LIXI 2.0 AN INDUSTRY OPPORTUNITY
LIXI 2.0
AN INDUSTRY OPPORTUNITY
LIXI 2.0 – an industry opportunity
What is LIXI 2.0?What is LIXI 2.0?What is LIXI 2.0?What is LIXI 2.0?
Our objectivesOur objectivesOur objectivesOur objectives
The componentsThe componentsThe componentsThe components
ImplementationImplementationImplementationImplementation
Next StepsNext StepsNext StepsNext Steps
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What is LIXI 2.0 ?
Driven by a fundamental requirement to reducethe cost, complexity, and time for change
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What is LIXI 2.0 ?
� A world’s-first approach to ‘electronic guidebooks’
� A fresh look at data messaging standards for the lending industry
� A renewed “language of lending”
� An industry opportunity
� Based on core requirements from LIXI members
� Available now
A A A A connected, communicating communityconnected, communicating communityconnected, communicating communityconnected, communicating community
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Overall objectives for LIXI 2.0
� Reduce the costs Reduce the costs Reduce the costs Reduce the costs of working with business partners along the lending chain
� Increase ability Increase ability Increase ability Increase ability to bring new products to market and create quick changes while maintaining differentiation
� Enhance the industry’s ability to respond to regulatory changesrespond to regulatory changesrespond to regulatory changesrespond to regulatory changesquickly and efficiently
� Protect the lending industry Protect the lending industry Protect the lending industry Protect the lending industry by providing an open, standards-based environment for commercial providers and suppliers
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The components of LIXI 2.0
True StandardsTrue StandardsTrue StandardsTrue Standards
� Define every piece of data shared across the lending industry –over 2000 terms in the Data Dictionary
� A universal super-set data message standard – the CAL 2 schema
� Conformance testing to ensure that CAL 2 data files conform to the specifications
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The components of LIXI 2.0
Electronic GuidebooksElectronic GuidebooksElectronic GuidebooksElectronic Guidebooks
� Contains all the business rules, data logic and print form templates that are currently manually implemented
� Has the CAL 2 and Data Dictionary standards at the core
� Automatically reconfigures lodgement user interface
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The components of LIXI 2.0
Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks ---- BenefitsBenefitsBenefitsBenefits
� Lender control over their own guidebooks
� True standards enable efficient guidebook management
� Verifiable design reduces the time, effort and cost of maintenance
� Direct reconfiguration of the lodgement user interface means no coding or testing delay, no errors
� Guidebooks can be universally distributed – any to any
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Broker Systems
Lender
Systems
Electronic Guidebooks
Data Dictionary
Broker SystemsLender Systems
Lending policy and
document templates
The lender owns the IP within
their electronic guidebooks
Electronic Guidebooks conform to a
LIXI Standard – any lender guidebook
works for any recipient
A Business Analyst can prepare a
guidebook – no coding required
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Broker Systems
Lender
Systems
Data Dictionary
CAL 2Broker Systems
Lender Systems
Lending policy and
document templates
The guidebook can be tested (auto or
manual) prior to distribution
Electronic Guidebook
The guidebook is published and
made available to the distribution
channel, in the lender’s timeframe
Electronic Guidebooks
The guidebook controls the user
interface and prepares CAL 2
applications for the lender
CAL 2 applications
The components of LIXI 2.0
Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks –––– No Magic!No Magic!No Magic!No Magic!
� Analogous to web browsing experience – defines the screen layout and the forms
� Uses Tabs, Pages and Fields
� Visibility rules
� Content rules
� All field specifications and rules reference the data dictionary terms
� Print forms are just transformations
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The components of LIXI 2.0
Change Management for the StandardsChange Management for the StandardsChange Management for the StandardsChange Management for the Standards
� Must be responsive to industry needs
� LIXI website for form submission, tracking and workflow
� A new Glossary of industry terminology
� Simple additions will have fast turn-around
� Complex changes require collaborative analysis
� Monthly release schedule
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The components of LIXI 2.0
Change Management for the Standards Change Management for the Standards Change Management for the Standards Change Management for the Standards ---- BenefitsBenefitsBenefitsBenefits
� Responsive to industry needs
� Reduces licensee resource requirements and deliver certainty for project timelines.
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The components of LIXI 2.0
Conformance Testing and CertificationConformance Testing and CertificationConformance Testing and CertificationConformance Testing and Certification
� CAL 2 Data must be a subset of the LIXI Data Dictionary
� Guidebook tools to ensure compatibility
� Testing facility to assure all licensees – senders and receivers -that files are compatible
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CERTIFIED
Implementation
For Lenders …For Lenders …For Lenders …For Lenders …
� Software tools for configuration of electronic guidebooks
� Gateway support for CAL 1.x and CAL 2 applications
� Transformation for backward compatibility
� ‘Process’ changes
� Minimal impact on existing systems
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For Brokers …For Brokers …For Brokers …For Brokers …
� Lodgement software to ‘consume’ the guidebooks
� CRM/Q to ‘fork’ the process for CAL 2 vs CAL 1.x lender
� ‘Process’ changes
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Broker Systems
Lender
Systems
CAL 2 applications
Broker System Lender B
Electronic Guidebook
Implementation – Broker Perspective
Guidebook
Maintenance
Lender A
Broker CRM/Q ‘forks’ the
application process
depending on lender capability
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Broker Systems
Lender
Systems
CAL 2 applications
CAL 2
BrokerLender
Electronic Guidebook
Implementation – Lender Perspective
Guidebook
Distribution
CAL 1.x
Broker
CAL 1.x
Gateway
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Lender
Systems
Lender
Implementation – Lender Perspective
Gateway transformation
CAL 2 CAL 1.x
CAL 1.x
Industry Opportunities
� Guidebooks for wholesale and white label distribution
� Cross-sell, by aggregator or by lender
� Direct to consumer
� LMI – true standards
� Attaching valuations and credit reports
� Backchannel / status messaging
� Outsourced services like doc prep – plug and play
� Guidebook maintenance services
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Lender
BrokersLIXI 2.0 message
validation and
delivery
The Future of LIXI Messaging
FHOG LMI
ScorecardingDoc PrepCredit
Reports
Cross-sell
target
Indicative
Full
Next Steps
For Lenders …For Lenders …For Lenders …For Lenders …
� Build a guidebook using the EGB Schema
� Build a transformation, starting from a LIXI template
� Plan for ‘process’ changes
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For Brokers …For Brokers …For Brokers …For Brokers …
� Understand how to ‘fork’ your lodgement process
� Engage with loan writers
Next Steps
For For For For Software vendorsSoftware vendorsSoftware vendorsSoftware vendors
� Enhance broker-side application lodgement software to consume electronic guidebooks
� Enhance CRM/Q software to consume electronic guidebooks and generate CAL 2 applications directly
� Enhance lender gateways to accept CAL 2 data files natively
� Enhance loan assessment platforms to export lending policy in guidebook format
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LIXI 2.0
AN INDUSTRY OPPORTUNITY