Private debt is one of the world’s fastest-growing alternative asset classes. Over the past decade, the market has grown 13.5% on average annually and now stands at close to $1.5 trillion globally. This growth has necessitated rapid technological advancements to keep up with industry demands. When considering your private debt technology, it is important to assess the current technology and identify its limitations and issues before upgrading. This allows you to better understand what features and capabilities you need in the new technology to address those pain points.\
Ask yourself: what are your goals for upgrading technology? Do you want to streamline workflows, reduce errors, increase efficiency, or improve data accuracy? By defining what you want to achieve with the new technology you are better able to identify which private debt solutions will best fit your needs.
Onboarding New Technology Can Be Difficult, but Necessary
The amount of time it will take to implement new private debt software and the process involved can vary a great deal. It’s vital to identify any potential disruptions to business operations and create a plan to mitigate any risks and ensure a smooth transition. Building software from scratch can be expensive and time-consuming, especially if you lack in-house expertise. Purchasing pre-built software, on the other hand, can be more cost-effective in the short term. However, it is important to consider the long-term costs of maintaining and upgrading the software.
If you need your private debt platform to integrate with other systems, it is often easier to purchase pre-built software that already has the necessary integrations in place than building software from scratch which may require more time and effort to integrate with other systems. When purchasing software it is important to ensure that it doesn’t have limitations on customization or scalability, so that you can maximize its functionality and effectiveness. Ultimately the decision to build or buy software should be based on a careful analysis of your organization’s specific needs, but the benefits usually outweigh the costs.
Upgrading technology is an important investment in your business. It can help your organization stay competitive, streamline workflows, improve data accuracy, enhance reporting and analytics, and improve client service.
Five Important Questions To Consider When Choosing a New Private Debt Platform
What do your data inputs look like?
Examine your sources of data and the format that your data is coming in. Is the data clean and standardized?
You need a platform that can normalize your data.
What do you want your data outputs to look like?
Review the ways that you typically interact with your data. Do you prefer to generate reports or view your data as a dashboard? Do you need to be able to share reports? Do you want a dashboard?
You need a tech solution that meets your needs.
Do you have any integrations or system connections to consider?
Evaluate the existing applications in your tech stack and identify which of these would need to work in tandem with your new technology. Would implementing new private debt solutions replace or make other tech redundant and what would be the wider implications of that decision?
You need a solution that can easily fit into your existing workflow.
What level of collaboration or accessibility do you need?
Consider the number and types of stakeholders (internal and external) that need easy access to your data. How much control should they have when interacting with your data?
You need a technology that supports your collaboration needs.
What kind of documentation do you have for your workflows?
When a workflow changes, it is important to communicate that change to all of the relevant stakeholders. If you design and share a new workflow, it’s important that a training plan can help to make sure the new workflow or technology is properly adopted.
You need software that promotes confidence and clarity across all parties.
T-REX for Private Credit pairs managed data services and advanced cashflow analytics with the ability to easily produce automated reporting. T-REX has worked with clients to automate formerly manual data-driven processes and drive true efficiencies and cost savings. By using T-REX to implement a new automated QA process, one client was able to:
- Save close to $15 million in costs related to data errors and discrepancies.
- Increase the number of facilities their division managed by 300%.
When it comes to choosing a new private debt platform, T-REX is ready to help you bring confidence, clarity, and precision to your private credit strategy.