- Federal Bank to leverage CredAvenue’s data-driven and real-time approach for management of its Asset-Backed Security (ABS) & Mortgage-backed Security (MBS) pool assets
Federal Bank has tied up with institutional debt platform, CredAvenue for the portfolio management of its securitization book. The arrangement will help Federal Bank digitally monitor its ABS & MBS pool assets, enabled by CredAvenue’s end-to-end securitization and portfolio buyouts and fulfilment solutions platform, CredPool. The partnership entails CredAvenue providing post-transaction fulfilment services and portfolio management for its Direct Assignment portfolio.
Post-transaction fulfilment services are currently manual, and evaluation of asset quality is carried out only at the end of each quarter. Through the partnership, Federal Bank intends to utilize CredAvenue’s technology for real-time evaluation and digital monitoring capabilities for its securitization book.
CredAvenue’s pooled transaction fulfilment platform has been supporting a host of leading banks. The platform is helping banks & NBFCs meet prevailing and new regulatory guidelines pertaining to securitization and direct assignment.
“The kind of environment we are in, it is always important to look for the right opportunities. Though we have scope to grow via the inorganic route with the right kind of mix, the platform capability is important to manage such a portfolio. This arrangement will help Federal Bank in standardizing and automating the securitization portfolio. Additionally, it will help the bank to evaluate and invest in the right opportunity based on the risk appetite,” said Shalini Warrier, ED & Head Retail Business, Federal Bank.
“We provide a comprehensive debt ecosystem for originators (NBFC’s) and provide a complete fulfilment solution for all the lenders that are associated with us. Our technology has the capability to provide customized solutions based on each bank/lender’s requirements for their portfolio management. Our team ensures a quick and seamless integration with an easy-to-use interface for our partners,” said Gaurav Kumar, CEO, CredAvenue.
CredAvenue is a global pioneer aiming to revolutionize and deepen debt markets. It is the only end-to-end unified digital platform for discovery, trading, execution and fulfilment of all debt solutions. CredAvenue aims to successfully capture 60-70% of the debt market. The platform enables wider participation in the debt markets, thereby helping correct its currently skewed structure wherein top-rated (AA and above) have access to more than 80% of the debt market.
CredAvenue is India’s leading enterprise debt marketplace that connects enterprises with lenders and investors. It is a global pioneer that aims to revolutionise and deepen debt markets and is the only one of its kind in the world to provide a comprehensive debt product suite to all its borrowers. The organization has a portfolio of 5 platforms catering to every requirement of both borrowers and investors –
- CredLoan (Loan Platform) – Term Lending and working capital solutions for enterprises
- CredCoLend (Origination platform) – For banks and NBFCs for co-lending partnerships
- Plutus (Bond Platform) – Bond Issuance and Investment for institutional and retail participants
- CredSCF (Supply Chain Platform) – Trade Financing solutions
- CredPool (Pool Platform) – End to end securitization and portfolio buyouts
In addition, the company also offers portfolio management and monitoring services as a SaaS offering to its borrowers and lenders.
CredAvenue currently has over 1500+ Corporates, 750+ Lenders and has facilitated debt volumes of over INR 65,000 Crores. CredAvenue is an organization on a mission to deepen and power the $120 trillion global enterprise debt market to unlock a GDP multiplier and create massive economic value.