Leather finishing is a critical process in the leather industry, as it significantly influences the final appearance, durability, and quality of leather products. Traditional leather finishing techniques often involve the use of synthetic chemicals, which may lead to environmental concerns and potential health hazards. In this study, we investigate the feasibility and effectiveness of a new collagen-based product for leather finishing. Collagen, a natural protein found abundantly in animals, has shown promise as an environmentally friendly and sustainable alternative for leather finishing. The new collagen gel product obtained from bovine hide waste by using an alkaline extraction method with lime was functionalized through an enzymatic treatment that allows to achieve a finishing product suitable for coating formulations, and at the same time, a biodegradable finishing. The collagen gel product was optimized by varying parameters, such as temperature, pH, and enzyme quantity. The optimized collagen gel product exhibits a wide particle size range and retains the triple-helical structure of collagen. The leather samples treated with the collagen gel product show enhanced properties compared to those with conventional finishes. The results show that the collagen gel product enhances water vapor permeability, color stability, and touch in the finishes. However, a low resistance to wet rubbing is obtained; therefore, it is necessary to study how to improve this parameter.