(As published in Auto Finance News)
The solution stores authoritative copies of digital loan documents
Lightico is integrating Wolters Kluwer’s digital lending technology to offer secure storage of digital loan documents for securitizations and other transfers.
Lenders who use Lightico’s digital completion cloud can originate and service loans, manage insurance claims and open new financial accounts online, according to a Lightico release. The platform uses e-signature, digital identification and verification, document collection and payment to enable electronic transactions.
The Wolters Kluwer integration allows lenders who work with Lightico to create and store authoritative copies of digital documents, such as e-contracts, for use in the secondary market — for example, whole loan sale, collateralization and securitization.
Maintaining digital compliance
Many auto lenders use both paper and digital documents, creating a need for compliant solutions for digital loan management, Steve Meirink, executive vice president and general manager for Wolters Kluwer Compliance Solutions, told Auto Finance News. The eOriginal digital lending solution, which Wolters Kluwer acquired in December 2020, converts paper, wet-ink signature documents into secured, encrypted digital files, according to the company.
Through eOriginal’s eVault solution, digital financing documents are securely stored online and assigned to a single entity or person with authoritative access. Documents stored in an eVault are negotiable and transferable.
“What our eVault technology does is apply best practices to electronic loans to ensure that a lender can create, maintain and protect their priority lien interest in those investments,” Meirink said. “Our platform ensures a compliant, enforceable transfer of the legal ownership of the lender or secured party to a third party.”
Lightico worked with Wolters Kluwer to integrate the eVault technology and ensure digital, authoritative copies are compliant and ready for secondary market use, Lightico co-founder and CEO Zviki Ben Ishay told AFN. “We are able to offer more use cases to our customers, including the ability to trade those loan packets,” he said.
Once lenders configure their eOriginal credentials into Lightico’s system, every document that is completed and signed by the end consumer is transferred automatically to the eVault, Ishay said.
A streamlined approach
The Wolters Kluwer and Lightico integration is the second of its kind this month. Cloud-based software provider Inovatec Systems on April 1 announced it had integrated risk management platform Point Predictive’s artificial intelligence-based software into its loan origination system to more accurately predict borrower risk and speed loan approvals.
Access to digital lending tools has become increasingly important as more consumers transact online. Auto lenders have turned to fintechs to enable digital processes in a faster and more affordable way than building out their own solutions.
“From an auto finance perspective, there’s so many different parties involved. As capital moves … it’s much more efficient to have a common platform to transfer assets across the industry,” Wolters Kluwer’s Meirink said.
