Reducing Credit Risk

The demand for capital, its availability and smooth flow between entities is key to economic development and growth. Lenders and Investors in the form of Banks, NBFCs, Institutional Lenders, PE and VC firms and others are the catalysts that drive growth.

ROI, Asset protection and Transparency are factors that impact creditor confidence and further investment. The sheer size of the loans and investments and the attendant risks like misspends, defaults, diversions and frauds underscore the need for requisite controls and transparency. The credit risks and broader economic impact make it imperative that a transformative change is envisioned at the core of the banking system.

Early warning systems that instantly flag incongruities will serve to shield Lenders’ assets, that can so rapidly deteriorate into Liabilities and Non-Performing Loans.

New Money - Tokenized Deposits

The advent of Distributed Ledger Technology (DLT) has brought some novel concepts and digital asset management techniques to the fore. Central Bank Digital Currencies (CBDC) and Tokenized Deposits are newer forms of digital money that Central Banks and Fintechs are exploring, to address limitations of tradiitonal money.

Tokenized Deposits and the Smart Rupee : Technology can be leveraged to overlay some of the money (Rupees) in circulation  with Smart-features that allow for next-gen services around programmability, such as instant settlements, payment rules, escrows, fund trackability, control and others.

Introduction of the Smart Rupee in to core banking areas can reduce counter-party risk and help deliver innovative customer features and offerings. When applied to Loans and Development Finances, these can help bring about much needed Transparency and Accountability in fund deployment and utilization.

Spoole System’s TRAX platform offers innovative currency and digital asset management features that will enable Banks to offer a bouquet of next-gen services around capital flows.

Enterprises and Consortia  too can leverage TRAX to streamline and manage internal and cross-organization asset flows.