CULedger and FiscalHive announce a strategic partnership to change the loan participation process for credit unions
DENVER, CO (November 21, 2019) — 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 credit unions to provide complete visibility of all loan data for buyers and sellers and automate the due diligence process through CULedger’s trusted permissioned distributed ledger network of digital exchange.”
“Using the FiscalHive portfolio analysis tool, credit unions with excess liquidity will be able to create tailored loan portfolios,” Sameer Sonalkar of FiscalHive explained. “By integrating MyCUID into FiscalHive’s AI platform, buyers of the loans will receive key information about the loans they participate in without the seller releasing competitively valuable information. In addition, digital signing, using MyCUID, provides higher levels of security and compliance. “
The two parties are currently developing a proof of concept that will be made available for credit unions to pilot in 2020.
About CULedger
Denver-based CULedger is a credit union-owned CUSO that is creating the premier platform of digital exchange for financial cooperatives globally. In working through a national consortium made up of credit unions and trusted industry investors, CULedger has pioneered new developments related to global self-sovereign digital identity that will further enhance the trust credit unions have with their members. CULedger provides advantages to credit unions and their members by reducing risks associated with cybersecurity and fraud, improving member experience, streamlining internal processes and reducing administrative and operational costs. To learn more about CULedger, visit www.culedger.com or follow the company on the CULedger blog, LinkedIn or Twitter.
About FiscalHive Inc.
FiscalHive’s artificial intelligence (AI)-driven loan participation platform increases the data transparency, eliminates and digitizes manual steps and provides out-of-the-box reporting and analytics to help credit unions perform loan participation transactions quickly, securely and transparently. Credit unions can manage their balance sheets more efficiently using the FiscalHive platform. FiscalHive’s principle offices are located in San Jose, CA. For more information please contact Sameer Sonalkar, sameer@fiscalhive.com .
