As of 2023, the India Digital Lending Platform Market is expected to grow at a CAGR of 27.90% to USD 923 million and reach USD 3159.19 million by 2028.
This growth, however, is accompanied by several challenges, such as the loan origination process, which is time-consuming and complex, and requires several procedures to determine a borrower’s eligibility and risk.
Taking a closer look at bank statements can be particularly beneficial in evaluating a borrower’s financial health and creditworthiness. However, manually checking bank statements may be time-consuming and error-prone.
Thus, Fintech solutions like Precisa’s Bank Statement analyser can prove useful in such situations. This brief guide explains how Precisa’s bank statement analyser simplifies loan origination for lenders.
What Is A Bank Statement Analyser?
A bank statement analyser is a tool that extracts data from bank statements, categorises and analyses the information, and provides insights into a user’s spending and financial behaviour.
It helps customers identify their spending patterns, track their expenses, and have a complete overview of their budgets.
Additionally, the bank statement analyser can detect suspicious or fraudulent transactions, assisting users in detecting possible fraud or inaccuracies in their accounts.
How Does A Bank Statement Analyser Improve Loan Origination?
When it comes to loan origination, bank statement analysers can be utilised to increase the accuracy and efficiency of the loan application process.
For example, lenders can rapidly identify borrowers’ financial health by analysing their bank accounts, including cash flow, debt-to-income ratio, and spending habits. This information can drive lenders to make more informed decisions about loan approval and terms.
Moreover, bank statement analysers can assist lenders in detecting potential fraud or anomalies in the borrower’s financial history. As a result, lenders can get more accurate and comprehensive information about the borrower’s finances by improving bank statement analysis.
How Does A Bank Statement Aanalyser Work?
Bank statement analysis software streamlines the lending process by measuring a borrower’s creditworthiness.
The following are the key ways that rigorous bank statement analysis reduces risk and facilitates lending:
1. Cash balance check
To make candidate screening easier, a healthy cash balance in bank statements indicates strong financial management and raises the possibility of loan repayment. Negative cash flow is alarming and suggests inadequate financial management. Also, the loan amount determines the required balance in the applicant’s account.
2. Undisclosed liabilities
Before loan processing, analyse bank statements for irregular withdrawals. Repeated withdrawals may imply undisclosed loans or debts. Deducting business liabilities from monthly profit reveals discrepancies, and undisclosed liabilities must be disclosed. Offer a safe loan if regular deposits exceed withdrawals or liabilities.
3. Deposit pattern
Regular deposits in a bank account indicate financial stability and a consistent source of income, which increases the possibility of loan payback. Before a loan is authorised, sporadic and significant deposits must be carefully analysed and justified.
What Is Precisa’s Bank Statement Analyser?
Precisa Bank Statement Analyser is a fintech tool that automates the analysis of bank statements in order to extract essential financial data and generate reports.
The solution analyses bank statements using artificial intelligence and machine learning algorithms to give lenders a quick and reliable approach to assessing borrowers’ creditworthiness and risk.
How Does Precisa’s Bank Statement Analyser Work?
The following are some major features of Precisa’s Bank Statement analyser and how it works:
Data extraction
Once the statements are submitted to the site, the programme extracts pertinent data such as income, expenses, and account balances using natural language processing (NLP) and optical character recognition (OCR).
Pattern recognition
The application uses machine learning algorithms to detect patterns and trends in financial data, such as recurrent payments or income fluctuations.
Risk assessment
The technology gives lenders a more extensive and accurate picture of a borrower’s financial status, allowing for a more thorough risk assessment and improved loan decision-making.
Customisation of analysis
The flexible and customisable tool allows lenders to tailor the analysis to their specific needs and requirements.
Automation
By automating the analysis of bank statements, the tool can dramatically reduce the time and effort necessary to process loan applications, improving the borrower experience and increasing lender efficiency and production.
In summary, Precisa’s Bank Statement analyser plays an important role in speeding the analysis of bank statements, minimising errors and inaccuracies, strengthening risk assessment, and improving compliance.
How Can Precisa’s Bank Statement Analyser Improve the Loan Origination Process?
Precisa’s Bank Statement analyser can improve the loan origination process in various ways, including:
1. Streamlining the application process
Precisa’s Bank Statement analyser can significantly reduce the time and effort necessary to process loan applications by automating the breakdown of bank statements. This can improve the borrower experience by making loan applications easier and more convenient.
Furthermore, by lowering the time and effort required for application processing, lenders may process more applications in less time, enhancing their efficiency and production.
2. Reducing errors
Manual bank statement analysis is prone to mistakes and inconsistencies, resulting in inaccurate loan choices and higher risk for lenders.
Precisa’s Bank Statement analyser analyses bank statements using complex algorithms, decreasing the likelihood of errors and inaccuracies in loan decision-making. This can increase the overall quality of loan decisions, lowering lenders’ risk and increasing the borrower experience.
3. Enhancing risk assessment
Precisa’s Bank Statement analyser can give lenders a more accurate and detailed picture of a borrower’s financial status, allowing for a more thorough risk assessment.
The technology can spot potential red flags and assess a borrower’s creditworthiness more precisely by analysing bank records and other financial data. This lowers the danger of default and raises the likelihood of loan repayment success.
4. Improving compliance
Lenders are subject to various legal regulations regarding loan origination, including enforcing data privacy, anti-money laundering (AML), and Know Your Customer (KYC).
Precisa’s Bank Statement analyser enables lenders to meet these criteria by providing a safe and compliant platform for analysing bank statements. This technology can assist lenders in identifying potential AML and KYC concerns, lowering the risk of regulatory fines and penalties.
To Sum Up!
Bank statement analysers enhance efficiency, reduce costs, and improve lending decisions by detecting red flags or fraudulent activity. These are also powerful tools for lenders looking to determine creditworthiness and streamline loan origination.
Pecisa’s Bank Statement analyser offers a powerful solution to the challenges posed by the manual examination of bank statements, a crucial part of the loan origination process.
The AI-powered analytics technology can rapidly identify problems in bank statements by expediting the analytical process. It also provides user-friendly dashboards that provide crucial insights to assist businesses in making sound lending decisions.
Lenders can use Precisa to evaluate if a loan application should be granted or declined, as well as the terms that should be supplied if the loan application is approved. Credit scores, financial paperwork, collateral, and market trends are all factored in. This platform is suited for all lending platforms thanks to its built-in security measures, customised workflows, and trend analysis.
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