danio

Institutional Credit Agreement Standardization

Comment

Inspiration

Institutional credit is governed by complex financial legal agreements, yet managed via manual data entry. This gap between legal intent and operational data creates settlement delays, manual errors, and a total lack of portfolio-wide transparency.

What it does

danio is a tool to help reduce operational bottlenecks in syndicated lending. It bridges the gap between unstructured legal prose and structured credit data, facilitating transparency and straight-through processing across the loan lifecycle. It is a smart system that harmonizes credit agreements into a standardized System. By aligning bespoke financial covenants and economic terms, danio transforms a static financial legal document into a dynamic digital asset. The target users would be credit, risk financial professionals.

How it works

  1. Credit Term Harmonization Resolves discrepancies between bespoke legal phrasing and internal accounting systems. The platform aligns diverse commercial terms—such as interest rate step-downs and margin grids—into a unified framework for portfolio-wide consistency.

  2. Standardized Loan Object (SLO) A proprietary framework that provides a definitive digital record of every credit instrument. The SLO enables seamless integration with risk engines and straight-through processing, ensuring that the legal "code" of the agreement is interoperable with financial systems.

  3. Operational Transparency Mitigates settlement delays by providing immediate access to critical data. Instantly verify financial covenants, leverage ratios, and maturity profiles to ensure accurate capital allocation and compliance monitoring.

How we built it

It was built using the flask framework (Python) for the backend then a mix of html, css and javascript for the front even. It was then deployed on Vercel. Ensuring a lightweight and responsive experience

Challenges we ran into

The main challenge encountered was framing the problem. I was not too familiar with the credit lending space. It involved reviewing the LMA website and doing some research to understand what was available on the market. Also had to look for some of the key pain points in credit lending as well.

What's next for danio

  • Improve OCR (Optical Character Recognition) capabilities
  • Add authentication and ability to have multiple users
  • Expand the SLO capabilities

Built With

Share this project:

Updates