Asset Finance - Rethink the asset register: Part 4

This is the final article in this series. In part one, part two and part three, we have shown how Open Assets can create a digital asset identity for any asset, verify the identity details and represent a financed asset.

Now that we understand what an asset register needs to do, in this article, we will finally answer the question, “can an asset interest register be created for the asset finance industry?”.

The reveal

The Open Assets Register is a dedicated product we have developed to solve the asset register problem. We have been building it for the past 18 months with the guidance of knowledgeable members of the asset finance community. Open Assets Register is ready to use and implements everything we have discussed and more.

The challenge

Throughout this series, we have seen that there are many parts to creating an asset register that works for all assets. We have to be able to

1. Uniquely identify an asset

2. Avoid duplicate entries

3. Avoid data entry errors

4. Verify the identity of the assets

5. Account for attachments and components

Plus, easily search the register with all these factors in mind.

Of course, these are just the operational issues of the asset register. We also need to address two other problems as well:

1. Existing single asset type registers

2. Funder integration

Existing single asset type registers

Registers that are dedicated to a single asset type focus on building a specialist dataset around that specific asset type, not just financial interest. Examples of this can range from the MARS (Motor Asset Registration Services) to the British Cattle Movement Service.

Due to system misuse because of large volumes of ‘vehicles’ financed in a typical funder's portfolio, the MARS asset register currently faces data quality issues from that misuse. However, if we can shift the focus back to solely motor vehicles, it would ensure its registers' integrity moving forward.

To maintain the flow of vehicle data to MARS members, Open Assets Register has mechanisms to expose partitioned areas of the asset register to industry-trusted 3rd parties. For example, this mechanism would allow each MARS member to receive all vehicle asset registrations from the system in real-time. Plus, it will enable them to query the asset register for all registrations by date if they prefer to query the dataset periodically.

By having one asset register for all assets, funders only have to register assets in one place, and all trusted 3rd parties can receive the data they care about. In the example above, MARS members would receive all vehicle registrations. In another example, the British Cattle Movement Service could receive all cattle registrations if the industry approves or if it is forced to.

Funder integration

There is an understandable hesitation from funders to use, integrate and maintain yet another solution, albeit one that can significantly reduce their fraud risk. Open Assets are fully aware of the cost and time it takes to integrate with 3rd parties. Thus, we have invested the time to make the Open Assets Register as easy as possible to use and the last integration you need for asset registrations. Integrating with Open Assets allows data to be passed to any additional registers as required. So even if you venture into a new asset type, your integration with Open Assets will handle data distribution to the required register for you.

Additionally, we are committed to working with contract system providers to make integration as simple as possible. We can easily integrate with multiple funders by working with technology providers without individual costs.

Take a typical use case; you enter asset details into your application or contract system. Once you finalise the contract, the system registers your interest in each asset on the Open Assets Register for you. Job done! No additional training, integration or maintenance is associated with using this new asset register because your contract system handles it for you.

We understand that there are cases where funders do not enter all the individual assets against a contract; we can handle that scenario too. Hold the asset group against the contract, and the Open Assets Register creates the individual assets for you.

Conclusion

Can an asset interest register be created for the asset finance industry? YES

This series has shown how to build an asset register that works. This article has highlighted how you can implement it with minimal cost while benefiting from all the features the Open Asset Register offers.

For too long, the asset finance industry has had to use a system that is not fit for purpose. For too long, there has been a lack of innovation in this space. Open Assets Register brings the search to an end. Finally, we have an asset register that benefits the asset finance industry no matter the asset.

If you want to learn more about Open Assets Register don’t hesitate to contact us at hello@open-assets.co.uk. It would be great to hear from you.

All parts of this series:

1. Asset Identity - a common way to represent any asset digitally

2. Asset Identity Verification - confirming the identity matches the real-world asset

3. The Financed Asset - the combination of asset identities and additional data that create a complete picture of an asset

4. You are here → Open Assets Register - a database of assets and the parties with a financial interest in them