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NatWest Bank Launches Blockchain-powered Syndicated Loan Platform

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U.K.-based National Westminster Bank, commonly known as NatWest bank, has leveraged blockchain technology to launch a syndicated lending platform using blockchain consortium R3's Corda enterprise blockchain platform.

The blockchain-based solution called Fusion LenderComm, which will go live in November 2018, is built by fintech firm Finastra to streamline the communication between agent banks and lenders in the global syndicated loans market.

A syndicated loan is where the size and risk of a loan cannot be accepted by a single lender and a 'syndicate' of two or more lenders is required to spread the risk.

However, the problem arises in complex syndicated loan deals involving hundreds of lenders where the current support systems have been inefficient, costly to operate and heavily reliant on manual processes.

The new platform claims to reduce the amount of time taken to set-up syndicated loan arrangements and also cut cost of administration for lenders and improve transparency.

On the Corda platform, information is shared only at the transaction level between parties, so they are not placing transactions into blocks and sharing transactions with parties who are not involved.

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