Finley, a leading provider of debt capital software solutions, has officially announced the launch of its enhanced Monthly Servicer Reporting (MSR) capabilities, each one designed to eliminate the logistical and technological hurdles common among corporate borrowers, particularly those with warehouse facilities.
According to certain reports, the stated new capability arrives bearing the means to directly address the most difficult parts of MSR generation and management i.e. collaboration, data management, and knowledge management.
To understand the significance of such a development, we must take into account a fact that, going by BNY’s word, market for private credit has grown tenfold over the past 15 years, and is projected to reach $3.5 trillion by 2028.
Further relaying its importance would be how, in asset-based private credit transactions, MSRs are a crucial yet error-prone part of the lender-borrower relationship. This is because MSR assembly and verification requires meticulous data aggregation from disparate sources, complex calculations derived from credit agreements, and an extensive review.
In response, Finley’s has integrated its MSR capability into the company’s Deliverables module, and it has done so to provide a centralized hub for all MSR needs.
Taking a deeper view of what this module is going to offer, we begin from its promise to provide clear deadline visibility. Borrowers can basically come expecting to gain instant access of “Due Soon” reports and historical submissions, something which should tread up a long distance to achieve a single source of truth for preparing current MSRs and reviewing past outputs.
Next up, there is the prospect of more structured requirements. As typical MSRs require 14-16 distinct input files, each with specific formatting requirements, Finley improves upon that rather dramatically by outlining these needs irrespective of whether the files are programmatically generated or manually entered.
Another detail worth a mention is rooted in the given module’s collaboration and analysis hub. After submission, Finley customers can see all MSR data points, team discussions, historical files, and relevant analytics in the same Deliverables module. Such a mechanism should move MSR management from the email inbox into a purpose-built system.
Turning our attention towards how Finley tackles the complexities of data aggregation, it pursues that objective through, for instance, guided file generation.
Here, within the platform, Finley provides a clear breakdown of required files and their exact formatting specifications. Every single requirement would also be packaged with a “data dictionary” to provide crucial context. This is especially relevant when finance teams are collaborating with data or engineering teams for historical or point-in-time reports.
Finley’s latest brainchild also leverages enhanced collaboration and versioning to clock its data management objective. This involves empowering teams to track changes, view previously submitted files, and work with internal and external collaborators.
These new MSR capabilities also bring forth time-savings and knowledge management benefits for both lenders and borrowers. Starting from time and risk reduction efforts, the stated mechanism will basically automate data collection and report generation to save dozens of hours of manual labor per month, all while reducing delays in coordinating across teams.
Beyond that, the features in question also bank upon actionable insights, with every data point from Finley’s MSR capability securely stored in the software’s data lake, thus facilitating in-app aggregation, querying, and visualization. The idea here is to scale up existing workflows based on email inboxes and ad hoc data analysis.
Rounding up highlights would be the potential for enhanced trust and strategic focus, which stems from Finley’s commitment to provide transparent, auditable, and accurate reporting. Centered on achieving stronger trust between lenders and borrowers, this focus makes it possible for finance teams to move beyond operational concerns and dedicate their time to other priorities like capital allocation, risk management, and portfolio optimization.
“For over four years, we’ve worked closely with Finance teams to identify the most challenging aspects of MSR generation and tracking,” said Jeremy Tsui, CEO of Finley. “Our new MSR capabilities take everything we’ve learned and put it into a product form. Now Capital Markets and Finance teams can have the modern collaboration, file management, and data analysis capabilities that teams like Sales and Engineering have come to take for granted.”