The Innovation of Standby Services

The Innovation of Standby Services

26 November 2019

Lenders are often asked to implement a standby service as part of a funding requirement. The traditional standby service market can be seen as archaic as some standby services are asked to step in after 90 days.

While any standby service is designed to provide peace of mind in the unfortunate event of a lender ceasing to trade, or withdrawing from the market, the traditional approach is old-fashioned, cumbersome and time consuming to set up and maintain. The process of extracting the data and then uploading it to the standby servicer with a data tape is archaic, especially in an era where it is possible to transfer information via the internet. Remote access via a VPN, or two way authentication means data transfer is secure and doesn’t require the physical transfer of data.

From the point of invocation or when insolvency is triggered, to having full control of the loan portfolio, systems and processes, and being in a position to service existing customers, a hot step-in will take just 30 days. By adopting a technology led approach and working to integrate the lender’s systems with the standby servicer, it means the transfer of data is significantly faster, as well as more efficient and cost effective.

Manually carrying out the same process with tapes; extracting data and then migrating it onto the standby services own systems, cannot be done in the same amount of time. A hot standby also means the amount of time needed before the service can go live is significantly  reduced. A hot standby provides a seamless recovery for clients while also complying with FCA regulations.

By working closely with the lender from the start and staying in regular communication with them, a hot standby builds a strong foundation of trust between all parties. 

“The technology, communication, speed of delivery and continuity of service means hot standby will become the industry norm,” said Will Ellis, Sales Manager at Equiniti Credit Services. “Those companies benefitting from it now will find themselves ahead of the competition who are slow to innovate.”

TALK TO US TODAY

Contact Equiniti Credit Services to find out more about Standby Services.

Contact Us

We have detected that you are in United States. We think that Equiniti US would be more suited to deal with your needs.