an industry opportunity - lixi · lixi today is a collaborative member‐based non‐profit...
TRANSCRIPT
ANNOUNCING LIXI 2.0AN INDUSTRY OPPORTUNITYAN INDUSTRY OPPORTUNITY
What is LIXI 2.0?What is LIXI 2.0?
A fresh look at data messaging standards for the lending industry A renewed “language of lending”g g g A world’s‐first approach to ‘electronic guidebooks’ An industry opportunity A connected, communicating community Based on requirements and feedback from LIXI members
LIXI TodayLIXI Today Is a collaborative member‐based non‐profit organisation
Is the custodian of the standards developed with the lending p gindustry
Core objective is to enable improvements in efficiency
Has members from all areas of the lending value chain
Funding is from the industry by way of membership and license fees Funding is from the industry by way of membership and license fees
LIXI standards cover the breadth of transactions from lodgement through settlement to dischargethrough settlement to discharge
LIXI‐based messages are now universally used across the lending process by essentially every bank as well as most service providersprocess, by essentially every bank as well as most service providers
The Basis for Reform The Basis for Reform –– Members ViewMembers ViewFundamental requirements are based on input from LIXI Members via the working group process The fundamental cost and complexity of connecting to other
LIXI members is too highThe time complexity and cost of implementing change is too The time, complexity and cost of implementing change is too great
There has never been a LIXI Certification program, There has never been a LIXI Certification program, implementation guidelines, or supporting tools and services to make adoption easy
Lack of ability for lenders to publish change selectively and in real time to the broker channel
The Basis for Reform The Basis for Reform –– ObservationsObservations The current standard is flexible, not prescriptive, so the
‘standard’ has diverged between every lender and with every updated release
Rather than fostering innovation, divergent ‘standards’ at e t a oste g o at o , d e ge t sta da dsnow stifle it
Rather than enabling efficiency the lack of true Rather than enabling efficiency, the lack of true competition in standards‐based service delivery arguably inhibits ity g y
Overall objectives for reformOverall objectives for reform Reduce the costs of working with business partners along the
lending chain; Increase ability to bring new products to market and create
quick changes while maintaining differentiation;Enhance the industry’s ability to respond to regulatory changes Enhance the industry’s ability to respond to regulatory changesquickly and efficiently;
Protect the lending industry by providing an open, standards‐ Protect the lending industry by providing an open, standardsbased environment for commercial providers and suppliers.
The components of LIXI 2.0The components of LIXI 2.0True Standards Define every piece of data shared across the lending
industry – the Data Dictionary A universal super‐set data message standard – the CAL 2
schemaschema Conformance testing and certification to the standard
The components of LIXI 2.0The components of LIXI 2.0Electronic Guidebooks Contains all the business rules, data logic and print form
templates that are currently in manually generated and implemented guidebooksLender control over their own guidebooks Lender control over their own guidebooks
True standards enable efficient guidebook management Automatically reconfigure lodgement user interface Automatically reconfigure lodgement user interface
The components of LIXI 2.0The components of LIXI 2.0Change management for the Standards LIXI website for form submission, tracking and workflow A new Glossary of industry terminology Responsive to industry needs Simple vs. complex changes Monthly release schedule
ImplementationImplementation Commercially provided management tools – off‐the‐shelf
or custom solutions, using the Data Dictionary In‐house or outsourced maintenance Changes and updates in the control of lenders and their
business partnersbusiness partners Automatically reconfigure broker UI CAL 2 messaging ensures interoperability CAL 2 messaging ensures interoperability Ensure backwards compatibility to protect LIXI members’
existing investmentsg
LIXI 2.0 Strategic Solution ArchitectureLIXI 2.0 Strategic Solution Architecture
Lender SystemsSystems
Broker Systems
CAL 2 CAL 1.x
Gateway transformation
Loan assessment
Electronic Guidebook
transformation assessment
Lending policy and document templates
LIXI Data Dictionary
The Benefits of the SolutionThe Benefits of the Solution True standards enables licensees and their service providers
to easily assemble new guidebooks, maintain existing ones f i d di ib i llfrom its component terms, and distribute universally
Change management protocol will enable LIXI to keep pace with member requested changes in order to reduce licenseewith member requested changes in order to reduce licensee resource requirements and deliver certainty for licensee project timelines.
