Technology is transforming the private credit direct lending market, study shows
- Risk assessment and underwriting is benefiting the most from technological transformation
- Nearly half of firms will boost spending on data management by 25% or more this year
The adoption of digital platforms and technology is transforming the private credit market in Europe with credit risk assessment and underwriting benefiting the most, new Nordic Trustee research with executives in the sector shows.
More than four out of five (83%) questioned say technology has transformed the sector with 21% saying it has significantly transformed direct lending, the study by Nordic Trustee, part of global capital markets services provider Ocorian found.
Nearly three out of four (72%) of private credit executives questioned across the UK & Ireland, Germany, Switzerland, Benelux, the Nordics and Eastern Europe say credit risk assessment and underwriting has benefited the most while 50% point to improvements in deal sourcing and origination.
Around half (46%) say technology has transformed loan monitoring and servicing with 43% highlighting the benefits of technology for due diligence and compliance. Nearly a third (32%) say technology has had a transformative impact on client communications and reporting.
The study with professionals working across private credit and debt fund management private equity and corporates using private credit as a source of funding and for debt advisory firms found almost all (94%) believe standards and infrastructure in the market in respect of data management and reporting are good or excellent.
Almost all (99%) are, however, committed to increasing spending to improve data management processes using automation and machine learning this year compared with last. Nearly half (47%) will increase budgets by 25% or more.
One in three (31%) say they are very likely to adopt new technological tools such as AI, blockchain and machine learning to further improve efficiency and transparency in direct lending over the next two to three years. The other 69% questioned say they are likely to do so over the same period.
Aleksander Nervik, EVP Digital Products at Nordic Trustee, said: “Technology is no longer just an enabler – it’s a source of competitive advantage in direct lending. We’re seeing the greatest impact in credit risk assessment and underwriting, but the real transformation is only beginning. As the industry embraces AI and automation, we expect smarter, faster decision-making across the entire credit lifecycle.
“Direct lending is still maturing compared to the bond market, and many players are managing portfolios with outdated tools like Excel. Transitioning to structured, digital platforms is critical – not just to remain relevant, but to scale effectively and serve clients with confidence.
“We’re investing heavily in automation and AI to transform how we operate and to elevate the client experience. As a loan agency, it’s our responsibility to lead with technology that simplifies processes, increases speed, and boosts transparency. Digitisation isn’t just about efficiency – it’s about resilience. It frees our teams from repetitive tasks, reduces operational risk, and enables them to focus on delivering value throughout the credit lifecycle.
“At Nordic Trustee, our AI strategy is anchored in two priorities: building GenAI fluency across the organisation and embedding AI deeper into our workflows and platforms.
““GenAI fluency is now a core skill. Every team – from operations and finance to HR and client services – is expected to actively adopt GenAI in their day-to-day work. This is not a trend or an add-on; it’s essential for staying agile and competitive.
“We’re fortunate to build on a modern, cloud-based platform without legacy constraints, which allows us to adopt GenAI at speed and scale. We’ve already automated processes like covenant extraction from loan agreements – work that once took hours of manual review – and we’re expanding our use of GenAI and internally trained models to drive improvements in reporting, monitoring, and data-driven client insights.
“Looking ahead, the private credit firms that will lead are those that embed technology into their DNA – with digital-first infrastructure, high-quality data, and a clear focus on AI and automation as critical capabilities. At Nordic Trustee, that’s exactly our direction.”
With over 30 years’ expertise in the bond and loan markets and a track record of facilitating 14,000 transactions over the years, Nordic Trustee brings an unparalleled depth of knowledge to support bond and loan transactions in the UK and Europe.
It differentiates itself through its proprietary technology, extensive restructuring expertise which includes more than 450 restructurings and 2,000 noteholder meetings, and a problem-solving approach that streamlines complex transactions for issuers and investors alike. Nordic Trustee is committed to delivering best-in-class trustee and loan agency services tailored to the needs of issuers, investors, and intermediaries.
Notes to editors
Please note that this press release is intended to provide a very general overview of the matters to which it relates and is provided for your convenience. It is not intended as legal or investment advice and should not be relied on as such.
*In March 2025 Ocorian commissioned independent research company PureProfile to interview 210 private credit professionals working across private credit and debt fund management investing in private debt, private equity using private credit, borrowers using private credit as a source of funding, and debt advisory. Respondents were based in the UK and Ireland, Germany, Switzerland, Benelux, the Nordics and Eastern Europe.
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