NPL Markets is leveraging modern design and best practice user experience to digitise the end-to-end deal management experience – resulting in faster and more efficient transactions for both buyers and sellers.
An innovative deal management experience
By Gianluca Savelli
Published Tuesday 19 November, 2019
NPL Markets is a European platform for trading non-performing loans and illiquid portfolios, supported by in-depth market insight for pricing illiquid assets across numerous jurisdictions and asset classes.
Going beyond a traditional auction platform, the independent marketplace is giving both buyers and sellers a common language through which to communicate – removing value-reducing information asymmetry and replacing it with high-quality, standardised data, for smoother and more efficient transactions.
With multiple deals now live, the platform is connecting buyers and sellers in more meaningful ways, enabling users to manage the end-to-end deal process in one place – without needing to leave their desk.
Intuitive user experience
The purpose of NPL Markets is to improve business prospects for both buyers and sellers. As with many technologies, the key to its efficiency has been to optimise the experience through a streamlined and intuitive user journey.
With NPL Markets, sellers simply upload their portfolio to the platform – mapping and transforming their data tape into a simplified EBA NPL template. Sellers can then review and amend their portfolio data tape before adding it to their private pipeline. The timing for each deal-phase, as well as any necessary transaction documents must then be provided prior to publishing (using the platform’s legal templates as required).
An alert is subsequently sent out to all investors who have been invited to participate in the deal. Using the on-platform analytics functions, investors can quickly assess whether the deal is of interest to them, sign confidentiality agreements and conduct due diligence on the platform. Investors are then able to make indicative and binding offers directly to the seller before closing the deal.
In this manner, the entire end-to-end deal management process can be managed within a single location, facilitating smart-business decisions – whilst freeing up time and resources for all participants.
The technology behind the simplicity
However, whilst the user experience may be remarkably simple, the science behind it is anything but.
The platform’s suite of next-generation technologies and algorithms have been carefully built by an expert team of portfolio traders, data scientists and technologists to provide users with the best-possible tools for optimised decision-making:
For banks, this includes the provision of cost-efficient data preparation and validation tools aligned with the EBA template, as well as the opportunity to use standardised legal documentation to reduce time and save legal fees. The platform also grants access to pricing and valuation tools, so that banks can easily determine a break-even sale price, whilst using the technology to design the most effective trade based on bank capital structure and expected risk provisions under different regulatory regimes.
For investors, the platform helps buyers receive a better quality data tape and assess transactions faster and more cheaply than before. In addition, investors can easily screen a much wider range of new opportunities, with data validation reports and loan-by-loan pricing outputs available to them at the push of a button.
Connecting the dots
Comprising a whole network of international banks and investors, the NPL Markets ecosystem is connecting the dots across the entire marketplace to help the market function more efficiently as a whole.
To find out more about our platform, and how it can transform your deal management experience, please visit our website to register for a free trial.
Heterogeneity matters: the benefits of loan-level investor reports for NPL transactions
Tuesday 10 March, 2020
Technical Paper: Regulatory demands benefit market for non-performing loans
Thursday 7 November, 2019