CULedger announced today a strategic partnership with FiscalHive, Inc., an artificial intelligence (AI)-based platform provider to streamline the loan participation process across the credit union industry by leveraging distributed ledger technology.
Credit unions want to buy and sell loans from one another through a loan participation process, where one or more eligible credit unions share the risk associated with the loan by purchasing a portion of the loan from the originating credit union. As with all loans, proper and thorough due diligence is critical.
CULedger, a credit union owned CUSO, currently provides decentralized identity credential capabilities to credit unions nationwide. While MyCUID credential allows credit unions to easily identify members when they login, walk-in or call-in to their credit union, it also is the cornerstone form of authentication for its network of peer-to-peer digital exchange.
FiscalHive’s loan participation platform provides loan level data for every participation transaction along with dozens of pre-generated due diligence, delinquency and remittance reports. The platform includes an end-to-end participation transaction workflow for both buyers and sellers. This built-in, efficient process can help reduce loan participation transactions to less than one week from the current 4-6 weeks.
“Loan participations are extensively used by credit unions, primarily in member business loans and consumer mortgage loans,” said John Ainsworth, CULedger CEO. “The long-term benefit of this partnership with FiscalHive will allow
“Using the FiscalHive portfolio analysis tool, credit unions with excess liquidity will be able to create tailored loan portfolios,” Sameer Sonalkar
The two parties are currently developing a proof of concept that will be made available for credit unions to pilot in 2020.