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Company: Wolters Kluwer, Minneapolis, MN
Company Description: Wolters Kluwer Governance, Risk & Compliance (GRC) is a division of Wolters Kluwer, providing legal, finance, risk and compliance professionals and small business owners with a broad spectrum of solutions, services and expertise needed to help manage myriad governance, risk and compliance needs in dynamic markets and regulatory environments.
Nomination Category: New Product & Service Categories
Nomination Sub Category: Financial Services
 Nomination Title: Wolters Kluwer Lien Insights Reports
- Which will you submit for your nomination in this category, a video of up to five (5) minutes in length about the nominated new or new-version product or service, OR written answers to the questions for this category? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video.
- If you are providing written answers for your submission, you must provide an answer to this first question: If this is a brand-new product, state the date on which it was released. If this is a new version of an existing product, state the date on which the update was released:
New version of existing product, with significant search logic enhancements added in January of 2022
- If you are providing written answers for your submission, you must provide an answer to this second question: Describe the features, functions, and benefits of the nominated product or service (up to 350 words):
Total 350 words used.
A crucial issue for lenders in managing secured assets involves maintaining lien position on debtors’ loans. Lenders prefer to be in the first lien position because it can affect the loan interest rate and other factors. A loan where the lender is in second or third position means more risk to the lenders and usually results in a higher interest rate. If the lien position has changed since the loan was originated, the lender will have diminished recourse to recover any loss due to default. Additionally, the original interest rate does would not reflect this additional risk.
Clarity into individual debtors’ overall lien activity AND across one’s entire lending portfolio is essential in maintaining a healthy portfolio—and minimizing risk. However, conducting debtor searches one at a time is resource- and time-intensive, and still may not return accurate results. The right search logic is critical to getting the right information.
Updated most recently with enhanced search logic in January of 2022, Lien Insights Report generates custom, detailed data on a lender’s estimated lien position for each of its debtors, and insights into lien activity against each debtor. It uses proprietary algorithms to search for UCC (Uniform Commercial Code) liens against debtors, and then applies advanced data analytics and logic to estimate the file date order of liens for the lender. This calculates relevant factors to estimate lien position for each debtor.
Lien Insights Report pulls a list of debtors — and all UCCs filed on each — from public records, an alternative to retrieving the information manually, one debtor at a time. This saves time and eliminates the possibility of human error through transcribing issues. The result for lenders is a comprehensive, real-time view of lien positions across their entire loan portfolio.
In addition to automatically generating reports at a frequency preset by a user, Lien Insights Reports can be delivered through an Application Programming Interface (API) and integrated directly into a financial institution’s loan origination system. Changes in lien position resulting from a debtor’s activity automatically activate a notification to the lender, who can proactively take steps to mitigate risk.
- If you are providing written answers for your submission, you must provide an answer to this third question: Outline the market performance, critical reception, and customer satisfaction with the product or service to date. State monetary or unit sales figures to date, if possible, and how they compare to expectations or past performance. Provide links to laudatory product or service reviews. Include some customer testimonials, if applicable (up to 350 words):
Total 348 words used.
Wolters Kluwer does not divulge sales revenue, but the innovations built into Lien Insights Report have generated considerable market uptake the past 18 months from a wide array of lenders. One of the biggest market receptivity challenges this solution has successfully addressed is in drawing prospective customers’ attention to real risks they, as lenders, face in effectively managing their liens. Accordingly, we have leveraged the product as an educational tool. The average U.S. debtor has two active liens—25 percent have more than four. Across an entire loan portfolio, the typical lender may not know how many of their debtors have additional active liens.
Lenders also need to consider loan filing challenges. A lender could go onto a state filing website to terminate their filing, type in the wrong number, and inadvertently terminate a different lender’s filing. Or the initial UCC filing might have included an incorrect debtor name. Or lenders may not realize that liens in their portfolio may have expired. Any of these situations result in a lien that is essentially null and void, leaving no ability to collect collateral on a defaulted loan. COVID-driven defaults have only accentuated this problem.
If the lien position has changed since origination, not only is the lender at greater risk for diminished recourse to recover any losses due to default, but the original interest rate does not reflect this additional risk. Lien Insights Report is providing lenders real-time clarity into this activity, for each debtor and for their entire portfolio, including:
- Knowing the lien position of each loan;
- Understanding from where debtors are borrowing for their loans;
- Keeping abreast of loan expirations and terminations.
Armed with this info, lenders are better positioned in managing their secured assets. They learn sooner about changes in liens that can impact future negotiations with a debtor. They get insights on predictability, measuring of risk, and lien compliance that can provide a better understanding of loan risk—and whether taking action with a debtor is needed. All of these characteristics improve credit relationships and empower lenders, letting them to make better, more informed business decisions.
- You have the option to answer this final question: Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 141 words used.
The supporting documents provided in this award entry aim to further highlight and reinforce key points about Lien Insights Report’s distinguishing capabilities, market receptivity and efficacy in addressing lenders’ portfolio management needs. Included is a list of recent industry awards, a product sheet, and other background materials. Since Jan. 1, 2020, Lien Insights Report has garnered the following industry recognitions:
Lien Insights Report, Major Industry Accolades:
- Golden Bridge Award, Best Financial Services Offering
- American Business Awards: Lien Insights Report, Financial Services category (Silver)
- Best in Biz Awards International, Most Innovative Product Feature of the Year
- Globee Awards, Best Information Technology Software
- International Business Awards/Stevie Awards, Best B2B Solution
- One Planet Awards, Best Information Technology Software
- Golden Bridge Award, Best Technology Software
- BIG Awards for Business for Product Innovation
- Best in Biz North America Award, Best New Product Feature of the Year
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