Wolters Kluwer Delivers Much Needed Risk Mitigation Tech Solution to Navigate CARES Act Loans

Wolters Kluwer has once again proven its industry leadership through its client centric response to the ongoing COVID-19 pandemic. This time its Lien Solutions business has responded to urgent client needs and established a technology solution specifically designed to help U.S. lenders navigate the influx of business loan applications, and associated compliance and risk mitigation requirements, resulting from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The Business Entity Search for CARES Act solution, offered by Wolters Kluwer’s Lien Solutions business, “conducts bulk/batch corporate identity searches to verify the business status of potential borrowers,” the company says. The report can be updated multiple times a day and can scale to high levels of loan applications in the coming weeks.

As previously reported, the CARES Act is an approximately $2 trillion coronavirus response bill from the U.S. government intended to mitigate the effects of COVID-19 on the economy. With approximately $377 billion earmarked for small businesses via the Paycheck Protection Program, administered by the Small Business Administration (SBA), some banks have already reported tens of thousands of commercial loan applications, each requiring specific due diligence to determine whether the borrower meets loan guidelines outlined under the CARES Act.

“The Business Entity Search for CARES Act solution allows lenders to outsource complex manual processes at high volume to help them service the rapid increase in applications and maximize their opportunity to lend to businesses that need relief,” Wolters Kluwer explained in a statement. “In addition to offering this solution to meet client requirements, the company is regularly updating lenders about state, county, and department of motor vehicle service interruptions on its dedicated COVID-19 Jurisdictional Update webpage.

“Our financial institution clients need to vet borrowers and deliver loans that will keep businesses afloat during this unprecedented situation, and we are on hand to support them,” said Raja Sengupta, Executive Vice President and General Manager for Wolters Kluwer Lien Solutions. “The Business Entity Search for CARES Act solution helps streamline the process to access CARES Act funds and keep our economy moving. We are pleased to be able to respond to vital market needs by providing this solution, which also helps ensure the necessary compliance and risk mitigation measures.”

COVID 19 Initiatives

Business Entity Search for CARES Act is one of several innovative solutions launched by Wolters Kluwer’s Governance, Risk and Compliance (GRC) division in response to the COVID-19 crisis – all of which we have reported on in recent weeks.

These include Paycheck Protection Program supported by TSoftPlus™, which helps banks and credit unions process loans to support small businesses with payroll funding. It also includes the COVID-19 Noteworthy Developments Bulletins, which aggregates COVID-19 related global regulatory changes, orders, notices and other informational updates for the financial services industry. The division’s legal solutions business has also launched a COVID-19 resource center to provide businesses and law firms with international, federal and state legislative updates.

Just yesterday Wolters Kluwer Compliance Solutions added an important new feature to its Paycheck Protection Program (PPP) Supported by TSoftPlus™ solution. Loan Application Importer, as the feature is known, allows lenders to quickly and efficiently import their loan applications into TSoftPlus without rekeying the data, saving time and reducing errors. This functionality makes it possible for lenders to process the backlog of hundreds or thousands of PPP loan applications they may have received, and provide urgently needed payroll funding to small businesses in communities during the COVID-19 crisis.

The solution, launched on April 3, has sparked an extraordinary level of interest from lenders. Many lenders typically process only a few SBA loans per year, and are now receiving hundreds or thousands of applications per day due to the PPP. Since its launch, hundreds of lenders have signed up to use the scalable Wolters Kluwer’s solution, which can quickly help them eliminate their application backlogs. “Using this TSoftPlus functionality rather than the SBA site is helping some lenders achieve as much as a 20 fold productivity gain, enabling them to meet the needs of their small business customers,” the company says.

The Wolters Kluwer Lien Solutions product suite, meanwhile, also includes iLien, a SaaS platform that serves a crucial purpose during this time of social distancing and work-from-home protocols. iLien provides one-stop access to more than 3,000 U.S. jurisdictions at the state and county level. The solution allows bank employees to search electronic records, and retrieve bankruptcy and litigation filings, corporate entity records, judgements, and existing federal and state tax liens. Because iLien is web-based, it can be accessed by any member of a lender’s staff and from anywhere.

Industry Leadership

Wolters Kluwer Lien Solutions’ leading position has been recognized by a number of independent organizations in the past year, with the company winning a record 14 industry accolades in 2019. In February this year the company announced it had won four major accolades from Finance Monthly magazine. The awards, all decided by an independent editorial panel, recognize the company’s leadership, as well as its leading technology solutions. Finance Monthly is a global publication from the Universal Media stable, providing news, comment and analysis, distributed to more than 195,000 people each month.

Raja Sengupta was named as one of the publication’s Game Changers for 2020. According to Finance Monthly’s editors, recipients of these awards help “to shape and transform the corporate landscape…a Game Changer introduces new ways of working and new methodologies that can revolutionize business and transform the customer experience.”

Meanwhile, Suzanne Konstance, Vice President of Product Management and Marketing for Wolters Kluwer Lien Solutions, was  honored with inclusion in the magazine’s Women in Finance Awards series. “The finance experts which feature in this year’s edition of the Finance Monthly Women in Finance Awards are women who consistently go above and beyond of what is expected of them, despite the challenges which the industry poses,” the magazine notes.

Finance Monthly also recognized the product superiority of the company’s technology solutions. Both iLien Motor Vehicle and Portfolio Sync have been named “Product of the Year” in the magazine’s hotly contested FinTech Awards, 2020.

Wolters Kluwer Lien Solutions, part of the company’s GRC division, describes itself as “the leading technology and service provider of comprehensive lien management, debtor due diligence, monitoring, and risk management solutions to financial professionals.” The iLien suite of products addresses solutions for asset-backed loans, real-estate, and vehicle title processing and management to help simplify complexity in lien lifecycle management, resulting in more confident lending decisions.

Author: Eleanor Hazelton