Modernizing legacy loan systems: Migration to an industry-standard lending solution

A large global bank with wholesale and corporate lending operations was relying on a heavily customized legacy loan platform. However, over time, its legacy system started lacking scalability, straight-through processing, robust accrual and cash management capabilities, and outgoing payments processing, with gaps in reporting and regulatory requirements, making it increasingly costly and inefficient to operate.

Heightened regulatory scrutiny and the need for stronger controls and auditability prompted the bank to migrate its loan portfolio to an industry-standard lending platform. The bank required support to execute a seamless migration with no disruption to BAU operations while reducing operational risk, improving data quality and transparency, and establishing a globally standardized operating model supported by a sustainable control framework.

• We chalked out a phased migration strategy based on the bank's lending portfolio risk, complexity, and regional priorities
• We deployed 25 specialized loan operations and platform experts with deep experience in legacy systems and industry-standard loan platforms, further underpinned by a globally distributed delivery model with the team spread across India, the UK, and North America. The core team was led by three seasoned project managers, each having more than 12 years of experience in the lending operations space
• Continued access to our ecosystem helped to achieve seamless and agile scalability by leveraging our deep talent pool with expertise across lending operations

We delivered an end-to-end loan migration and transformation solution aligned to the bank’s risk priorities and regulatory commitments.

• Pre-migration readiness
  • Conducted comprehensive readiness assessments across the legacy platform
  • Identified and remediated CDEs¹
  • Performed end-to-end data mapping from legacy systems to target the LMS²
  • Established a clean, compliant data foundation aligned to regulatory and accounting requirements
• Migration execution
  • Executed detailed data mapping, cleansing, and validation to ensure data accuracy and completeness
  • Adopted a pod-based delivery model with clearly owned workstreams covering:
    • Document collection and data extraction
    • Loan booking on the target platform
    • Quality assurance and accrual validation
  • Migrated complex bilateral and syndicated loan structures, including multi-currency and multi-entity setups
  • Reconstructed bespoke pricing, fee, interest, and accrual logic with detailed validation against contractual terms and downstream reporting
• Post-migration stabilization
  • Provided stabilization support post go-live
  • Managed exceptions through cash and position reconciliations
  • Enabled a smooth transition to BAU servicing with minimal disruption
  • Worked closely with finance, treasury, risk, and controllers to ensure aligned reporting, controls, and governance outcomes

¹CDEs: Critical data elements
²LMS: Loan management system

• Successfully migrated more than 1000 deals, which comprised ~25% of the bank’s global loan portfolio (by facilities and outstanding balances), to an industry-standard platform with no disruption to client servicing
• Established the target platform as the primary loan servicing system, enabling standardized processing across regions and business lines
• Significantly reduced aged cash breaks and long-standing reconciliations, lowering operational and processing risk post-migration
• Improved data quality, consistency, and auditability through standardized data models and strengthened controls, thereby ensuring regulatory requirements were met effectively within the timelines
• Enabled a scalable, future-ready lending operating model, improving operational efficiency, turnaround times, and overall client experience