Fusion LIBOR Transition Calculator

Author: Finastra

Commercial Lending Corporate and Syndicated Lending
Validated

Legacy systems lack the ability to process ARR / RFR priced loans, given they weren’t designed to perform these calculations, and implementing complex system changes can be costly. The need to have a flexible service that can expand over time as these ARR / RFR methodologies evolve is more important than ever.

The Fusion LIBOR Transition Calculator independently sources the ARR / RFRs from external official sources such as the Federal Reserve Bank of New York for SOFR, then calculates rates –average compounded in arrears rate and daily noncumulative compounded rates, along with corresponding interest accrued amounts for a set of inputs.

Key solution benefits

Finastra’s Fusion LIBOR Transition Calculator is set apart from other offerings on the market by three powerful attributes.

  • A trusted methodology

The solution follows Finastra’s Fusion Loan IQ ARR Calculations which gives banks both consistent and accurate results, every time. The need to have an agile system is more important that ever so we’ve ensured there’s the flexibility to calculate the daily compounding rates for the whole period or only for the end date.

  • Seamless integration

The Open API based offering can integrate efficiently and seamlessly with legacy systems that are not prepared for the transition, thereby significantly reducing operational risk for banks. 

  • Future Proofing your business

As the world’s largest lending solution provider, we have the knowledge and expertise to continually expand the calculator service in line with the evolving market/regulatory needs, thereby future-proofing your business from any additional investments due to market developments related to this transition.