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Clifford Chance

Case study

Loan portfolio migration for large international bank

Using technology and low-cost resource to improve quality and achieve 40% cost reduction in a due diligence project

Clifford Chance were acting for a banking client in an exercise involving the internal transfer of loans. One element of this project involved completing due diligence questionnaires (DDQs) for multiple loan documents, with the aim of highlighting any restrictions on the ability to carry out this transfer.

CASE STUDY | CONNECT, DELIVERY CENTRE

1

The challenge

The traditional approach to due diligence involves allocating documents to lawyers, who review them and complete a DDQ using a template in Microsoft Word. However, the documentation provided by clients is often incomplete (missing schedules or Amendment Agreements, for example).

This results in the review being delayed while these additional documents are sourced. In addition, completing the DDQ in Word means that the completed reviews need to be returned to a central person for collation and reporting. Also, when the DDQs are completed by multiple people it can result in inconsistencies.

 

2

The solution

Once a draft DDQ had been agreed with the client, our delivery centre developed this into an iSheet (essentially an online questionnaire). The iSheet was accessed through CC Connect – a secure platform that combines file sharing with collaboration tools. Using CC Connect allowed multiple Clifford Chance offices to work together through a shared platform. Completing the DDQ in iSheets drove efficiencies and ensured that all documents were reviewed in a consistent manner.

Simultaneous to development of the iSheet, our delivery centre was provided with access to the Client's chosen file-sharing platform. They completed an initial sense check of the uploaded documents to identify any which were missing and highlight any in a foreign language. This ensured that missing documents were requested as quickly as possible, causing minimal delay. Nothing was allocated to a reviewer until all the relevant documents were available making that stage of the process far more efficient.

Our delivery centre proceeded to review all English language documents. They provided local Counsel with access to the CC Connect site, allowing foreign language documents to be reviewed using the same iSheet.

3

The result

Combining the use of technology and our low-cost resource in our delivery centre allowed us to provide an efficient, high quality, cost-effective solution for the client on a fixed-fee basis, representing a reduction in the region of 40% compared to traditional approaches.