Craig Boardman: How Is Private Credit Rewriting the Rules of Loan Servicing Infrastructure?

Why It Matters

The shift to private‑credit financing demands flexible loan‑servicing platforms; Finastra’s Loan IQ provides the infrastructure that mitigates risk and ensures accurate reporting, giving lenders a strategic advantage.

Key Takeaways

• Private credit filled post‑2008 loan gap left by banks.
• Loan IQ’s flexible architecture supports bespoke private‑credit structures.
• Payment‑in‑kind features require adaptable servicing platforms for complex loans.
• Finastra’s 30‑year legacy underpins industry‑wide loan servicing standards.
• Accurate reporting reduces operational risk for investors and lenders.

Summary

Craig Boardman, a director at Finastra, explains how private‑credit firms have reshaped loan‑servicing infrastructure since the 2008 crisis. He outlines his role helping clients eliminate operational headaches, mitigate risk, and deliver precise investor reporting, while positioning Finastra’s Loan IQ as the industry benchmark for handling diverse credit products.

The video highlights that banks retreated from high‑leverage, bespoke financing after 2008, creating a vacuum that private‑credit funds stepped into. These deals often feature payment‑in‑kind terms and other non‑standard clauses, demanding software that can track varied debt instruments. Loan IQ’s long‑standing, flexible architecture—built over three decades—enables it to manage syndicated, private‑credit, asset‑based, and real‑estate loans with equal ease.

Boardman stresses that Loan IQ remains the most widely used platform for complex loan servicing, noting its ability to adapt to evolving market needs. He cites the system’s capacity to handle “highly bespoke loans” as a key differentiator, and points to Finastra’s 30‑year track record as proof of reliability and industry leadership.

For lenders and investors, adopting a versatile platform like Loan IQ reduces operational risk, improves reporting accuracy, and supports the growing private‑credit market. As bespoke financing becomes more prevalent, firms that invest in adaptable servicing technology will gain a competitive edge and better meet regulatory and stakeholder expectations.

Original Description

The corporate debt market has fundamentally shifted. Following the 2008 financial crisis, regulatory pressures forced traditional banks away from leveraged lending, paving the way for private credit funds to become the dominant force in private equity acquisitions. In this interview, Craig Boardman, Product Director at Finastra, discusses the immense operational strain this shift has placed on lenders who are still relying on legacy, rigid software systems to track highly bespoke, modern loan features.

Boardman explains how specialized mechanisms like payment-in-kind (PIK) complicate traditional workflows and increase data risks. He details how Finastra's flagship platform, Loan IQ, provides a powerful competitive advantage by serving as a flexible, unified system capable of handling syndicated loans, private credit, asset-based loans, and real estate transactions under one roof. By leveraging over 30 years of specialized functionality, Loan IQ eliminates operational headaches, reduces risk, and ensures accurate investor reporting for any deal structure.

Read the full article here: https://ffnews.com/fintech-tv/the-rise-of-private-credit-and-the-need-for-flexible-loan-servicing/