Blockchain-enabled structured finance platform Intain announced the addition of a “verification agent module” to its admin platform at the Fintech Nexus USA, and UMB Financial Corporation is the first company to use the new tech.
The program allows institutions to process many loans with AI at once, which Intain said reduces errors, costs, and processing times.
Intain CEO and Founder Siddhartha Siddhu repeated his “boring blockchain” as a service mantra. They said the ease and accuracy of AI processing is another quill in the cap for blockchain-enabled underwriting.
“Intain is helping financial institutions discover the benefits of blockchain, not because it sounds sexy,” Siddhu said.
“But because our blockchain and automated AI services help companies become more efficient, more accurate, and more trusting of their processes, enabling them to grow and increase business engagement and their ability to help more customers.”
Faster processing, with greater transparency
The addition also speeds up processing times of complex structured finance administration, Siddhartha said, which has traditionally been facilitated by manual processing. UMB Financial Corp., banking partner of tradfi industry giants like Fidelity, is the first customer to activate Intain’s verification agent module.
Intain said its validation process is an end-to-end platform that enables financial institutions to more skillfully service transactions in the structured finance market.
The firm said institutions could use the Admin platform to increase their potential to become the preferred resource for warehousing-verified loan pools as collateral agents.
Intain believes that the private structured credit market will become a more attractive proposition for investors with greater efficiency and transparency. In their eyes, better price discovery will manifest a minimum viable deal size of $10-$20 million ahead of the public asset-backed securities market.
Securitize with smaller increments
This ability to securitize at smaller increments and cycle capital faster is one of the critical advantages of running verification and administration of loans through blockchain, Siddhu said. UMB serves as a corporate trustee for asset-backed securities across nearly all asset classes and recently climbed to seventh on the most recent league table compiled by the industry publication Asset-Backed Alert.
Kristen Moore, SVP asset-backed securities team lead at UMB, said they service transactions across many asset classes, and Intain’s Admin platform makes things faster, wiser, and more efficient.
“Every financial institution I’ve ever engaged with has wanted to move faster while maintaining and even improving accuracy,” Moore said.
“As a trustee for asset-backed securities, the hurdle has always been manual verification of loan data, which can lead to human error. Intain Admin will help us overcome that hurdle and continue building and maintaining trust with our clients.”
Related:
Intain said it strives to connect lenders with investors in the decentralized finance space, where lending institutions can raise capital by tokenizing their loan pools.
For investors, the goal is to create a primary market for the risk-priced structured credit instruments issued on the blockchain. In the future, a secondary market could provide liquidity through fractional trading settled in real-time on the blockchain itself.
Intelligent blockchains not disruptive
Intain is intent on building intelligent blockchains for transparency and efficiency in capital market transactions, the firm said, with an initial focus on structured finance.
Founded by financial services business and technology veterans, Intain aims to understand the benefits and risks – of technology in financial services.
“Blockchain in financial services has reached an inflection point where traditional financial institutions see the technology’s benefits and are investigating and beginning to consider its adoption,” Siddhu said.
“We’ve maintained our conservative and pioneering approach, well within financial regulations, and are perfectly positioned to perform as the de facto administrative platform and trust layer for structured finance. We’re not interested in being disruptive; we are dependable and results-driven.”
