Wolters Kluwer Compliance Solutions has unveiled its latest artificial intelligence (AI)-powered tool, dubbed iLien Borrower Analytics, to improve borrower risk due diligence.

Designed to help lenders streamline the processes of lien search and due diligence when onboarding borrowers, the new solution is part of Wolters Kluwer’s portfolio of automated lending innovations.

iLien Borrower Analytics leverages AI to analyse Uniform Commercial Code (UCC) search documents and produce actionable intelligence reports in a timely and compliant manner.

It also compiles key information about a debtor’s collateral assets securing commercial loans, including lien positions and other risk factors. This is in addition to public records data extracted through Wolters Kluwer’s iLien UCC search.

The tool generates an organised chain of filings, detailing the current status of collateral assets and parties for active liens.

The platform is designed to optimise the onboarding process by shifting the focus from internal staff to a technology-driven approach.

It is expected to significantly reduce the time-consuming and labour-intensive task of reviewing asset documents manually, providing lenders with quick and valuable insights based on UCC analysis.

Wolters Kluwer FCC lien solutions vice president and segment leader Art Tyszka said: “Asset descriptions may be inconsistent and scattered across documents. Proper lien analysis is essential in helping ensure that a debtor’s collateral is not already pledged to another lender.

“iLien Borrower Analytics is a revolutionary step in enhancing the loan lifecycle, improving the due diligence review, and delivering lenders the crucial analysis needed to serve their customers and protect against default risk.”

Wolters Kluwer Compliance Solutions offers risk management and regulatory compliance solutions for US financial institutions, including insurers, banks, credit unions, and securities firms.

As part of the Wolters Kluwer Financial & Corporate Compliance division, the company helps these institutions manage risk, meet regulatory obligations as well as gain critical insights.