VERIFICATION AGENT
Trust, but verify
In platform financing, lenders often rely on data provided by the originator itself when monitoring their portfolios on an ongoing basis. While this information is checked for completeness and plausibility, there is no automatic independent verification of assets, cash flows and collateral.
With the LOANCOS Verification Agent, we take on this independent monitoring and verification role. We reconcile portfolio and payment data, identify anomalies at an early stage and thus create additional transparency for lenders and investors.
We focus on the following questions:
1. Does the asset exist – and has it possibly been pledged as collateral for other financings?
We allocate each asset to the respective financing lines and check for possible double financing.
2. Have payments been made and who made them?
Wherever possible, we reconcile payment information directly with bank data and verify recipients and counterparties.
3. Do data, documents and payments match?
We reconcile asset data, contracts and cash flows and identify unusual patterns.
Your advantages:
- independent view of the portfolio
- daily automated checks possible
- early detection of anomalies
- review of possible double financing
- clear escalation paths and regular reporting
Verification Agent: independent review of loan portfolios
The LOANCOS Verification Agent works independently of the originator’s processes. Depending on the agreed scope of services, we do not just check samples but review the entire portfolio automatically. Where possible, we obtain payment data directly from the bank. In addition, we can include information from independent registers as well as contract and collateral documents in the review.
Anomalies are examined by our credit specialists and clarified with the originator. Clients receive regular anomaly reports and verification reports. Material deviations are escalated immediately in accordance with the agreed procedures.
For implementation, we largely use existing data. After setting up the data and bank interfaces and an initial portfolio review, a parallel run follows. Ongoing monitoring then begins, with regular automated reconciliations and – if agreed – sample checks against original documents.
“Independent verification of data and payment transactions creates transparency where conventional plausibility checks reach their limits. Anomalies become visible earlier and lenders gain additional certainty for their decisions.”
Lars Schröter, Head of Market Development, LOANCOS GmbH
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