Monitor on-lending security interest with truHypothesys Risk Solutions
Why you need our Risk Solution
With the alarmingly lack of robust systems to trace loan receivables hypothecated and loan assets securitised or assigned by retail-focused NBFCs, the financial sector is left with a critical oversight that leaves the door wide open for potential fraud and misrepresentation.
Main Concerns
Compromised Due Diligence
Lack of transparency makes it nearly impossible to detect inconsistencies or fraudulent activities committed by on-lending NBFCs. Banks and other lenders are at risk of unknowingly accepting pseudo security or compromised loan assets.
Hidden Financial Liabilities
This systemic weakness may conceal deeper, more insidious problems within on-lending NBFCs, such as artificially inflated loan books and exaggerated book debt figures.
Ripple Effects
The consequences of these vulnerabilities extend far beyond individual transactions and can threaten the stability of financial institutions and trigger wider market disruptions.
Regulatory Blind Spots
Current oversight mechanisms are inadequate to address such issues, leaving regulators and investors in the dark about the true state of NBFC assets and liabilities.
Erosion of Trust
As instances of fraud or misrepresentation come to light, they undermine confidence in the entire NBFC sector, leading to credit crunch or market instability.
Risk of fraud in loan portfolios is real, can you afford not to have this protection?
You need a rigorous, standardised tracing systems for loan receivables and securitised assets that offers enhanced due diligence processes that can detect inconsistencies and potential fraud and allows greater transparency and reporting requirements for NBFCs including improved regulatory frameworks to close existing loopholes.
truHypothesys Risk Solutions can decisively protect wholesale lending institutions, investors, and the broader economy from such hidden threats.
Check out our products customised to suit your requirements.