Productivity levels are an important measure of success for ambitious lenders looking to build a long-lasting, profitable business. A recent survey indicated that seven out of every 10 employers prioritise the quality of work, while performance indicators such as targets and project completion on time are considered to be primary indicators of productivity. As more lenders focus on accelerating productivity, technology will play a key role in their ability to do so. The use of bank statement analysis by Precisa, a tech-enabled financial analysis solution, for instance, is helping lending teams bring efficiency and accuracy to lending operations.
Let’s understand how adopting this solution enables lending teams to boost productivity.
What is Bank Statement Analysis by Precisa?
Bank statement analysis by Precisa is an automated solution that enables lenders to analyse a potential borrower’s bank transitions in depth and make lending decisions accordingly.
The adoption of this solution helps lenders in multiple ways. For example:
- Lenders can more accurately assess the risk associated with borrowers, potentially predicting their ability to repay a loan in full and promptly.
- Lenders can detect the potential for loan fraud, which can cost them their reputation, sustainability of the business, and significant financial resources.
Precisa’s bank statement analysis uses a combination of Artificial Intelligence (AI), Machine Learning (ML), Optical Character Recognition (OCR), robotic automation, and cloud computing to power the analysis process from start to finish.
By using Bank statement analysis by Precisa, lenders can increase team productivity by 8X.
8 Ways Bank Statement Analysis by Precisa Boosts Productivity
Bank statement analysis by Precisa has automated several steps in the underwriting process to make it highly efficient. In turn, lending teams can save time and resources and redeploy them to other areas, such as marketing and business, that need more strategic human capital investment.
Account Aggregator Support
Lenders spend significant time collecting all the borrower data required to make informed decisions. Manually collecting such data from borrowers is time-consuming and often ineffective.
However, Precisa’s bank statement analysis is already connected to a universal account aggregator framework, which enables access to a borrower’s bank transaction data.
Such a system can also pull information from credit bureaus and alternative data sources, such as the Goods & Services Tax portal, saving lenders time and effort.
Quick Extraction of Data
Precisa can detect data transactions in Indian and international formats quickly. It then automatically extracts over 90% of the transaction details with significant accuracy within seconds of bank statements being uploaded.
Lenders can then generate reports with all of a borrower’s data, such as account numbers, types of accounts, bank branches, corresponding IFSCs, and bank transaction data, for verification and analysis.
Automated Categorisation & Risk Assessment
Assessing risk is one of lenders’ most important tasks. Precisa automates this task by precisely extracting data from bank statements and segregating it into inflow and outflow categories.
Based on the accurate classification of data, lenders can customise reports on a borrower’s financial health in more depth.
For instance, they can understand a borrower’s spending, savings, and earning patterns based on accurate and in-depth classification.
Also, manual efforts would require the use of data entry operators and manual data analysis, which can result in higher costs, delays, errors, and omissions. Automated bank statement analysis, on the other hand, makes the underwriting process much more accurate, with speedier and data-driven outcomes.
Automated Creditworthiness Score
A credit score is typically based on a borrower’s credit history. However, underwriting loans do not provide enough data to predict a borrower’s ability to repay a loan in the future.
This is where a comprehensive analysis of all financial data, including up-to-date bank transaction data, credit history, and GST returns, provides a more realistic picture of a borrower’s financial situation.
Precisa Score
Precisa’s bank statement analysis solution offers a loan repayment probability score based on detailed analysis. Known as the Precisa Score, this metric supports lenders in making data-driven underwriting decisions.
This metric can help lenders reduce the number and loan ticket size of non-performing assets (NPAs).
Superior Application Program Interface (API)
Lenders find it easy to integrate Precisa’s bank statement analysis solution into any other existing application with Precisa’s extensive Application Programming Interface (API).
This saves teams time in the integration process, and they can deploy and start using the software quickly. This is a scalable interface that offers advanced analysis solutions as well as comprehensive financial operations management.
Support With Customised Solutions
There’s a growing trend of lenders tailoring loan products and solutions to borrowers’ real-time needs rather than offering standard products. The issue with the latter is that loans become unaffordable to a large segment of borrowers, especially those from Micro, Small, and Medium Enterprises (MSMEs).
However, customising solutions for every borrower requires time and a closer look at their very diverse financial needs. Bank Statement Analysis by Precisa addresses this issue by recommending solutions based on the borrower’s transaction patterns and needs.
Armed with this knowledge, lenders can better understand borrowers and offer relevant solutions cost-effectively and in a timely manner to a spectrum of borrowers.
Counterparty Tab Support
Another key value-addition of Precisa’s solution is that it automatically extracts data on the other party, also known as counterparty, in a banking transaction. A monthly Counterparty tab offers lenders an insight into monthly receipts or payments made between the borrower and a counterparty.
It also isolates information such as the most recurring revenue contributors and expense-related counterparties across all bank accounts. This information creates transparency, enabling the lenders to know all the parties connected to a lender through financial transactions.
Authentication of Data
Precisa’s software solution has capabilities to check all PDF documents of bank statements and confirm authenticity. The checks are of three types:
- Detecting tampering of documents to present false data.
- Checking for fraudulent and unusual activity on the borrower’s account. The software, for instance, uses a Penny Drop practice, where it deposits INR 1 into a customer’s bank account. The aim is to verify the genuineness of the beneficiary’s bank statement.
- Checking for identity theft by cross-checking a borrower’s identity data across documentation
The Takeaway
Today, strategic use of technology is considered to be one of the most important ways to boost productivity and free up team members’ bandwidth to focus on fulfilling important goals and tasks.
The adoption of automated bank statement analysis by Precisa, for instance, is helping lenders transform their operations and function with highly productive, customer-centric, and lean teams.
Presica’s comprehensive and seamless bank statement analysis solution simplifies and automates the process. The software provides actionable insights on a customisable dashboard, thus helping companies make informed business decisions and minimise room for errors.
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