🤖Webinar - From Theory to Practice: Real-World Applications of AI in Asset-Based Finance - Register here

Securitization in the service of economic growth: Prometeia and CARDO AI launch an end-to-end solution for next-generation management and monitoring

In a market that is recovering but held back by issues of efficiency, transparency, and accessibility, Prometeia and Cardo AI join forces for an innovative solution aimed at managing and monitoring securitizations. A concrete response to the needs of banks, originators, servicers and investors.

Milan, April 3, 2024 – The year 2023 saw the European securitization market reach 213.3 billion euros, as reported by the Association for Financial Markets in Europe (AFME). In a global context of economic slowdown, this figure represents a 5 percent increase over the previous year.

Recognized by the regulator as a key element of the European financial architecture to support the real economy and overall financial stability, this instrument represents a meeting point between the banking system and the capital market. While on the one hand, it allows banks to free up capital and make new loans, it also offers investors access to a wide range of financial assets.

However, a number of critical issues persist that slow down its development and deployment: cumbersome manual processes, high operational risks, and poor accessibility to advanced information and metrics that make it difficult for practitioners to assess real risks and returns underlying the loan portfolio and securities issued.

In this context, Prometeia, a leading consulting, software, and research services company, and CARDO AI, a fintech company that develops advanced technologies for structured finance announce a strategic partnership to launch an end-to-end solution for managing and monitoring of securitizations. The technology represents a key element in unlocking the potential of the market by enabling banks to originate transactions more safely and quickly, investors to accurately assess risks and returns, and servicers to manage securitization vehicles optimally. All while meeting regulatory requirements.

By combining Prometeia’s expertise in credit risk modeling and financial analysis with those of CARDO AI in machine learning and big data analytics, an integrated solution is born that can offer efficient management of operations, from due diligence to valuation and reporting. This all-in-one solution is unique in the Italian market because it allows all the actors involved to access the information necessary for the management of the transaction from a single platform.

It adapts to a wide range of structures and asset classes and integrates easily into existing architecture applications. It enables reliable, always-available data and thus reduces operational risk by providing advanced metrics such as fair value and estimated expected losses to constantly monitor the performance of the operation.

“A well-functioning securitization market is critical to contributing to the recovery economy through the provision of credit to businesses and consumers. The collaboration with Prometeia aims to define a new standard for the management of these transactions through the use of innovative technologies,” comments Marco Masotto, Head of Product and Software at CARDO AI.

“We are excited about the partnership with CARDO AI. The combination of our expertise has
led to the creation of a unique solution that represents a step toward a more efficient and secure future for the market,” says Alessia Garbella, Partner and Head of Credit Intelligence, Optimization and Strategy at Prometeia.