Loan & financial assets brokerage digital trading platform

Case Study

Introduction

wideStreet offers a cross-jurisdictional, multilateral digital marketplace for unlikely to pay and non-performing loans (UTP & NPLs), open to sellers, buyers and loan servicers. They provide smart solutions for UTP & NPLs trades in the banking and non-banking sectors.

Banking-grade digital trading platform of UTP and NPLs portfolios case study - Introduction

Client

wideStreet TEONITE software house client

Services

  • UI/UX design
  • web app development
  • front-end development
  • back-end development

Sector

Loan & financial assets brokerage

The problem

A predicted increase in NPLs in the European banking system due to an economic downturn caused by COVID-19, combined with a considerable pressure from the European prudential regulators to reduce NPL ratios on the banks’ balance sheets create not only challenges, but also opportunities for the sellers and buyers of unlikely to pay and non-performing loans in the current market environment.

Banking-grade digital trading platform of UTP and NPLs portfolios case study - Problem

The goal of wideStreet‘s founders, Ksenia Gräfin von Bassewitz and Dr. Bernd Schmid is to standardise information and data across Europe, bring new buyers into the NPL market, and reduce the time and effort needed to dispose of NPL portfolios by building the first European fully automated front-to-back tripartite trading platform.

The Solution

Marketplace app available on widestreetmarkets.com is the first digital trading and auctioning platform implementing the EBA (European Banking Authority) NPL data standards.

TEONITE designed and developed the marketplace app with back-office management and the landing page.

Banking-grade digital trading platform of UTP and NPLs portfolios case study - Solution

The application enables market participants to bid for and trade UTP & NPLs on the platform. The application supports sellers, buyers, and loan servicers in their legal and financial due diligence by improving the quantity, quality, and comparability of NPL data.

Banking-grade digital trading platform of UTP and NPLs portfolios case study - Solution
Banking-grade digital trading platform of UTP and NPLs portfolios case study - Solution

NPL sellers benefit from the improved market pricing and access to a wide network of NPL buyers and servicers, while NPL buyers get assistance in quality assessment and valuation of the portfolio. The connection to loan servicers opens up the market to new investors and allows even for portfolios that are highly diversified across various regions & loan types to be offered in a serviced format via the platform.

Core aspect of the platform is security. Sensitive information and trading/transaction capacity require extra security measures. To address that, access to the platform is protected by two-factor authentication, then KYC (Know Your Customer) guidelines follow before full access to the platform is granted.

Banking-grade digital trading platform of UTP and NPLs portfolios case study - Solution

Technological summary:

  • entire frontend, backend and the database built from scratch,
  • the webapp utilizes React, Material UI and TypeScript,
  • REST API is done with Django Rest Framework,
  • the application uses Django Q for queuing and asynchronous task execution, which ensures a smooth flow of information and notifications sent,
  • exchange rates and currency conversion is served by django-money and fixer,
  • the individual portfolio data is imported directly into the database via XLSX files, using the back-office administration panel built in Django. This tool also allows full control over user accounts and auctions.

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