Direct Assignment involves the pooling of homogeneous assets and the subsequent sale of the cash flows from these asset pools to investors. Securitisation and Direct Assignment allow for cash-strapped NBFCs and/or banks (Originators) to sell their asset portfolio to larger banks and NBFCs while keeping their skin in the game. This allows the Originator to recoup up to 90% of their capital while also earning a monthly revenue from their share of the portfolio and a small fee from the portfolio buyer as a management fee. This act has enabled large organisations to meet their Priority Sector Lending (PSL) obligations quickly and safely while ensuring Originators do not have to wait for the tenure to finish for having the capital to lend.
SIMSMART is a proprietary solution from SimSol for servicing the problems faced by Banks and NBFCs in their Direct Assignment deals. For the buyer side, our solution enables the customers to:
1. Create Originators in the system and data mapping.
2. Import/upload pool data, analyse and cherry-pick.
3. Deal finalisation.
4. Manage monthly activities for the life of the deal.
Acting swiftly and efficiently in cherry-picking is the most important phase of a deal, as time is of the essence because the originators usually share the same pool of data with multiple prospective buyers. SIMSMART is a robust application capable of integration with various systems. SimSol has received great praise for the efficacy of the solution.