Accelerating LIBOR transition through automation of data gathering and analysis

An international law firm used Eigen to help them deliver more quickly on a LIBOR transition client engagement.

The challenge

From 2021, the Financial Conduct Authority intends to no longer persuade or compel banks to submit to LIBOR. Financial institutions must now take appropriate action to adhere to new regulations.

LIBOR’s transition potentially impacts over $350 trillion of contracts and requires all LIBOR transactions to be examined and most likely repapered. LIBOR is embedded in every asset class – mortgages and retail loans, to commodities, derivatives, bonds and securities.

Legal organizations are managing multi-workstream programs to assist their financial services clients in this transition. The legal client needed to analyze around 150 loan agreements that were each several hundred pages long.

The solution

The legal client enlisted Eigen to augment their senior associates’ efforts by automating the extraction of 20+ data points and using the platform to answer complex legal questions linked to LIBOR transition in the span of two to four weeks. Eigen’s intuitive user interface meant that the associates felt comfortable using the product as quickly as two days after deployment.

Eigen achieved high accuracy with a training process that required a low number of training documents.

The results

Eigen was chosen because of its logic interface and ability to handle complex legal analysis to support the repapering process of LIBOR.

The flexibility of the platform allowed the associates to sift through a large tranche of loan documents efficiently and at scale.