PAiPER - LIBOR Repapering Platform

PAiPER - LIBOR Repapering Platform

Inspiration

Contracts repapering is a time consuming, manually intensive and largely disjointed process that impacts almost every department of a bank or financial institution. If not done correctly or in time – it exposes the bank to legal, financial and reputational risk.

Challenges of current state

LIBOR rates that underpin over $350 trillion contracts globally will sunset by mid of 2023
Millions of contracts & terms need to be risk reviewed, renegotiated & repapered
Repapering is still largely manual, error prone, paper based & tedious
Inefficient Client Outreach practices for contract negotiation & signature
No end-to-end integrated workflow solution exists

What it does

Document Ingestion
- OCR and Document Digitization
- Extract, Index and Classify
- Automate and Run at scale
Intelligent Automation
- Algorithmic identification of LIBOR exposure
- Machine generated Fallback Language suggestions
- Learn & Adapt based on human user feedback
Dynamic Case Management
- Maker-Checker process for oversight
- Configurable smart routing of cases
- Client Outreach & Integrated e-Signature solution

How we built it

We built a Pega based dynamic case management ecosystem powered by AI. This is an end-to-end repapering ecosystem which provides a well-orchestrated, dynamic case management solution that brings best of the breed technologies in a simple, plug-and-play, cloud native environment to reduce effort, and risk exposure. Every aspect of the repapering process from initial document ingestion to final customer signatures is covered.

Challenges we ran into

We initially faced challenges to highlight the Libor exposed phrases, showing fallback options to user and replacing those with recommended option. Later we resolved it by Pega's out of the box overlay feature to display the dynamic fallback options and leveraging robust algorithm to highlight and replace the Libor exposed phrases with selected recommendation. Also we initially faced challenges to capture customer acceptance on artifacts with changed rates, later we solved it integrating Pega with DocuSign to capture digital signature of customer on modified contract.

What we learned

We have learned the overall business of LIBOR, its transition challenges and geographical applicability (SOFR in US, SONIA in UK, ESTR in European Union, Saron in Switzerland, TONA in Japan etc.).
How to build a Journey centric approach to build an end-to-end repapering ecosystem to ensure rapid delivery.
How to minimize the overall turnaround time by enabling parallel approval process from Legal, Risk, Compliance teams using dynamic case management.
How to capture customer consent through electronic signature on modified contract leveraging DocuSign integration with Pega to support the new normal.