AMSTERDAM--(BUSINESS WIRE)--As society increasingly values sustainability, bicycle mobility is becoming a popular choice for commuting. Another driver of this development is company bike leasing, invented by the Freiburg-based company JobRad. Similar to company car leasing, company bike leasing offers tax advantages that allow employees to save up to 40 percent in cash compared to buying a new bike. With its concept, the industry leader JobRad has so far brought more than 1.5 million people onto bikes. JobRad's central leasing company is the in-house JobRad Leasing GmbH. For refinancing strategies, the company has also been relying on asset-based refinancing for some time.
Securitization is key to this type of liquidity management, as it involves pooling financial assets such as loans, leases, or trade receivables and transforming them into a new financial investment product, known as asset-backed commercial paper (ABCP). However, creating a portfolio of eligible assets for ABCP involves managing extensive data from various sources, meeting reporting requirements, and adhering to eligibility criteria. As a result, for its first securitization transaction, the company sought to automate and efficiently develop the asset portfolio while maintaining the feasibility and high level of digitization that characterizes the entire JobRad Group.
Developing bespoke solutions for effective management of securitization transactions
Leveraging its Securitization as a Service solution, BearingPoint assisted JobRad Leasing GmbH in its first securitization transaction. The joint team conducted an interface workshop to identify the data requirements needed to meet market transparency standards. This laid the foundation for comprehensive documentation to pinpoint and evaluate the financial assets to be securitized. In the next step, relevant business logic was defined. Thereafter, BearingPoint configured the technical platform to incorporate JobRad Leasing’s data, business events, and the required types of reporting formats. During the development and testing phase, BearingPoint focused on aligning the reporting capabilities, while ensuring the accuracy and completeness of the data.
Detailed templates were then created for both the functionality and design of all corporate reports related to funding operations, ensuring that compliance standards were met, including reporting, documentation, and disclosure requirements. The project team integrated the securitization platform with the client's existing systems and workflows to enable a smooth transition and maximize operational efficiency. On an ongoing basis, BearingPoint will provide monthly reports throughout the transaction, using data from JobRad Leasing GmbH via the new interface to enable optimal and timely execution of the securitization transaction.
“Data is essential for JobRad to finance its sustainable solutions for eco-mobility in an efficient manner, particularly when it comes to securitization. We are very pleased that BearingPoint’s Securitization as a Service solution enables JobRad to meet the challenging capital market requirements for data quality and data transparency as it contributes to a stable funding, improved liquidity and efficient risk management,” said Donald Wachs, global Leader BearingPoint Products.
Simplifying the complexity of Asset-Based Funding
By using BearingPoint’s Securitization as a Service solution, JobRad Leasing GmbH has enhanced its data management capabilities and can handle effectively the complexities of its first securitization transaction. The highly automated processes have led to substantial improvements in time and resource efficiency. Additionally, the company now benefits from fast access to necessary reports and has shortened the report delivery times.
Moreover, the scalable operations and secure data enable JobRad Leasing GmbH to enhance its liquidity and effectively manage risk. With full visibility into its leasing transaction at all times, the company is able to address compliance and extensive investor transparency requirements, while also meeting the reporting standards set by the European Securities and Markets Authority (ESMA).
“Working with BearingPoint on our first securitization transaction has been a very positive experience for JobRad Leasing GmbH. With BearingPoint's solution, we were able to significantly simplify and streamline our processes and data management to meet our capital markets reporting requirements. As a result, we have been able to further broaden our refinancing base - bringing us one step closer to our goal of putting people on JobRad,” said Benjamin Kräutter, Team Leader Treasury at JobRad.
About JobRad
JobRad Leasing GmbH has been part of the JobRad Group since its market entry in 2019 and, as a bank-independent leasing company, works exclusively with JobRad employers. As one of two possible lessors, JobRad Leasing GmbH is a direct contractual partner of JobRad employers.
About BearingPoint
BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business units: Consulting, Products, and Capital. Consulting covers the advisory business with a clear focus on selected business areas. Products provides IP-driven digital assets and managed services for business-critical processes. Capital delivers M&A and transaction services.
BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 70 countries, engaging with them to achieve measurable and sustainable success.
BearingPoint is a certified B Corporation, meeting high standards of social and environmental impact.
For more information, please visit:
Homepage: www.bearingpoint.com
Securitization as a Service: www.bearingpoint.services/securitization-as-a-service
LinkedIn: www.linkedin.com/company/bearingpoint
Twitter: @BearingPoint
