2024 had been an exciting year at TAO Solutions for several reasons: firstly, we continued to build on the foundation of our technology platform, adding new functionality to address the growing needs of our customers and the structured finance / covered bond industry; secondly, we significantly expanded our geographical coverage, adding new issuers and enabling a path of least resistance for jurisdictional-specific issuance activities; and finally, our focus on employee satisfaction and development resulted in multi-year awards of being a Great Place to Work certified company.

As we look towards the future, we remain committed to our core competency of servicing the global financial services industry. As structured finance issuance volumes continue to rise across the world, the broader industry requirements surrounding risk management, governance, traceability, regulatory considerations and increased efficiencies remain a central theme.

At TAO Solutions, we have become a world-leading authority on best practices surrounding everything related to structured finance, securitization and covered bond administration. This is important as boards, executives, senior management and information technology departments need to understand and address how correct solutioning and technology mitigates the underlying business risks associated with complex structured finance activities.

Below, we highlight several important initiatives undertaken by TAO Solutions to address the future needs of the financial services industry. 

·       Artificial Intelligence (AI)

Having reviewed and undertaken several AI projects internally, the promise of AI to transform operational requirements is evident. AI introduces several efficiencies that supports front, middle and back office operational activities. With that in mind, we are currently working on several embedded AI tools to assist with platform administration activities which will be further explored in forthcoming newsletters.

·       Dynamic Data Interfaces

The requirement for structured finance and covered bond programs to address the evolving needs of  originators, funders, sustainable finance, and regulatory bodies means that users of SecureHub will be required to easily map and ingest new data elements for pooling and downstream reporting purposes on an ongoing basis. As a result, new tools will be available allowing users to dynamically define core data table elements and structures that can cater for different source data and jurisdictional requirements without the cost and time associated with development as and when required.

·       Advanced Portfolio Optimization

The non-bank, neo-bank, and private credit industry continues to grow with increased demands to address periodic rebalancing of asset portfolio composition post funding/issuance. In addition, with traditional and synthetic portfolio covenants becoming increasingly more stringent, SecureHub will introduce new automated portfolio optimisation techniques which will solve complex asset selection tasks in minutes across various asset classes and funding mechanisms.

·       Financial Modelling and Reporting Simplified

The process of onboarding of new transactions needs to be as efficient as possible, with the ability to trace calculated values back to source and link underlying waterfall calculations to the core transaction documents. With SecureHub’s forthcoming reporting wizard and natural language processing capabilities, the ability to move quickly and accurately from documentation to vetted models will be unparalleled and significantly improve operational agility well beyond current methods.



With so much exciting product improvement activities currently happening at TAO Solutions, we envision 2025 as a foundational period whereby emerging technological advancements will drive the need for  structured finance industry participants to re-evaluate the status quo. To find out more about our journey and how this can support your business requirements, please reach out to our co-authors below. 

Mr Jim Metaxas

Managing Director

Email: jim.metaxas@taosolutions.ca

Mr Nicolas Warlop

Director

Email: nicolas.warlop@taosolutions.ca