CrossLend and solarisBank have formed a strategic partnership to offer digital and fully automated loan securitisation.
To support the partnership, it was revealed solarisBank acquired a minority stake in CrossLend during its funding round in March.
The partnership?will enable solarisBank to establish a balance sheet light model. This service will generate loans in a manner which passes them onto investors directly or with a delay and without putting long-term strain on the bank balance sheet. A launch for the new solution has been earmarked for the first half of 2019.
By using CrossLend automated securitisation solution, the new model will be able to maximise transparency of securities and keep transactions low. This will enable the securitisation of securities worth between ?20 and ?100m, instead of the traditional ?500m.
To support the processes between the two companies, solarisBank will use the CrossLend platform to purchase and securitise loan portfolios. This will enable solarisBank to reach optimal return on equity value and once this has been attained, the balance sheet light model will begin to automate securitisation.
solarisBank CFO Alexander Engel said, “The Balance Sheet Light model is revolutionary. As a platform, we match supply and demand in the credit sector. At the same time, we maintain the flexibility to hold loans thanks to our banking license and can actively manage our balance sheet. With this approach, we can maximise the efficiency of our equity and make the securities market much more efficient and transparent.”
Founded in 2016, solarisBank, which has a full banking license, provides digital banking, card services, credit services, payments and escrow API solutions. solarisBank is used in seven countries and by 60 corporate clients, but this is expected to hit 100 by the end of the year, according to the company.
The company provides banking technology to help other businesses to offer fully compliant financial services for their customers. Companies are able to pick and choose which banking services they want, which include bank accounts, KYC services, algorithmic scoring, transactions, and payment cards, among others.
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