Financial data is an essential part of a company’s operations, which is used to obtain an accurate picture of an organisation’s financial health through properly maintained and well-presented financial data.
Financial data analysis tools (financial data analytics) thoroughly examine a company’s financial data and prepare easy-to-follow reports. It enables businesses to make sense of their financial data and put suggestive measures into practice.
Firms can make effective financial decisions by examining the data’s insights using a financial data analysis tool and anticipating the models to leverage the business.
Financial data analysis tools assist businesspeople in making critical decisions by giving timely information, thus increasing the company’s value. Financial analytics also help the business in asset management, including the management of cash, equipment, inventory, and other resources.
What Is A Financial Data Analysis Tool?
A financial data analysis tool simply assesses your financial statements (for example, a bank statement). Banks, financial institutions, and audit firms carry out bank statement analysis for various purposes.
However, manually combing through documents and bank records is time-consuming and unreliable, particularly when you have to compare the financial position of multiple accounts. The lack of uniformity and consistency among banks in their bank statements also leads to an excessive reliance on paper-based records, which takes time.
A financial data analysis tool minimises human effort while assisting in the risk assessment of an individual or company on a large scale. Regardless of the format or number of pages in the bank statement, a financial data analysis tool can tag and collect information in an organised dashboard in minutes.
Benefits of Financial Data Analysis Tool in Decision-Making
A financial data analysis tool can be integrated into the existing system making the entire lending process smoother. The process, which used to require at least a day of manual work, may now be easily automated and used to disburse more loans with accurate data.
1. Quick Credit Assessments
The financial data analysis tool allows users to upload their files directly into the system that can be assessed in real-time. Hence, banks may lessen their reliance on paper forms as well as decrease the likelihood of human error when extracting data manually.
This way, you can quickly scan through all information related to the creditworthiness of the prospective borrower and make decisions on whether to approve a loan or not.
2. Optimising the Loan Approval Process
A financial data analysis tool enables the lender to cut down on application turnaround and save money & time.
End-to-end digitalisation of the entire process allows the lender to exemplify customer experience and increase loan approval rates.
The entire lending procedure can be moved online, enabling applicants to immediately upload their bank statements to the Loan Management System (LMS).
Benefits of Using Precisa’s Financial Data Analysis Tool
Precisa’s easy-to-use web application simplifies the bank statement analysis process by allowing the upload of bank statements effortlessly and presenting actionable insights in a visually attractive, sophisticated dashboard.
The financial data analysis tool from Precisa is an all-in-one AI-powered analytics platform that can identify any discrepancies in bank statements immediately. It assesses borrowers’ trustworthiness, so lenders can quickly and accurately make decisions.
The financial data analysis tool empowers error-free analysis and reduces the necessity for manual labour. Banks and other financial institutions can quickly make smart loan decisions with the help of this tool.
Features of Precisa’s Financial Data Analysis Tool
This advanced tool is designed to scan through bank statements and gives access to the exact information needed for specific time frames in just minutes. Explore some of its most prominent features below:
1. Application Programming Interface (API)
Precisa’s automated tool simplifies complex transactions and generates a single accurate report that is easy to understand. It is simple to integrate into any application you are using and, through secure data transmission, offers the best user results.
2. Account Aggregator Framework
Precisa is already configured to function with the Account Aggregator Framework. For example, the Loan Origination System (LOS) needs to assess a borrower’s creditworthiness. For this purpose, the user agrees to share bank account information, and then the LOS retrieves the information and uses Precisa to categorise it. After that, the financial data analysis tool runs an analysis to look for irregularities.
3. Accurate Auto-Detection
After a statement is uploaded, Precisa immediately extracts more than 90% of bank information automatically with 80% accuracy. Additionally, a report with the account number, type, branch, IFSC, and transaction information is quickly generated for analysis and verification.
4. Categorisation
Precisa accurately classifies transactions by identifying different types of transactions and categorising them accordingly, facilitating detailed and comprehensive segregation. For a more thorough evaluation and analysis, a Precisa user can filter and analyse the categories individually.
5. Counterparty Detection
Precisa provides the industry’s top counterparty tab with comprehensive information about a business’s beneficiaries and recipients. The details, which are broken down into credit and debit transactions, include:
- Counterpart’s name
- Amount paid/received and their share of the total inflow or outflow of funds
- Total number of transactions they were involved in
The monthly counterparty tab is useful for identifying recurring revenue contracts. It becomes a lens for comprehending the financial health of the borrower.
6. Penny Drop Account Verification and eStatement Authenticity
Precisa can weed out fraudsters and validate the legitimacy of bank accounts. To confirm the existence of the accounts listed on the statement, the financial data analysis tool uses Penny Drop, sending one rupee to the user’s bank account.
Precisa also runs a battery of format and data checks on PDF files to screen out fraudulent activities. The tests aid in identifying unexpected behaviour and statement manipulation or tampering. Precisa also assigns an authenticity rating of ‘Original,’ ‘Review,’ ‘Unknown,’ or ‘Fraud’ to aid in making data-backed decisions about lending.
7. Precisa Score
The Precisa Score represents the total creditworthiness of the person or firm under assessment. Precisa calculates this score using a proprietary algorithm, which runs from low to high risk. The algorithm considers different signals, such as volatility, overdraft and credit usage rates, and suspicious behaviour, to come up with a reliable score rating for each account.
Closing Thoughts
Precisa supports 700+ formats (in addition to the formats used by foreign banks) and more than 350 Indian banks. The support for a new bank format can also be added to the financial data analysis tool, and it will be ready in 4 to 8 hours.
Precisa registration only takes a few minutes, and the financial data analysis tool can be deployed immediately. After the registration, you can add as many users as necessary.
Precisa’s completely automated financial data (or bank statement) analysis tool comes with transparent pricing and no hidden charges. Precisa also has customised pricing models to meet the needs of different users.
Piqued your interest? Book a free demo today for more information.
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