Globally, with the advent of disruptive technologies and changes in consumer have often had a great impact on credit organizations, especially in lending loans to customers.There is a proliferation of smartphones and mobile devices in organizations,and the credit organizations have also started venturing into such advancements to tap into untapped consumer sectors and broaden their portfolios. This has led to the financial services companies adopting digital and specially the FinTech companies to tap into this segment for their loan products leading to greater financial inclusion. The global digital lending platform market is expected to reach USD 12.12 billion by 2023, at a CAGR of 18.7% during the forecast period 2018-2023, as per an international survey.

Thechallenge for the financial services companies is to do a credit check of individuals, especially those who cannot offer any collateral and the only way to establish creditworthiness is to analyze the Bank Statement of individuals.Today, most of the financial services companies use a huge team of credit analyzers whose task is to manually scrutinize and analyze the Bank Statements.

CloudPrisma understand the challenge and leverages its digital expertise in AI, ML & RPA to automate, simplify, andmanage the end-to-end loan processing life cycle and reducing the turnaround time for transactions but also improving accuracy and efficiency of processes in credit organizations. While we present below a more simplistic Automated Bank Statement Analysis, the same or similar rationale can be extended use digital tools to Automate Credit Worthiness Checks of individuals or companies based on the other sources of information to make a credit decision –

• Antecedent Information - Antecedent information presents a clear picture of the type of business the potential customer operates. There are three primary sources used to collect antecedent information: firm’s credit application, credit reporting agencies, and tradegroup meetings. Mostly used in New Customer Credit Investigation
• Credit Application data – Mapping dataon to the  set knowledge base of the financial services company to arrive at a credit score
• Credit Agency Report & Trade Group meetings – To understand borrower’s character, history, any litigations,meeting financial obligations etc.
• Current Banker relationship – To understand deposit relationship & line of credit
• Financial Statement – Analysis of Audited or unaudited, along with accompanied notes. Operating margins, financial ratios etc.
• A combination of the above

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CloudPrisma Automated Bank Statement Analysis Solution studies and analyzes the financial transactions of borrowers i.e. outflows or debits and inflows or credits over a period of time, based on their bank statements. A bank statement is acritical document to measure the creditworthiness of a loan applicant, whether it is an individual or an SME. Cloudprisma has expertise to develop an automated approach of bank statement analysis to analyze bank statements, combining powerful techniques with a learning engine that provides real-time analytical capabilities. The analytical output helps organizations solve their existing pain points like physical collection of documents,slower turnaround time, high manual effort, and lower productivity, all of which lead to customer dissatisfaction.

The Bank Statement Analyzer (BSA), being completely automated, eliminates errors arising from manual intervention. The automation reduces manual effort freeing up manpower for core activities and increasing overall productivity.Also, BSA enables the possibility of analyzing multiple bank statements and converting into meaningful financial reports that help Banks, NBFCs and Financial & Regulatory Agencies in credit assessment and taking decisions in just a few minutes.

The BSA generates a real-time comprehensive bank statement analysis report for uploaded or fetched bank statements giving a 360-degree view of the loan applicant’s financial health. This helps you in quick credit assessment and real-time decision, thus improving customer satisfaction resulting in repeat customers and customer loyalty.

Bank Statement Analyzer can recognize more than 100 banks’ statement formats with almost 100% accuracy and integrate easily to existing systems.Through categorization and statistical analysis on the recognized raw data in bank statements, the product generates valuable financial status information for credit scoring and modeling usage. Also, it performs effective fraud detection by analysis on file modification history and correctness of bank balance.

How does Bank Statement Analyzer work?

• Reading bank statements:a. Online – via Net Banking Fetch and Upload Statements
  b. Back Office – via Upload of statement in pdfs or scanned copies + Info: Bank Name, Account type, File Password through SAAS web API
• Assign Labels
• Assign Categories
• Transfer type classification
• Information recognition and verification
• Obligation Identification
• Fraud Risk warning identification
• Analyzing the statistics
• Result output – Standard JSON, excel download link

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Use Case Scenarios

• Income Accounting – identify Salary, Other sources of Income, Interest earned
• Counting Expenditure – Daily expenditure, Credit Card payments
• Measuring Financial Health – Receipts,Deposits and Withdrawals
• Salary Analysis and trends
• Maximum Balance Analysis
• Cash Deposit Analysis
• Investment Analysis
• Average Monthly Balance
• Negative Balance Analysis
• Average Quarterly Balance
• Penalty Analysis
• Monthly Credit Card Amount

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Features

• Provides 360-degree view of the applicant’s financial health
• Complete digitization of bank statements
• Independent API for seamless integration with other application
• Identity and document verification

CloudPrisma solution business benefits

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What makes CloudPrisma Bank Statement Analyzer different?

• Reduction in Costs – The automated analysis process significantly reduces costs in man force comparing with the traditional manual process
• Time Saving – Significantly shorten the turnaround time for the processing of loan applications
• Catering to Self Employed users – Help the lender analysis the financial condition of borrowers who lack tax records  or pay stubs
• Better Assessment of Risks – Help the lenders assess other liabilities of borrowers, including existing liabilities and recurring payments
• Detailed extensive business rules embedded inAPI for Credit Scoring accuracy.
• Optimized for cloud deployment with minimum capital expenditure

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