Pirum are pleased to announce the completion of our new Loan Release functionality which allows Pirum clients to fully automate the release process for their new loan instructions.
As part of their risk management the majority of Pirum’s lending clients require pre-collateralisation of their new loans before releasing their instructions to market, with the collateral usually received either a day before or on the day the loan is due to settle. Managing this process is often both manual and time consuming, requiring clients to monitor separate sources of information to confirm collateralisation (Exposure reports, Tri-party Collateral reports etc.) before manually releasing the new loan instructions from their system. This can lead to both long delays between collateral being received and loans being released, and also creates a risk of loans being released in error leaving the client exposed.
Pirum’s new loan release functionality works in combination with our popular Exposure and RQV services to fully automate the release cycle for new loans. From the moment new loans are booked in the clients systems Pirum calculates the collateral required and automatically compares this with the collateral received, either bilaterally or via Tri-party accounts, to determine when the loan is collateralised and can be released. When loans are ready to be released a message will be sent from Pirum directly to the lenders system triggering the loan to be released for settlement. This calculation is performed continuously throughout the day as both new loan data and updated collateral information is received, significantly reducing any delay between collateral being received and loans being marked as collateralised and released.
Where there are multiple new loans to be instructed on the same account Pirum’s Loan Release service will automatically prioritise which loans to release first based on the fully customisable criteria agreed with the lender, ensuring the highest priority loans are always instructed first. All pending new loans are displayed in a front end GUI with the current prioritisation order and current collateralisation status. The new GUI also enables users to perform overrides to both the release priority and release status of new loans on either an individual or bulk basis, with full maker-checker functionality utilised to ensure any manual action require input from two approved users and a full audit trail provided of all loan releases and any manual user actions.