The increasing number of Non-Performing Assets (NPAs) and fraudulent activities in banks and NBFCs today call for severe scrutiny of credit sanctions. This requires a strict evaluation of the applicant’s financial health to understand their position to service the debt. It involves assessing the loan applicant’s creditworthiness based on specific norms, standard procedures, and various processes.
However, conducting a detailed and systematic credit appraisal is a comprehensive process – if done manually. While a bank statement analysis is an effective way to get an idea of the applicant’s ability to repay the loan, it requires considerable effort.
To begin with, it requires parsing through page after page of bank statements, which in itself is tedious. In addition, bank statements are often neither uniform nor consistent across different banks, which adds to the difficulty of the task.
But the good news is that there is a more efficient way to do it— A bank statement analyser (BSA)— a software for a smarter credit evaluation process.
Not only does this software efficiently manage the tedious task of evaluating bank statements but it also ensures that there are negligible chances of an improper credit assessment.
Revolutionise Your Lending Experience With Precisa — The Perfect Bank Statement Analyser
Precisa is a smart system that gives a 360-degree view of the borrower’s income flow, net balance, obligations, transactional patterns and other aspects of financial behaviour to get a complete understanding of the borrower’s financial status.
Here’s how Precisa can level up the credit appraisal process for lending institutions:
1. Creates an enriched report to give a financial health summary
Precisa prepares an in-depth report with crucial insights based on trends observed in the borrower’s income, obligations, spending pattern, etc. It also supports multiple bank accounts, different banks and types of accounts as well. Precisa provides a frictionless experience by providing a report within seconds.
These comprehensive real-time reports assist in quick credit assessment at scale and help in making sound decisions based on the insights.
2.Gives scores and assesses the borrower’s creditworthiness
Precisa is a solid bank statement analyser that extracts data from bank statements and gives a scorecard for the borrower’s capacity to repay the loan. Using the software algorithm, it calculates the Precisa Score, which reflects the potential borrower’s creditworthiness. It is computed taking into account various red flags and indicators.
The BSA’s automated computational engine also assists lenders in assessing the applicant’s inflow and outflow of funds. In addition, it also identifies the average daily balance and comes up with a Volatility Score that gives a fair idea of the risks that may affect their ability to repay the loan.
These scores allow financial institutions to make quick credit judgments and also help to further identify red flags.
3. Identifies Obligations and Eliminates Risks
The BSA engine also categorises spending habits in the bank statement analysis reports. These reports inform the lending institutions if there are any loan obligations.
It gives a clear picture of the overdraft (OD) analysis. Also, it informs the lenders about regular supplier payments and other triggering cash flow gaps that they should be aware of. It also sheds light on other negative activities such as loan and cheque bounces. These are some valuable statistics for weeding out potential defaulters and lowering loan default rates for lending institutions.
4. Allows aggregation across several bank accounts
During analysis, one of the biggest challenges for lending institutions is integrating bank statements that feature in different formats, narratives, and layouts. This robust BSA software uses machine learning algorithms to perform a deep analysis, categorising and analysing bank statements from multiple accounts.
Overall, it helps ease this complicated process and saves a substantial amount of time.
5. Identifies spending patterns and detects circular transactions
The bank statement analyser helps identify borrowers’ spending habits and reveals their spending behaviour and other critical data. This smart mechanism also detects the flow of funds between the holder’s different bank accounts and indicates circular transactions.
Spotting circular transactions without software can be tricky and tedious at the same time. Precisa makes sure that all such transactions show up in the system and takes no time to assess such activities.
6. API integration within seconds
A smart business statement analyser focuses on giving clients a good user experience. Only a few simple steps are required for users to integrate Precisa’s analytics capability with their existing systems. As a result, it not only saves time but provides users with a pleasant, fast, and secure experience.
7. Allows easy exporting of the analysis to excel sheets
A key feature of an ideal bank statement analyser is its ease of use. Precisa’s bank statement analyser caters to just that — It supports 350+ banks and 650+ financial statement formats and helps users understand data easily. It also helps to effortlessly export the analysis to MS Excel Formats, both on the aggregate and individual account level.
8. Allows customisable data categorisation
This robust mechanism also caters to customising needs. For example, if lenders have special rules to apply to their bank statement analysis, it can be smoothly linked with their existing systems and generate custom reports based on their requirements.
It helps underwriters examine, search for, and access all transactions in a single search window. It also allows for the customisation of criteria to generate specialised reports, such as a COVID impact study report to examine financial records from the lockdown, pre-lockdown, or post-lockdown periods or a behavioural impact on the applicant’s transactions.
Being entirely automated eliminates the need for any manual intervention, allows for customisations wherever necessary, and increases overall productivity.
Why Choose Precisa’s Bank Statement Analyser?
The perfect BSA engine is expected to provide a thorough, in-depth evaluation summary by deciphering individuals and business entities. In addition, it should allow reviewers to easily and quickly click on various activities and dig deeper into specific transactions to make informed credit choices.
Precisa is leagues ahead of today’s legacy system when it comes to providing a 360- degree view of the customer’s financial health. In addition, it is rock solid in detecting fraudulent practices and spotting red flags. This assists users to make informed decisions for cash flow-based lending, insurance underwriting, and financial planning.
With its seamless integration into your existing lending management system, Precisa’s BSA software allows you to revolutionise your bank statement examination process completely.
Therefore, if you’re seeking a reliable Bank Statement Analyser that’s quick, accurate, and simple to use, look no further! Take Precisa’s free trial starting today!