Finastra to power Belgium-based KBC Bank’s LIBOR transition

By Megha Bhattacharya

Belgium-based KBC Bank today selected Finastra for managing its transition through the upcoming interbank references rates changes. The Bank has chosen Finastra’s Fusion Loan IQ Alternate Reference Rates (ARR) module and Fusion LIBOR Transition Calculator for facilitating rates management and further its lending business expansion.

Melinda Christens, Business Program Manager LIBOR Transition at KBC Bank said, “We’ve been using Fusion Loan IQ for a number of years, and have been impressed with the way the solution is able to continuously adapt over time, adding new functionalities in line with changing regulations. The transition away from LIBOR is daunting for most banks, but with the help of Finastra’s solutions we’re able to continue to calculate rates and embark on a smooth transition.”

According to Finastra, Fusion Loan IQ facilitates commercial lending, alleviates the high costs of system and process redundancy within commercial lending operations, as well as increasing transparency, improving risk management and simplifying entry into new markets or business lines. It also aims to equip banks with core capabilities to issue new loans using the replacement rates. The Fusion LIBOR Transition Calculator is expected to assist KBC Bank to calculate their own ARR or Risk-Free Rates (RFR) and interest accruals. The calculator’s open API facilitates the integration with systems that don’t yet have a solution in place for calculating ARR/RFR rates, thus reducing operational risk.

“The shift away from LIBOR is the biggest change the market has seen in lending over the last three decades. It is also a once-in-a-lifetime opportunity to innovate and serve customers better, and so the need for a flexible service that can expand over time is a must,” said Robert Downs, Global Head of Corporate and Syndicated Lending at Finastra. “Our Fusion Loan IQ ARR module and the transition calculator are designed to keep pace as ARR methodologies and conventions evolve, protecting our customers from risks associated with complex system changes and ultimately future-proofing their businesses.”

Recently, Bank of Prairie du Sac, a community bank outside of Madison, WI, announced that it will upgrade its core operating system to Finastra’s Fusion Phoenix to future-proof its technology. The open, modern core built on Microsoft technology, cloud delivery, and seamless integration with other technologies provided by Finastra, will improve end-customer experience and support the bank’s growth strategy.