Perpetual Corporate Trust extends Perpetual Business Intelligence Platform with new digital securitisation and treasury solutions

From

Richard McCarthy

Perpetual Corporate Trust (PCT) recently launched two new capabilities under its Perpetual Business Intelligence (Perpetual BI) digital platform – Securitisation Intelligence and Treasury Intelligence. This is in addition to the previously released Market and Credit Intelligence solutions delivered via Software-asa-Service (SaaS).

The new digital solutions are aimed at supporting our clients and industry to automate cumbersome processes and digitise deal execution and trust management, optimise funding and improve the investor experience.

Securitisation is one of the funding options for banks and non-banks, with deal data traditionally managed out of spreadsheets shared via email for all parties to analyse and manipulate, which investors have advised is inefficient and potentially poses security risks for sensitive data.

Moving beyond the spreadsheet

Perpetual BI’s new digital securitisation management and automation capability aims to address the challenges transaction participants currently face and significantly lessen potential cyber security risks for all parties. It offers a central point of reference where data is stored in a secure cloud environment and can be accessed and reviewed by all relevant transaction participants, eliminating the need to rely on email and spreadsheets to communicate sensitive deal information.

Richard McCarthy, Group Executive of Perpetual Corporate Trust said the new addition to the Perpetual BI platform highlights the important role digital platforms will play in overcoming operational inefficiencies, improving risk management and delivering continuous improvement benefits associated with deal and portfolio management.

“There has been continued engagement and demand for digitising components of the securitisation process. Data management, control around key processes and cyber security have been identified as significant risk areas by Australian regulators and are areas that will face growing scrutiny.

“Traditionally, investors have faced a myriad of challenges when it comes to reviewing new transactions coming to market and portfolio management. The process of managing data quality, consistency and manual manipulation of large volumes of data can be complex, especially when issuers bring deals to market and then upsize them, which duplicates the work and effort for investors. It’s time to move beyond the spreadsheet.

“Digitising components of the securitisation issuance, process and management of deals pre and post settlement will improve both the issuer and investor experience by leveraging the very latest secure cloud technology. Perpetual BI provides a solution to standardise, analyse and visualise data, while providing a central repository for the availability and distribution of consistent data to the market. For business and market participants, it will allow for improved operational efficiency, reduce risk and optimise securitisation program costs,” said Mr McCarthy.

Perpetual Business Intelligence Cloud SaaS platform

Perpetual BI is built on Microsoft’s Azure Cloud technology platform and utilises data warehouse, data lake, Cognitive Services, machine learning and visualisation user interface to deliver digital solutions to our clients via SaaS.

Perpetual BI launched Market Intelligence in 2017, built on 20 years of mortgage data, which helps the banking and financial services ecosystem to improve their financial performance and lower risk though data-fueled decision making.

It also allows financial institutions to benchmark their lending book against the Australian market or specific trusts to drive better analysis and decision making. Perpetual BI launched its second digital solution Credit Intelligence in 2018, which leverages cloud technology with standardised actuarial models built in collaboration between Perpetual and Deloitte to support clients’ needs to comply with regulators in the most effective and efficient manner.

Mr McCarthy commented, “In an ever-changing regulatory environment, it can be difficult to balance profit, risk and client needs. Perpetual BI delivers significant efficiencies by automating labour-intensive manual processes including APRA stress testing, APRA responsible lending (ARS/ARF 223) and regulatory capital (ICAAP/APS120) reporting, as well as financial loss provisioning for IFRS 9 reporting.

“In addition, banks and non-banks can use Perpetual BI to optimise their capital and identify new segments and business opportunities.”

Early adopters of the Perpetual Business Intelligence platform

Since launch, Perpetual BI has worked with market participants to ensure its capabilities are always at the appropriate level of usability and adoption.

New direct and digital non-bank lender Athena Home Loans (Athena) is an early adopter of the platform, signing up for the Perpetual Business Intelligence IFRS9 solution. Athena was looking to bring a fully integrated digital and direct proposition to the Australian mortgage market and turned to Perpetual to support its risk management, finance and reporting functions.

Jason Finlay, Treasurer at Athena Home Loans said access to fast, accurate data was essential for growth. “As a new player in the market we needed to make strategic decisions fast and as our loan book is still maturing, we are able to access Perpetual’s public securitisation data set to support in our decision making,” said Mr Finlay.

“We use Perpetual Business Intelligence’s modelling capability to validate our own hypothesis and get a real time understanding on credit losses on an ongoing basis for all our reporting requirements. Quick access to this information is critical to both our decision making and reporting requirements,” he said.

Rob Camilleri, Co-Founder and Investment Manager at Realm Investment House, another early adopter of Perpetual Business Intelligence said, “The Perpetual Business Intelligence platform gives a multiplier effect to our internal resources in analytics and a productivity gain of ongoing deal monitoring. The way we receive, store and analyse data is constantly under review and the Perpetual Business Intelligence platform is the tip of the sword in this area.”

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