Wolters Kluwer is hosting a free webinar at noon (ET) on Wednesday titled, “Strategies to Pledge Electronic Collateral to the Federal Reserve Bank.”

Wolters Kluwer explained that pledging an auto loan is an important option for auto lenders because it provides them with liquidity options and reduces financial risk. Lenders are investing and expanding their digital lending footprints so they’re able to use their auto assets as eAssets for pledging with the Federal Reserve Bank.

Experts said that critical to any digital lending expansion is assurance the resulting electronic assets (eAssets) can be effectively leveraged in their liquidity and capital strategy.  An example is the significant number of auto loans originated as eAssets that may be held in portfolio, but with the right approach can be certified for pledging to the Federal Reserve

Wolters Kluwer said more lenders are increasingly transitioning from paper pledged loans to originating or acquiring electronic assets (eAssets) realizing their enhanced security and risk management capabilities. The use of electronic assets also enables lenders to reach a broader range of credit-worthy borrowers, expanding their market access.

Overall, the adoption of digital lending represents a significant advancement in risk management and operational efficiency for lenders, according to Wolters Kluwer, which added that this approach can streamline the lending process, lowering costs and minimizing delays by automating workflows and improving efficiency and compliance

The webinar will be led by several industry experts who will share insights on why and how to leverage the Federal Reserve Bank for liquidity using electronic collateral.

The panel of experts will dig into Federal Reserve certification, designing a compatible digital lending process, and how to avoid pitfalls that add risk and can compromise your valuable electronic assets (eAsset), with particular emphasis on the following:

—Gain insights on navigating the Federal Reserve certification process

—Critical knowledge needed for pledging your indirect electronic assets

—Successful use cases and future-proof strategies for lifecycle eAsset leverage

—Roadmap for digital lending transformation with the end state in mind

“Understanding how to properly leverage digital assets in pledging is not just an advantage — it’s a necessity,” said Stephen Bradley, who is director of strategic industry relationships at Wolters Kluwer. “As we’ve seen, electronic collateral offers unprecedented control, efficiency, and risk management capabilities.

“Lenders who master this technology can expand their market reach and streamline operations. However, the key lies in implementation. It’s not enough to simply adopt digital collateral; we must strategically integrate it into our lending processes, ensuring compliance and maximizing its potential,” Bradley went on to say.

To register for this webinar, go to this website.