchain. Using our solution, every collateral would be tracked as a digital asset to track the origin, the trail of records and act as a single source of truth of collateral on a blockchain network.
Smart contracts have been built to interface with a bank’s existing collateral system to tracking Secure Loan. These Smart Contracts were developed for optimizing minimum gas consumption for every transaction in the blockchain network.
DLT’s consensus model to register transactions helps eliminate the need for multiple messages between participants. This has the potential to reduce operational costs in managing collateral.
Our solution minimizes back-end functions and the demand for dispute management and accommodation, featuring fast settlement time. It also eliminates manually occurring errors and attached risks.
Based on Oraclize concept, our solution features the smart contracts which enables fetching the collateral information from existing system of clients.
On a blockchain network, the end-to-end lifecycle of each collateral with event log of each transaction can be traced with our solution.
The solution sends email notifications to customers and the loan representative one the loan balance reaches zero.
The solution is integrated with Collateral Management in which allocation logic is connected to regulatory mechanisms handled and triggered by the blockchain smart contracts and all the privacy rules maintained on off-chain. The blockchain nodes access the off-chain data and the rules by secured Web API. The financial institutes such as banks can see the real-time transaction data rather than a day-end view, it enhances the collateral usage among parties and develops more conversion with the help of discharging excess collateral of the account holder.
In the blockchain, each payment to the customer is updated in the loan account by smart logic and off-chain via Web API. When the customer’s loan balance reaches zero in blockchain, the platform triggers an email to notify the customer and bank manager that the collateral is free from the loan. This helps release the collateral within a short time and increase the scope to generate business with customer satisfaction.
A graphical view of the summary of collateral activities and statuses are provided by the platform such as Total Collateral Pledged, Collaterals at Risk, Overdue Loan Payment, Active Secured Loan, Loan Registry Activity, Type of Loan, Type of Loan by Loan Amount, KYC Pending Updates, Annual Pledged Collateral Activity, Overall Types of Collateral and Pledged Value.
The platform generates a customer's Risk Score on the basis of the customer’s input against the branch - graphical representation of the branch. The data can be drilled down which helps to branch-wise risk analysis and the details of a customer.