starktony0547

1

Reshaping Syndicated Lending A DLT Use Case
2
Challenger Banks Business Drivers and Success
Imperatives

Blockchain technology (within the broader
distributed ledger umbrella) has received a lot
of eyeballs over the last decade, moving beyond
the admiration of niche cryptocurrency fanatics
and into the mainstream conversation of experts
and investors, especially in the banking and
financial services space. Whether it is
Payments, PC (Property casualty) claims to
process in Insurance, Trade Finance, or
post-trade settlement in Capital markets, there
is a myriad of disruptive use cases being piloted
collaboratively by big banks and financial
institutions across the world. The global
blockchain technology market size is expected to
reach USD 1,431.54 billion by 2030, growing at a
CAGR of 85.9 from 2022 to 2030, according to a
new report by Grand View Research, Inc. As per
allied market research, the BFSI share of the pie
was valued at 277.1 million in 2018 and is
projected to reach 22.46 billion by 2026,
growing at a CAGR of 73.8 from 2019 to 2026.
This gives an idea of the monetary potential
that Blockchain technology can generate globally.
Challenges The global syndicated loan
business is dependent on archaic back-office
operations, administration paperwork, tax rules
and regulations across borders, transparency, and
trust issues, and integration challenges between
different members of the syndicate. The result
is a longer settlement duration, high overheads
between different parties - banks, borrowers,
agencies, regulatory bodies, and high expenses in
terms of fees, intermediaries, and documentation
charges.
3
Challenger Banks Business Drivers and Success
Imperatives
Syndicated lending potential While the
syndicated lending market has been slow to join
the technological revolution advancing other
areas of banking, attitudes across the sector are
rapidly catching up with current trends. A
recent Loan Market Association (LMA) study
confirms that over sixty percent of surveyed
members view fintech as an opportunity to
transform critical areas of the syndicated
lending process, such as document management and
overall operations. Blockchain technology or
its broader DLT umbrella is not a panacea
instead, it should be viewed as one of many
technologies that are part of a larger toolbox
((Biometrics Machine learning / predictive
analytics Cognitive computing Quantum computing
Distributed ledger technology Cloud computing
Robotics) that will help in reshaping future
financial services infrastructure.   Cigniti
Solution At Cigniti, we gauge the depth of your
Blockchain applications and help you derive the
best possible ROI from the technology. With our
deep expertise in digital assurance testing, we
use the latest, competitive, and evolving
technologies to help you bring efficiency
cost-effectiveness with easy adoption.   Interesti
ng?? Want to learn more, visit-
https//www.cigniti.com/blog/syndicated-lending-dl
t/
4