Credix’s new monitoring feature unlocks the power of credit data
Credix has launched a new product feature that collects and standardizes all relevant information on the assets collateralizing the on-chain deals, providing investors with access to data on asset eligibility, portfolio covenants, collections, distributions, delinquencies, and defaults. The feature allows for efficient and accurate monitoring of investments, leading to more informed decision-making.
Reliable and comprehensive data is critical to making informed investment decisions. At Credix, we understand this and have developed a system that provides the data our investors need to perform deep due diligence and monitor their investments.
Credit transactions consist of two main parts: the liability side and the asset side. On the liability side, we have smart contract logic that automatically sends interest and principal repayments to different investors based on the waterfall structure of the deal. More information here.
On the asset side, we require our FinTech partners to post cash-generating assets as collateral for the facility. Every asset has its own characteristics, and repayment schedule. We carefully select eligible assets that meet our criteria. We also have portfolio covenants in place that act as rules on the aggregate portfolio of assets. All of this generates thousands of data points that are critical to monitoring the health of the collateral pool and predicting the future performance of the deal.
To ensure investors have access to this important data, we’ve developed a system that collects and standardizes all relevant information. We worked with our FinTech partners, monitoring agents, and investors to identify all available data points and define a data standard for facility monitoring. Our tooling makes it easy for stakeholders to upload required data in our standard, and automated checks ensure the correctness of the data. Those checks range from validating the formatting of the input values to recalculating the business logic of specific ratios and cross-checking with the portfolio’s collection account.
Once the data passes our quality filter, investors can access it on the platform. This data includes information on asset eligibility, portfolio covenants, collections, distributions, delinquencies, and defaults. At Credix, we’re committed to providing our investors with the data they need to monitor their investments and make informed decisions. By standardizing and automating our data collection and reporting, we aim to make this process as efficient and accurate as possible.
We focus on continuously improving our platform and providing even more value to our investors. Our next steps involve deep data integrations with our FinTech partners, allowing for real-time updates to be fed directly into our platform. This will enable investors to access up-to-date information on their investments, leading to more efficient and informed decision-making. In addition, we plan to gain access to loan-level data to provide investors with greater transparency and insight into the underlying assets. Finally, we are exploring the use of statistics and AI to improve our internal due diligence process and asset selection, ultimately helping us identify potential risks and opportunities early on in the investment process.
