Collateral

Case Study

Business as usual CSA processing

The bank had a fully manual process for collecting
collateral data, that had been proven to be inaccurate
and time consuming.  Logical Construct fully onboarded their legacy contracts and provided a trusted, accurate source of ongoing data, feeding their core collateral data flows.

BENEFITS

 

In addition to accurate ongoing automated collateral data, the client now enjoys the benefits of the underlying platform: being able to run ad-hoc reports, for example to identify all contracts with negative interest rates, or those affected by benchmark reform.

Data Points Per CSA

scans processed

Live Operations since

CHALLENGE

The bank needed a solution that could handle the complexity of collateral schedules, ratings based thresholds, interest rates and other key clauses at a granularity suitable for processing using collateral management processes. In particular the handling of umbrella or fund agreements with differing term groups was a key requirement.
The client was looking for a fully outsourced operational process, where they could manage access using their own single-sign-on (SSO) and integrate with their entity static data, feeding the output directly into their operational data stores.
SOLUTION
Logical Construct was selected through a competitive RFP process as the only ready-to-use solution capable of managing the complex data extraction requirements and handling umbrella agreements and amendments correctly.
The Lyncs system was rapidly deployed using pre-built data models and extraction to onboard the legacy agreements using the built in optical character recognition before the data was extracted using advanced language processing and fed into the banks in-house systems.
Once all clients were fully onboarded, the process switched to business as usual amendment handling and new client onboarding, with the system used in the daily operational flows.
N

Onboarding thousands of legacy contracts

N

Extracting complex collateral schedules

N

Integrated with banks SSO

N

Integrated with banks entity data

N

API feed to collateral platform