With the introduction of new innovations, the banking and financial sector has undergone enormous changes. The rise of automation has led to customers expecting smooth and hassle-free processes. Every financial enterprise needs to adopt and create an easier process for lending and credit assessment.
Analysing bank statements is one of the crucial steps of the lending activity. An enriched report of prospective borrowers’ account statements is the key to the right decision-making as this presents a comprehensive report with key insights and trends observed in the applicants’ financials.
However, financial statement analysis comes with its set of challenges. Some of the common lending challenges faced by banks and NBFCs are:
Manual inspection
Financial analysis is a very tedious and daunting process, requiring a lot of information and paperwork. Human work could take days for the evaluation of these documents. To satisfy the expanding demands of the business, the enterprises require more workforce, thus adding to expenses. Dependency on manual work can be extremely problematic, if the person is absent or leaves the company it could disrupt the workflow.
Data entry errors
Data accuracy is very important in financial analysis to make the right decisions. To determine the borrower’s financial health, a substantial amount of data needs to be validated, such as GST filings, tax figures, etc. which could lead to inaccurate data entries left undetected or even miss out on some fraudulent transactions. Moreover, bank statements are neither uniform nor consistent across various banks which increases the risk of inaccuracy. Errors in data entry, misplaced information, and human error make the process more expensive and less reliable.
Time-consuming
Lending processes can be extremely time-consuming. Parsing through pages of bank statement data is unvarying and that too when assessing transactions of large numbers of applicants. Standardizing statements from various banks with multiple formats, before analysing them takes further data wrangling.
Poor customer experience
In today’s digital era, customers are looking for simple and hassle-free processes. Because of the manual work and time-consuming processes, the turnaround times rise up. This increases the risk of customer drop-offs. It is important to turn to digital solutions to meet the shifting demands of a digitally-sophisticated customer base and improve efficiencies and experiences.
Automation can minimize all these challenges and help you have an easier financial assessment process along with providing a robust experience to all your customers.
Advantages of using a Bank Statement Analyser API for analysis
An integrated lending and credit system can help overcome many roadblocks to a streamlined lending program.
Automated bank statement analysis minimizes physical efforts while assisting in the exact risk assessment of an individual or an enterprise on a large scale. Regardless of the format or quantity of pages in the bank statement, intelligent technology can tag, collect and then present information in an analytical report - all in a matter of minutes.
Arya's BSA API makes it simple to process loans rapidly while lowering the cost and turnaround times of your application process. It offers seamless and intuitive consumer experiences along with end-to-end digitization. For a thorough evaluation of the applicant's financial history, the API provides a 360-degree perspective of their income, average balance, commitments, transaction patterns, and spending habits.
Why is Arya’s Bank Statement Analyser API the right tool for businesses?
Arya’s Bank Statement Analyser effectively ‘reads’ almost any bank statement, extracts transactions and other information, and converts that raw data into a comprehensive analytical report which helps you make quick and efficient credit decisions.
Here are some features of Bank Statement Analyzer API:
- Automated analysis with crunching of thousands of transactions to provide a quick view of the borrower’s financial health
- Supports bank statements of different formats from major banks
- Secure communication and strict adherence to privacy laws
- Anomaly detection and rule violation checks help in fraud detection
With our API you can minimize the need for paperwork and automate data extraction to reduce the number of errors that are prevalent in manual methods along with reducing time. It can be easily integrated into your existing system and acts as one of the best tools for financial statement analysis.
Our API endpoint is ready for integration on our platform- Arya APIs. To know more about the API and try it yourself for free on our platform today!
Also, explore the top use cases of the Bank Statement Analyzer API and know how you can leverage it for your business needs.
