CULedger, a credit union-owned CUSO providing decentralized identity credential capabilities to credit unions, announced today a strategic partnership with FiscalHive, an artificial intelligence (AI)-based platform provider.
The partnership aims to streamline the loan participation process across the credit union industry by leveraging distributed ledger technology. The two parties are currently developing a proof of concept that will be made available for credit unions to pilot in 2020.
While CULedger’s MyCUID credential allows credit unions to easily identify members when they log in, walk-in or call-in to their credit union, it also is the base 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. 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.”
– John Ainsworth, CULedger CEO
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.
“Using the FiscalHive portfolio analysis tool, credit unions with excess liquidity will be able to create tailored loan portfolios. 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. “
– Sameer Sonalkar, CEO FiscalHive