Tao Huang, CEO
Financial institutions are making a big push toward securities-based lending (SBL), giving their clients quick access to liquidity at lower interest rates and more flexible terms. SBL has proven to be an attractive liquidity option for investors because it gives them access to cash by collateralizing their investment portfolio while retaining their principal assets. Historically, wirehouses have offered SBL to their clients, however access to SBL has been limited beyond those few firms, in part due to the challenge of having to bring multiple independent financial institutions together and the inability for firms to monitor and mitigate risk, as well as the high cost of origination due to a manual and paper-intensive process. Finding a solution to these challenges is Illinois-based Supernova Technology. A leading-edge FinTech company, Supernova Technology provides a comprehensive SBL platform that connects banks and wealth management firms, automates the complex and cumbersome borrowing process and allows financial advisors to deliver holistic, goals-based advice to help a wide range of investors toward financial wellness.
Discussing the core competencies of the company, Tao Huang, CEO of Supernova Technology, elaborates, “Our cloud-based platform integrates real-time data from disparate systems such as loan accounting, collateral monitoring, and payment processing to drive seamless collaboration between all concerned entities.” The company’s solution comprises six primary modules—Origination, Servicing, Risk Monitoring, Collateral Management, Advisor Portal and Client Portal. These user-facing modules are powered by a robust set of calculation and integration engines, and Supernova Technology’s thought leadership methodology as it pertains to risk management and suitability of SBL. Supernova Technology’s end-to-end platform facilitates a streamlined workflow that enables the approval of qualified loans within minutes of applying when fully integrated. In addition, the platform’s risk monitoring capability gives advisors and internal risk personnel unprecedented visibility into loan and book level risks.
With our best-in-class technology platform we aim to connect banks, wealth management firms, and investors, helping our clients achieve their vision of lower-cost and lower-risk SBL liquidity solutions more efficiently
“Our solution also enables the provision of value-added services such as dedicated support portals for advisors and clients to assist a broader range of clients efficiently and cost-effectively,” states Huang. Supernova Technology’s SBL solution is positioned to serve a variety of financial institutions, which include banking institutions, broker-dealers, Registered Investment Advisors, and advisor technology solution providers. The solution’s flexible architecture and open API allow seamless integration with the client’s internal systems and other financial systems. To cater to the diverse needs of its clientele, Supernova Technology’s clients are able to choose between the all-inclusive platform or single/multiple module(s) based on their organization-specific requirements.
Supernova Technology has achieved proven success in helping large financial institutions grow their SBL business by modernizing their manual and paper-intensive lending processes. In one instance, the company helped a large bank streamline their SBL offering. Initially, the client provided all of their SBL services through paper-based processes, which caused a significant delay and generated significant costs. With its platform, Supernova Technology was able to help the bank improve its customer service and provide a much more streamlined SBL offering to their clients. Moreover, Supernova Technology offered its education and training programs, providing advisors with a thoughtful understanding of SBL and its appropriate uses, thereby increasing advisor adoption.
Looking ahead, Supernova Technology plans to drive greater collaboration with financial institutions to improve the customer experience by enhancing the platform’s integration capabilities. The company also aims to bolster its lending solution capabilities. “With our best-in-class technology platform we aim to connect banks, wealth management firms, and investors, helping our clients achieve their vision of lower-cost and lower-risk SBL liquidity solutions more efficiently,” concludes Huang.