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COLLATERAL RECONCILIATION SOLUTION

Collateral Management System which records the details of the collateral received, currency details, margin/haircut details and interest rates payables for cash collateral.

$40B Assets

The client provides financial services through more than 180 locations in the USA with total assets of $40 billion.

8
Collaterals

The client was able to track 8 types of collaterals with the Ethereum Blockchain based solution provided by us.

100% Transparency

The solution helps to manage any constraints on the collateral on the blockchain network to maintain 100% transparency with the customers.

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OVERVIEW

Collateral Management System which records the details of the collateral received, currency details, margin/haircut details and interest rates payables for cash collateral. Each collateral will be registered as per the federal norms and those details are entered in Collateral registration.In this highly competitive banking environment, Banks need to be responsive to the ever-changing customer needs and consistently exhibit clarity and transparency to earn customer trust. For Banks, collateral management is time-consuming and complicated by lengthy lending workflows.DreamzTech has developed a collateral management framework for one of our esteemed banking clients to address these complex challenges.To overcome issues with risk and time-sensitive operational aspects, we have used Blockchain as the backbone of this solution that is immutable, decentralized and built on Distributed Ledger Technology.

GOALS

  • Unification of data
    received
    from all equipment onto a single platform and automated interpretation.
  • Registering a sample for
    each
    machine with upper and lower reading limits so that alerts can be generated in case
    of
    abrupt fluctuations.
  • Process data and represent
    in
    the form of animated graphs and charts wherever possible for instant decision
    making.
  • Using Industrial IoT to
    monitor equipment health and provide scheduled maintenance, proactive and preventive
    maintenance.
  • Platform to view the
    current
    status of a machine and the ability to view its breakdown history.
  • The solution also provided
    the
    option to control machines from a user interface using PLC/SCADA and IoT.

Business Problems

  • Tracking of all collateral reconciliation against secure loan where savings bank account are kept as a collateral pledge.
  • Synchronization and reconciliation of collateral information available in the existing banking system on a secured platform.
  • Secured tracking of the lifecycle of individual collaterals.
  • No notification system was available for any payment related update on the loan account.
  • Transactions made through the loan accounts were becoming vulnerable to online fraud.

SOLUTIONS WE PROVIDED

  • DreamzTech has created the Ethereum Blockchain Smart Contract to track all the collateral reconciliation against each secure loan.
  • To help synchronization and reconciliation between the blockchain network and banking existing internal systems we have developed the process to invoke collateral information onto the blockchain.
  • Immutable ledger of each loan transaction has worked to trace the end-to-end lifecycle of each collateral on Ethereum Blockchain
  • The will send an instant email notification to the Bank Manager and Customer whenever any transaction is made and update the same on Ethereum Smart Contract
  • DreamzTech has developed end-to-end solutions where all transactions happen through a secure hardware wallet to prevent misuse of Ether.

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ABOUT THE CLIENT

Collateral Management System which records the details of the collateral received, currency details, margin/haircut details and interest rates payables for cash collateral.

HEADQUARTERS

United States of America

INDUSTRY

Banking

SERVICES RENDERED
  1. Corporate Finance: Initial Public Offerings, Private Equity
  2. Structured Finance: Syndicated Loans, Leveraged Loans
  3. Stock Exchange Market Infrastructure
  4. Clearing and Settlement
SERVICES WE PROVIDED

Dedicated Team

Deployed Business Analyst and Solution Architect in USA client location supported by a team comprised of Project Manager (PM), Tech Leads, Developers, Quality Analysts (QAs) in India. We have supported the Onsite-Offshore location model.

Consulting

After gathering requirements Solution Architect had created the workflow of the project and selected the technologies to be used. After a discussion between BA and QA Lead, test cases were prepared and validated by the client.

Project Management

Project Manager specified the in-scope requirements, cost, schedule, list of the deliverable, delivery dates and created a backlog of tasks in JIRA. The project execution plan was based on the Agile Scrum methodology.

Secure Code Repository

BitBucket (version control repository) was created for a safe and secure code repository of the project. We have used the SonarQube tool for Code Quality and Security. The client could see the visual progress of the solution.

Integration

Integrated Blockchain Smart Contract and enhanced web application with the bank’s existing collateral system in the AWS cloud. Integrated Ethereum Blockchain Smart Contract with MetaMask mainnet. Integrated Hardware Wallet for Blockchain Smart Contract.

Go-live & Maintenance

SIT and UAT was performed and took approval from the client to go live. After go-live, in the maintenance period, we have supported application enhancement along with SLA driven Level 2 & Level 3 support.

Approach from DreamzTech

The customer wanted a solution to manage medical worker compensation and their work assignment as well as individual patients on a single platform. The solution developed by DreamzTech integrates two platforms into a single functional one to manage the employee’s activity and compensation along with the patient history in the form of a case through the same platform. The solution is a multi-tenant platform with custom branding.

ANALYSIS

Onshore and offshore Business Analysts (BA) from DreamzTech discovered of underlying business needs after discussion with the client’s stakeholders, specified and organized the business requirements and worked with offshore Solution Architect to confirm and validate the requirements are being met properly.

PLANNING

The Solution Architect had created the workflow of the project and selected the technologies to be used. Project Manager (PM) specified the in-scope requirements, cost, schedule, list of the deliverable, delivery dates and created a backlog of tasks. The project execution plan was segregated into sprints based on agile methodology.

Deployment

The deployed project team comprised of Project Manager, Business Analysts, Solution Architect, Tech Leads, Designer, Developers, and Quality Analysts. The public Blockchain Smart Contract deployment in mainnet and collateral reconciliation related all functionalities were done successfully and deployed to the client’s cloud infrastructure and due support was provided.

THE BUSINESS BENEFITS

The Solution helped in tracking collaterals on Ethereum Blockchain. Using the solution, each collateral is traced as a digital asset to track the end-to-end lifecycle of a Collateral and act as a single source of truth of collateral on the blockchain network. The solution provided real-time collateral reconciliation as well as an immutable ledger of all loan transactions pertaining to savings and CD accounts. The platform manages the synchronization and reconciliation between the blockchain network and banking internal systems. It ensured transparency and visibility to the customer of the outstanding loan balance and real-time alert and notification system when the loan is fully repaid. This resulted in increased efficiencies in banking processes and improved customer satisfaction.

Key Application Features

asset management system Add Collateral

Add multiple collateral information for a loan. Data saved to the Ethereum network.

digital ad platform Search Collateral

Search collateral information via Smart Contract. Transaction history from the Ethereum network.

b2b travel portal Update Collateral

Update collateral information via Smart Contract. All interactions based on oraclized concept.

automated oil change Real-time Notification

Automated email notification to loan representatives and customers.

fleet management -asset management Close Collateral

Once the loan is fully paid and updated the same is done on Ethereum Smart Contract release of the collateral is initiated and the loan account is closed.

asset order manage Hardware Wallet & Event Logs

All transactions happen through a secure hardware wallet to prevent misuse of Ethereum. Immutable event logs to pinpoint any attempt of a breach.

Technology Overview

USER INTERFACE:

HTML5

CSS3

nodejs

web3js

BUSINESS LOGIC:

Ethereum

Solidity

Infura API

DATABASE:

MS SQL

OTHER TOOLS & TECHNOLOGY:

Visual Studio Code

Remix IDE

MetaMask

JIRA

BitBucket

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