Cync Software Launches Advanced Securities-Based Lending Solution for Financial Institutions

Cync Software, a leading provider of cutting-edge lending solutions for banks, credit unions, and other financial institutions, announced the launch of Cync Securities-Based Lending (Cync SBL) solution. With this launch, the solution, which has already demonstrated its success for over a year with a prominent Virginia-based bank, is now available to financial institutions nationwide. The comprehensive solution is designed to help financial institutions accelerate lending against domestic and international marketable securities while equipping them with advanced tools to mitigate risks and enhance operational efficiency. Cync SBL enables lenders to offer borrowers swift access to capital against a broad range of marketable securities—including stocks, Exchange-Traded Funds (ETFs), mutual funds, bonds, money market instruments, and Real Estate Investment Trusts (REITs)—as collateral.

“Lenders are increasingly turning to securities-based lending to diversify revenue streams and attract high-net-worth clients seeking quick access to capital without liquidating their assets. With Cync Securities-Based Lending, they can swiftly extend credit against a wide range of marketable securities while overseeing and optimizing the collateral portfolio to ensure risk mitigation, regulatory compliance, and efficient loan operations,” said Jennifer Ballard, Director of Client Services at Cync Software.

Cync SBL offers several key benefits for financial institutions, addressing the challenges of market volatility, borrower defaults, and asset concentration, while ensuring efficient operations and improved decision-making. Cync Securities-Based Lending will deliver the following benefits:

• Expand Lending Potential with a Diverse Range of Collateral: By allowing borrowers to pledge a wide variety of marketable securities, including stocks, ETFs, mutual funds, bonds, money market instruments, and REITs, Cync SBL enables lenders to extend larger loans and broaden their lending portfolio.
• Faster and More Accurate Underwriting: Cync SBL equips loan advisors with tools to accurately assess credit limits against a broad spectrum of marketable securities. With streamlined processes and data-driven insights, lenders can expedite underwriting decisions, ensuring quicker loan approvals and faster access to funds for borrowers.
• Advanced Risk Mitigation and Monitoring: The solution enables lenders to set Loan-to-Value (LTV) ratios both at the asset class and individual asset levels in line with risk policies. By enforcing maximum price limits, financial institutions can automatically exclude ineligible assets from the credit limit. Moreover, with portfolio monitoring at both individual and overall portfolio levels, financial institutions can identify borrowers approaching LTV thresholds or in default and mitigate concentration risk across their portfolio.
• Lend Against a Broader Range of Asset Types: For borrowers with assets beyond marketable securities, Cync SBL integrates seamlessly with Cync’s Asset-Based Lending (Cync ABL) solution, enabling financial institutions to extend credit against a variety of assets, such as accounts receivable, inventory, real estate, and government contracts.
• Complete End-to-End Solution for Securities-Based Lending: Lenders can simplify the onboarding process and enhance the borrower’s experience with the Cync Loan Origination System (Cync LOS). Additionally, banks can streamline the tracking of balances, interest calculations, and payment processing with Cync’s loan servicing module or by integrating Cync SBL with their core banking systems.

Based in Tampa, Florida, Cync Software has been delivering innovative lending solutions to banks, credit unions, and financial institutions for over two decades. Designed by seasoned finance professionals, Cync Software’s cutting-edge, data-driven solutions are crafted to revolutionize lending. With a user-centric design, Cync Software utilizes advanced technologies like artificial intelligence, cloud computing, and API-first architecture to supercharge lending processes and drive exceptional results.

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