[Editor’s note: This is a blog post from eOriginal. eOriginal is a Bronze Sponsor at LendIt USA 2017 which will take place on March 6-7, 2017 in New York City.]
As with so many aspects of our world today, the future of securitization is digital. Marketplace lending platforms know this as well as anyone. At eOriginal, we believe the first step in the transition process is education. Today, marketplace lending platforms can engage with investors and move assets to the secondary market digitally – securely storing, pledging, or securitizing through technology. With the right technology, digital securitization can be a competitive asset.
eOriginal’s white paper, “Creating Securitization eCertainty in the Secondary Market,” addresses the opportunities that exist through the use of evolving financial technology solutions, while taking a deep dive into the barriers of adopting as it relates to confidence and risk mitigation. As we have discovered at past LendIt conferences, confusion and questions still exist in the management of electronic transactions, and the standardization of asset pools through digital transaction management (DTM).
By taking the securitization process digital, confidence in the process increases due to the strict contract handling requirements in place at every step. In addition, risk is reduced and auditability is increased, to provide all partners with the comfort that investor-owned loan documents will meet funder requirements with verifiable security, compliance, and authenticity.
An end-to-end DTM solution, as described in our white paper, provides confidence and certainty throughout the lifecycle of an electronic asset, giving heightened transparency and real-time data across the various document types – and the underlying data that is associated.
How Can Digital Securitizations Alleviate Confusion?
The necessity for secure digital management of financial assets has never been greater. Strict requirements exist for the handling of electronic documents as part of digital contracts that are transferred or sold. Technology helps to eliminate confusion in the secondary markets by providing compliant applications that enable organizations to manage and monetize digital transactions with certainty.
To reduce costs and accelerate transaction speeds, fully digital processes are key. A fully digital transaction management solution also provides the ability to manage eAssets in a secure and compliant environment while ensuring the associated documents and underlying data are unaltered and authentic. Certainty, or eCertainty® as we call it at eOriginal, is critical to funding and overall valuation for organizations that need the ability to securitize or pledge assets on the secondary market. In addition, it defends the integrity of eAsset documents with proven legal enforceability.
As marketplace lenders become increasingly involved in the secondary market, it is crucial to enhance the confidence of investors through increased transparency and reduced risk, which was reinforced last year by our President and CEO, Steve Bisbee.
If you are interested in learning about the role and benefits of digital securitization, challenges to digitizing secondary market transactions, the importance of an end-to-end digital solution, and an example of how an innovator in this space has grown because of digital securitization, this white paper is a must-read.
Do you have additional questions? The eOriginal team will be at LendIt USA 2017. Please schedule a meeting with us at the conference to learn how our eAsset Management Technology enhances financial flexibility, mitigates risk and exceeds stringent digital lending compliance requirements.