Use Case Proposal for Ongoing Reporting – Automating Transparency and Compliance for Securitization Issuers
Ongoing reporting is a core regulatory and investor requirement in the securitization lifecycle, requiring timely, accurate, and detailed disclosures throughout the life of a transaction. Issuers face mounting complexity in collating loan-level data, financials, risk metrics, and compliance documents—often relying on manual compilation that risks delays, errors, and non-compliance.
Step 1: Overcoming Manual Reporting Workflows and Accuracy Risks
- Issuers traditionally assemble extensive performance, compliance, and investor reports through manual data aggregation from multiple servicers, trustees, and asset managers. This process is labor-intensive and susceptible to inconsistencies and missed deadlines, threatening regulatory standing and investor trust.
Step 2: Building a Centralized AI Reporting Platform
- Scalata brings automation by ingesting all relevant portfolio data, legal documentation, servicer and trustee updates, and historical reports into a unified, AI-powered platform. The system validates and organizes data in real time, ensuring complete financial disclosure and compliance with regulatory frameworks such as SEC and Regulation A.
Step 3: Activating Dynamic Reporting and Stakeholder Engagement
- Through conversational AI, teams can instantly query key metrics, pull historical performance, and assemble tailored reports for regulators and investors. Scalata automates the periodic creation of annual, semiannual, and event-driven (current) reports, with source traceability and fully auditable documentation.
Step 4: Automated Regulatory Filing and Investor Communication
- Scalata’s AI agents generate, certify, and electronically file regulatory forms (e.g., Form C, Form 1-K, Form 1-SA, Form 1-U, and Form 1-Z) with required financial statements and disclosures. The platform also automates distribution of updates and compliance notifications to investors, ensuring ongoing transparency and timely communication.
The Strategic Outcome with Scalata:
By adopting AI-driven automation for ongoing reporting, issuers transform a slow, risk-laden process into a seamless, compliant, and transparent workflow. This improves reporting accuracy, reduces workload, enhances investor confidence, and mitigates regulatory risk—delivering market-leading operational excellence.
