Bank Statement Analysis Time Reduced: Power of Precisa’s API

Extending credit inherently often carries risk for lenders, such as:

• Borrower’s inability to repay due to job loss, unexpected expenses, or poor financial management.
• Economic downturns can lead to increased defaults across an entire portfolio.
• Lenders may fall victim to identity theft or false information provided by the applicant.

Many lenders rely on gaining deeper, more accurate insights into a borrower’s creditworthiness to mitigate these risks. This empowers lenders to make informed decisions, ultimately reducing the likelihood of default.

A bank statement analysis tool can help lenders gain insights into applicants’ financial history to gauge their creditworthiness and financial health. 

However, not all tools are created equal. Many tools lag in delivering real-time, accurate analyses due to reliance on outdated algorithms or limited data processing capabilities.

Let us discuss why the bank statement analysis tool by Precisa stands out and how it helps lenders reduce their credit risk and processing time.

What Is Bank Statement Analysis?

Bank statement analysis is a process that enables lenders to review and interpret the transactions documented in the applicant’s bank statement. The lenders systematically review the income, expenses, and other transactions for a specific period to assess the business’s financial health. 

Carrying out this extensive process manually comes with multiple challenges, including: 

• Inadvertent errors in credit assessments
• Lack of speed in loan processing
• Challenges in scaling to accommodate new customer segments
• Difficulties providing a seamless borrower experience

Cloud-based, automated AI-powered bank statement analysis tools help lenders overcome these challenges and transform their underwriting process.

Factors Contributing to the Growing Popularity of Bank Statement Analysis Tools

Lenders are increasingly embracing modern tools for risk assessment of loan applications. A few reasons driving this adoption are:

• Shift Towards Digital Statements 

The shift towards convenient digital statements has led customers to favour them over traditional physical ones. This transition streamlines the collection and analysis process using automated tools and ensures data is easily exported in standardised, searchable formats. 

This seamless integration of digital statements enhances data handling efficiency, making the lending process more streamlined and less prone to errors.

• Growth of Digital Lending

The rising popularity of digital lending also contributes to lenders relying more and more on this tool. Bank statement analysis tools enable lenders to automate and streamline their lending processes and make credit more accessible to all sections of the country. 

3. Increased Awareness of the Benefits

As lenders become increasingly aware of the advantages offered by bank statement analysis tools, such as significantly reduced processing times and enhanced accuracy in assessing creditworthiness, they are more willing to integrate them into their lending workflows.

How Can Precisa’s New API Help Speed Up Bank Statement Analysis?

Bank transactions are excellent indicators of a business entity or individual’s income, expenses, and spending patterns. The data from the bank statement, when combined with other financial data, outlines a reliable picture of the business’s current performance and future growth prospects. 

Precisa offers a cloud-based solution with intelligent automation to assist decision-making in insurance, wealth management and lending.

The bank statement analysis tool aims to simplify data analysis with its easy-to-use web application. The applications extract data in real-time from the source and offer actionable insights. 

Use Precisa As a Web App or API

Lenders can use the solution offered by Precisa as a stand-alone Web App or integrate it with existing loan management systems using APIs.

APIs are Application Programming Interfaces that allow lenders to integrate statement analysis with the existing applications or the platform. These serve as digital connectors; in this case, the API helps lenders extract and process the bank statement data seamlessly without manually searching and processing the data from the statement. This empowers lenders by transforming raw data into actionable insights.

Benefits Offered by Precisa’s API to Lenders

Lenders can improve their lending process and manage risk better using this tool. Let us discuss some of the benefits the API offers to the lenders:

• Hassle-Free Integration

The API integrates seamlessly with various financial platforms without the need for changes in the existing systems. This ensures that there is no disruption in existing processes, eliminates the need for training employees, and is user-friendly.

• Improved Efficiency and Precision

Manual scrutiny of bank statements is labour-intensive, time-consuming and prone to errors. Lenders can tackle these problems using Precisa’s API; automation makes the process quicker and more accurate. Using the new API reduces the processing time by 5X.

Therefore, lenders achieve real-time access to current and historical statements, enabling quicker decision-making. Reduced turnaround time and fewer errors result in improved operational efficiency for lenders and satisfied customers.

•  In-depth Analysis and Insights

The API provides lenders with in-depth, comprehensive analysis that helps them gain insights beyond basic transaction categorisation. Lenders get information on borrower’s spending behaviour, expenditure patterns, income sources, and more. 

As a result, they get a 360° view of the applicant’s financial health, debt obligations, inflows, and spending habits, helping lenders manage the loan better through the lending lifecycle.  

• Risk Evaluation 

Precisa’s API plays a crucial role in helping lenders evaluate the creditworthiness of applicants. Lenders can assess the applicant’s creditworthiness and make well-informed lending decisions, helping them reduce their default rates. 

• Creditworthiness Score

The API extracts data from the bank statement classifies and categorises transactions, analyses the data, detects fraudulent transactions and other anomalies, and assigns an overall creditworthiness score called the Precisa Score.

The Score can help lenders identify penalty payments or direct deductions from accounts in bank statements for defaults on loans or bounced cheques. These deductions reduce the overall creditworthiness score of a borrower.

Conclusion

As the financial world evolves, conventional techniques are gradually giving way to modern, AI-powered tools. 

Precisa’s bank statement analysis tool cuts the processing time and helps lenders make more accurate decisions. It evaluates financial documents, runs fraud risk checks, and provides detailed insights to the lender. 

The software supports more than 450 Banks and 1000 formats; lenders can integrate the tool with their existing systems for a smooth, fast, and secure user experience.

Sign up for a free trial today.