Leverage with existing portfolio

Would you like to offer loan facilities against your wealth clients’ investment portfolio of fixed deposits, bonds, equities, mutual funds, insurance, properties and other exotic assets such as paintings?  Such Portfolio Financing or Lombard Loan, enable your clients to obtain financing against their existing portfolio to:

• Obtain liquidity & cash flow as needed
• Capitalize on new investment opportunities

To support Portfolio Financing business, the bank will need an advanced & proven solution to achieve :  

• Robust risk management controls. This enables your credit team to define an acceptable collateral list, single counter concentration, organise collaterals into different categories for ease of management, set valuation ratios, price caps, value caps, quantity caps, account counter concentration, etc
• Real-time or daily mark-to-market. As the prices of the collaterals fluctuate, it is important that the system performs real-time or daily mark-to-market, handles margin call and notify clients electronically of margin call.
• Comprehensive corporate action processing and automation.  Corporate action handling is important when you take shares as collateral.  Our system supports corporate action announcements, client notifications, standing instructions, portfolio valuation adjustment capability and election processing for a wide range of corporate actions.
• Competitive dynamic pricing capabilities.  For instance, a client may provide a basket of quality index stocks as collaterals initially and the credit team agrees to finance based on a certain preferred interest rate ; and suppose the client subsequently substitutes the quality collaterals with lower quality ones, the system will automatically detect the changes, and dynamically apply a higher interest rate.

Other features & benefits include :

• Streamlined back office operations with full maker-checker control, user security access control and audit trail

• Interfaces to credit bureaus, custodians, security static, price & corporate action feeds
• Add-on Collateral Scoring System.  This helps the credit team to set a list of acceptable collateral and haircuts based on fundamentals, liquidity and volatility

Optimai Portfolio Financing System is built upon our award-winning Optimai PRIME - Digital FinTech Platform for Capital Markets, Wealth and Banking.  Our team has more than 18 years of experience in providing quality solutions for banks, exchanges, fund management companies, stocks & derivative brokerages.