Smart Contracts have been developed to interface with bank’s existing collateral system to track Secure Loan. The Smart Contracts were developed optimizing minimum gas consumption for each transaction in 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.
In our solution, the smart contracts fetch the collateral information from client’s existing system based on Oraclize concept
The solution can trace the end-to-end lifecycle of each collateral with event log of the each transaction on blockchain network
The platform is integrated with Collateral Management where allocation logic pertaining to regulatory mechanisms maintained and triggers by blockchain smart contract and all private rules maintain on off-chain. Blockchain nodes access the off chain data and rules by secure Web API. Financial institute like bank can see real time transaction data instead of day end view, it improves the collateral usage between parties and generates more liquidity with the help of releasing excess collateral of the account holder.
Each payment to the customer loan account updated in blockchain by smart contract logic and off-chain via Web API. Once customer loan balance become zero in blockchain then platform will trigger email to notify customer and bank manager that collateral is free from loan. It helps to release the collateral within a day which helps to increase customer satisfaction and scope to generate more business.
Platform provides the graphical view of the summary of collateral activities and status (like as Active Secured Loan, Total Collateral Pledged, Overdue Loan Payment, Collateral at Risk, KYC update pending, Annual Pledge Collateral Activity, Loan Registry Activity, Type of Loan, Overall Types of Collateral and Pledged Value, Type of Loan by Loan Amount)
Based on customer’s input, platform generates Customer’s Risk Score against the branch - graphical presentation of branch data can be drill down which helps to monitor the customer details and branch wise risk analysis
Single source of Truth of collaterals
Bank is able to trace end-to-end lifecycle of Collateral
Real-time collateral reconciliation
Transparency and visibility to the customer of the outstanding loan balance
Immutable ledger of all loan transactions pertaining to savings and CD accounts
Real-time alert and notification when loan fully repaid
Synchronization and reconciliation between the blockchain network and banking internal systems
Increase efficiencies in banking processes & Improved customer satisfaction