Structured Finance is one of the last banking activities which still implies a lot of paper-based tasks and intensely demanding handwork. So far, this singularity could be explained by the few number of deals signed each year and their tailor-made specificities. However, at least 90% of the facility agreements are already standard: schedules, fees, covenants… and thus, could lead banks and investors to highly optimize their processes.
Therefore, is the true reason for the low digitization not a lack of shared services along the credit chain? Today, all parties to a deal have their own systems and communicate together through unstructured and scattered channels: mails, fax, email… Which leads to reconciliation issues, loss of critical data, and a lack of global trackability.