Lending technology provider Lenvi has launched new automated loan verification integration software, known as ALVIN, to tackle double pledging and track money in real-time following a series of high-profile fraud cases in securitised markets in the UK and US.
ALVIN, which is built on agentic AI, is the first software tool in the market that can provide continuous, automated loan verification across an entire portfolio, bringing a level of oversight and reassurance to funders previously unattainable and helping them identify potential issues earlier.
Double pledging – where the same loan or asset is used as collateral to secure funding from more than one lender – has become a particular concern for investors following recent high-profile cases including MFS, Tricolor and First Brands Group.
ALVIN sits alongside Lenvi’s existing AUP audits and compliance services, and means that, together with its standby servicing proposition, Lenvi provides the most robust end-to-end protection for capital market investments available.
The software can consume data tapes or connect directly to originators’ loan management systems via APIs, ingesting data at source to provide visibility across all funding lines. It verifies every loan document, every customer and every pledged asset, allowing funders to monitor on an ongoing basis rather than relying on periodic or smaller-sample checks.
Each individual loan is tokenised with a unique digital fingerprint. If a loan with similar or matching characteristics is identified elsewhere, the software alerts funders instantly to facilitate further investigation.
ALVIN also provides real-time visibility of cash movements, tracking transactions from origination through to repayment on a 24/7 basis to ensure funds are reaching legitimate, identifiable customers.
Owain Chambers, Director of Capital Markets at Lenvi, explains:
“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 is already in advanced discussions with a bridging finance provider to adopt ALVIN alongside appointing Lenvi as standby servicer, with several other existing standby clients also requesting demonstrations of the software.
