TCS LIBOR Transition Workbench©

www.tcs.com

After the 2012 LIBOR manipulation scandal, financial regulators announced the system serving as the key interest rate benchmark for several major currencies would be phased out by 2021. Hence, across the globe, banking and financial institutions are required to roll out multiyear programs to adopt a new set of risk-free rates and remediate impacted business functions. The transition to the alternative reference rates demands considerable efforts from banking and financial institutions to assess impact, amend contracts, and update systems.

The TCS LIBOR Transition Workbench© is an AI-based platform that aims to make this transition a pleasant experience for enterprises by enhancing their human capabilities with best-in-class cognitive solutions for contract remediation. The platform automates end-to-end contract remediation process, starting with identification of contracts that need remediation all the way to revised contract execution. This comprehensive solution ensures banks and financial institutions are LIBOR transition ready.

Overview

When the news of LIBOR -- the most widely used reference benchmark -- being phased out by January 1, 2022 came to the fore, it served as a major blow to the banking and financial institutions across the globe. This development has not only necessitated a transition to alternate rates but also forced these enterprises to customize and redraw existing functions and strategies. Besides the obvious challenges such as identifying documents maturing beyond December 2021, remediation of client contracts, etc., the banking and finance institutions are also facing issues with amendment and repapering of contracts, client outreach for renegotiation, reference identification, etc.

The TCS LIBOR Transition Workbench© is a one-stop-shop for contract remediation by banking and financial institutions. It guarantees end-to-end contract remediation by automating several activities such as contract analysis, clause extraction, draft contract creation, contract execution and archival, etc. Imbibing TCS philosophy of developing AI-based solutions in a true sense, the LIBOR Transition Workbench goes on to automate the process of identifying all contracts that require remediation and the process of creating initial drafts of amended contracts. It eliminates manual intervention in contract sharing activities and tracking of client feedback and eases transition process across all levels for an enterprise.

SolutionTCS LIBOR Transition Workbench© is built using TCS Cognitive Automation Platform (CAP)©, an integrated business and technology platform that offers modular cognitive solutions with easy plug-and-play integration and rapid release capabilities.

• Intuitive Platform: Orchestrates end-to-end contract remediation and automates activities such as contract analysis, clause extraction, draft contract creation, contract execution, and archival.

• Online Editor: Helps review/edit re-papered contracts/amendments prepared by the platform and finalize them.

• Configurable Platform: Allows configuration of LIBOR keyword repository, LIBOR clause repository, and process builder to create business-specific workflows.

• Adaptive Knowledge Bank: Facilitates intelligent search technologies, including intelligent contract search with LIBOR keywords.

• Intelligent Digital Extraction Suite: Facilitates identification and extraction of LIBOR clauses from contracts.

• Smart Email Case Management: Automates client outreach by emailing contracts to counterparties and tracking their responses and updating cases.

• Integrated Business Workflow: Facilitates contract remediation and tracks/manages the entire process effectively.

• DMS Connector: Facilitates connecting with client contract repository.

• Dashboards: Facilitates compliance by configuring and monitoring service levels.

This solution comes with a range of features such as:

Powered by TCS Cognitive Automation Platform (CAP) ©

The TCS AdvantageBy partnering with TCS, the banking and financial services

organization can leverage:

§ Cognitive Platform: TCS offers a comprehensive LIBOR

transition solution for end-to-end contract remediation

activities by leveraging its intelligent search, cognitive OCR,

workflow, and client outreach functionalities.

§ AI-Driven Platform: Our TCS LIBOR Transition Workbench

has been designed to support all organizations that need an

AI-driven platform to remediate LIBOR contracts. The solution

focuses on augmenting human capabilities with smart

solutions to ensure financial organizations across the globe

are ready for the transition.

§ Modular, Scalable Solution: The solution is highly modular,

scalable to any level, and capable of being implemented

separately as well as in combination to support various

remediation requirements and meet the changing needs of

the clients.

§ Contextual Knowledge Across Domains: Our certified

subject matter experts offer a strong combination of rich AI

and automation experience. They are well-trained to deliver

strategic solutions to fulfill the varied requirements of

different banking and financial sector clients during their

transformation journey.

BenefitsWith TCS LIBOR Transition Workbench©, the banking and financial institutions across the globe can reap the following benefits during their transition journey:

End-to-End Automation

§ Automates the identification of contracts that require remediation.

§ Automates LIBOR clause identification and extraction.

§ Automates the creation of initial drafts of the amended and re-papered contracts.

§ Automates various activities such as contract sharing, tracking counterparty feedback, contract execution and archival.

Smart Contract Remediation

§ Augments human capabilities with cognitive solutions to remediate contracts.

§ Executes automated processes to identify all contracts that require remediation across the organization, including all business functions.

Graphical, User-Friendly Dashboard

§ Allows reviewing of platform generated amendments/re-papered contracts to make necessary changes.

§ Tracks the transition progress at all levels – enterprise, business function, and contract.

Improved Customer Experience

Improved Process Efficiency

Improved Governance & Compliance

Reduced Cost of Operations

Intelligent Contract Search

AI / ML based LIBOR Clause Extraction

Automated case creation

Online Contract editor for reviewing and editing re-papered contracts

Client Outreach - Emailing of contract to the counter-party, track their responses by leveraging ML / NLP techniques

Contract Execution & Archivalby leveraging DocuSign

connector & API integration

Contract Re-papering / Amendment Creation Using client specific clause

library / contract repository

End to end Platform

Plug & Play

BPaaS / SaaS / On-prem

Modular Approach with API Integration

Time to Market

Pay per use model

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About Tata Consultancy Services Ltd (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery ModelTM, recognized as the benchmark of excellence in software development. A part of the Tata Group, India’s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India.

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