Due to increased defaults impelled by the pandemic, banks, NBFCs and FinTech’s are clamping down on regulations over credit approval and disbursement. Even as many individuals and businesses seek loans to restructure their finances or stabilize operations, asset quality is taking precedence over targets. Bank statement analyzer tools are used to generate reports on a company's or individual's earnings, expenditures, and, most importantly, spending habits. As a result, most financial firms determine a customer's creditworthiness by carefully scrutinizing bank statements. Let us now look into the nuts and bolts of bank statement analysis software.
BANKING STATEMENT ANALYZER: A BOON
Let us try and understand the intricacies of a bank statement analyzer. In real-time, the bank statement analysis software generates an all-inclusive report of bank statements. The following are a few points that will help you understand the advantages of using a bank statement analyzer.
- It provides a 360-degree view of the financial health of the borrower. This helps in determining the capability of the customer to pay.
- The tool meticulously scans the customers’ transaction history and provides precise results.
- The Bank Statement Analysis tool interfaces into legacy systems without a hitch and categorizes and provides reports according to your specifications.
- The bank statement analysis report is entirely automated, which eliminates human mistakes, lowers manual efforts, and boosts total productivity.
- The Bank Statement Analyzer solution shortens the loan assessment and loan origination timeframes, improving customer satisfaction and customer retention rates in the process.
Need for Bank Statement Analyzer
Banks and financial institutions conduct background checks on loan takers and determine their eligibility for loans. Underwriting, in the case of banks, entails scrutinizing applications for loans to get a handle on the pertinent risks. Bank statement analysis tools are used to retrieve data from bank records and analyze them for cash flows. Through statement analysis, banks can identify the sources of income, total yearly income, paid interest, and other liabilities. This assists them in determining the loan amounts that loan takers are eligible for and in allocating them accordingly. Bank statement analysis software helps lenders exclude borrowers who have had a troubled credit history to prevent pitfalls while lending money.
The bank statement analysis tool is also used by NBFCs and Fintech start-ups to look into ITR filings. Income tax estimation assists lenders in assessing the amount paid as taxes by individuals annually to determine whether the transactions taking place are legitimate. To detect financial fraud, bank statement analysis software employs intelligent OCR to recognize patterns in repetitive transactions. Statement analysis models compare business ledger transactions to account statements. The disparity in transactions aids in detecting fraudulent activity in accounts; accounts are verified and validated to ascertain if the information is correct.
Lending Experience with a Bank Statement Analyzer
A bank statement analyzer makes the lending process much easier. In comparison with the archaic system of traditional banks, FinTech's have unlocked several doors for small businesses through insights gathered from analyzing alternate data, enabling lending based on cash flow. FinTech's have aided many SMEs by providing loans based solely on a borrower's creditworthiness and without the use of collateral. The comprehensive report generated by the bank statement analyzer includes all debit and credit details, inflow and outflow, dues and penalties, etc. This aids in quickly determining a customer's loan eligibility and understanding their financial health. As a result, the lending experience becomes seamless and non-taxing.
Best features of ScoreMe’s Bank Statement Analyzer
ScoreMe's bank statement analyzer software is a cutting-edge AI-powered tool. By verifying the borrowers' transactions, the software helps users form independent opinions. It creates a comprehensive profile of borrowers by untangling the complexities of assorted transactions and by obtaining information from varied sources. The software recognizes income and expense patterns automatically and facilitates a smooth underwriting process, allowing for a quick and easy lending process.
Conclusion
The bank statement analyzer tool examines cash flows and helps businesses, previously ineligible, obtain loans. It enables financial institutions to make faster decisions about borrowers’ financial health. It can handle massive amounts of data efficiently and provide customizable options. We hope that the discussion above has helped you understand how a bank statement analyzer works and how it has aided financial institutions in providing credit to borrowers.
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