Certification of guidebooks to reduce the time, effort and cost associated with testing and conformance
The Benefits of the Solution (cont’d)The Benefits of the Solution (cont’d) Lender control over change No implementation coding, no time delay, no errors Low rollout cost, minimal impact on existing systems Common format which can be implemented across
different channels and delivers increased commonality of back end processes
Standards applicable across the lending chain Standards applicable across the lending chain Open standards empower competition in service delivery
What is the current status:What is the current status: LIXI has released the Data Dictionary and the CAL 2 schema Electronic guidebooks are being tested in a live environment The guidebook schema will be released by a LIXI working
group LIXI licensing agreement is available from the LIXI website at
Standards > LIXI 2.0 A new Change Management process has been implemented A new Change Management process has been implemented Products and services will be competitive commercial
offerings built on LIXI standardsg Testing and Certification will be rolled out out in 2014
LicensingLicensingChanges to the End User Licensing Agreement No divergent user‐specific versions of the standard Licensing of the electronic guidebook schema, where the
lender owns the IP in the guidebooks Open availability of guidebooks to authorised recipients Benefits
P it if f t ti Permits uniform conformance testing Lower cost of managing change, consistent quality of data
PricingPricingLIXI is not for profit, prices are related to LIXI costs and licensee benefits CAL 2 price is similar to CAL 1, with no double‐dipping EGB price is extra, only charged to the guidebook owner No charge for developers, or for intermediary routingBenefits
P i i d i d t b f i d it bl Pricing designed to be fair and equitable. Developers encouraged to use CAL 2 and the Data
Dictionary across every interface – a universal language ofDictionary across every interface a universal language of lending
Change management Change management –– for the standardsfor the standardsLIXI will manage changes to the Data Dictionary, with SLA’s Simple additions will have fast turn‐around Complex changes require some form of collaborative
information gathering, analysis and consensus Changes to the Data Dictionary will automatically generate
new schemas BenefitsBenefits Maintain the universal language Ensure members requirements are met, on a realistic Ensure members requirements are met, on a realistic
timeline
Change management Change management –– for the standardsfor the standards
Change Request Submission
Evaluate Request
Simple Change?
Define Definition, Metadata,
Business Rules.
Scheduled Release
yes
Begin Full Change
Management Process
Define Definition, Metadata,
B siness R les
WG Peer Review Ready to release?
noyes
Process Business Rules.
no
Change management Change management –– for guidebooksfor guidebooksLenders will be responsible for management of their own guidebooks LIXI will assist with guidebook distribution Changes will happen on any timeline the lenders (and their
business partners) agreebusiness partners) agreeBenefits Lenders have complete management control over changes Lenders have complete management control over changes
to their own guidebooks, and over the timing of distribution
ImplementationImplementation LIXI will provide boilerplates for the electronic guidebook and
for CAL 2 to CAL 1 transformation Commercially provided guidebook tools – with embedded Data
Dictionary and CAL 2 ‐ have been tested with several mortgage managers retail and wholesale lendersmanagers, retail and wholesale lenders
CAL 2 to CAL 1.x transformation with live lodgement to an existing CAL 1.x lender will be trialled early in 2014
Implementation “what work do I need to do?”Implementation “what work do I need to do?” Electronic guidebooks make aggregators life easy – the key
is managing relationships, not implementing changes Transformation makes lenders life easy – the key is
managing the process, not managing the implementation
TransitionTransitionLIXI recognises the critical nature of supporting legacy environments and managing change during the implementation period
CAL 2 CAL 2
L d S t
CAL 2
CAL 1.x
CAL 2
CAL 1.x
Lender SystemsBroker Systems
Testing and CertificationTesting and Certification Testing will ensure that Guidebooks are valid and that
CAL 2 data files conform to the specifications Certification process will be optional Automated conformance testing program
The Package ConceptThe Package Concept
Work InstructionsProcess Application
Application
Process Application
LMI Request
Prepare Loan DocsProcessing Status
Settlement InstructionsAssessment Metrics
LMI ResponseLMI Response …
…
Embedded GuidebooksEmbedded Guidebooks
Broker Guidebookd t i t- data requirements
- business rules- document templates
L d G id b kLender Guidebook- data requirements- business rules- document templates- document templates
Funder Guidebook- data requirements- business rules- business rules- document templates
Industry OpportunitiesIndustry Opportunities Wholesale and white label product distribution via
electronic guidebooks Cross‐sell, by aggregator or by lender LMI – true standards Outsourced services like doc prep – plug and play Credit reporting
S t t t th l f l di System‐to‐system – the language of lending Guidebook maintenance services B2B Guidebooks B2B Guidebooks
Summary and Next StepsSummary and Next Steps LIXI strategic focus – custodian of the standards, responsive
to industry Imminent implementation of CAL 2 Feedback is encouraged from those who plan to adopt
LIXI 2 0 in 2014LIXI 2.0 in 2014 Working groups for Data Dictionary, CAL 2, and Technical
ArchitectureArchitecture