Lending technology provider Lenvi has launched automated verification software designed to detect double pledging and track cash movements in real time.
The software, known as ALVIN, uses agentic artificial intelligence to provide continuous loan verification across an entire portfolio.
Double pledging occurs when the same loan or asset is used as collateral to secure funding from more than one lender. The practice has attracted greater scrutiny following high-profile cases involving MFS, Tricolor and First Brands Group in UK and US securitised markets.
Lenvi said ALVIN would operate alongside its existing agreed-upon procedures audits, compliance services and standby servicing proposition.
The software can process data tapes or connect directly to an originator’s loan management system through application programming interfaces. It draws data from the source to give funders visibility across their funding lines.
ALVIN verifies loan documents, customers and pledged assets, allowing funders to monitor portfolios continuously instead of relying on periodic checks or samples.
Each loan is tokenised and assigned a unique digital fingerprint. The software alerts funders when it detects a loan elsewhere with similar or matching characteristics, allowing the case to be investigated.
It also tracks transactions from origination to repayment around the clock, seeking to confirm that funds are reaching identifiable customers.
Owain Chambers (pictured), director of capital markets at Lenvi, said: “Developing ALVIN was all about helping investors to confirm that what’s on paper matches reality.
“The recent cases with MFS, Tricolor and First Brands Group have naturally shaken the market and increased scrutiny of loan verification, particularly around the risk of double pledging.
“This software responds directly to that nervousness and helps detect any irregularities before they cause lasting damage.
“For originators, that increased transparency can also help build confidence among funders and provide a commercial differentiator in a market where investors want more assurance. The greater investor oversight can also save originators time by reducing the requirement to go through so many AUPs.
“We’re really excited to bring this software to market. There is nothing else out there that is able to provide this level of verification continuously, automatically and at scale across a whole portfolio, not just a sample.
“We’re already trusted by over 100 funders to step in when things go wrong, and now we’re adding another layer to that proposition by helping funders identify potential problems earlier and strengthen their oversight before they become bigger issues.”
Lenvi said it was in advanced discussions with a bridging finance provider about adopting ALVIN and appointing the company as standby servicer. Several existing standby servicing clients have also requested demonstrations of the software.
