Financial Institutions can integrate with the Perfios APIs and enable quick loan approval. Perfios provides the following features in the Bank Statement Analyser (BSA):
Features
Real-Time Transaction Analysis
The PDF reports of financial statements are used to extract the complete range of transactions in their raw form. Based on various aspects of the transaction, the algorithm carefully analyzes and scrutinizes the transaction to determine the sources of income, such as rent received, salary, gains on investments, and the purpose of expenses, such as rent paid, income deposited, investments made, utility payments, etc. Using the computation of income, as well as the impending, inevitable expenses, this intricate analysis determines a customer’s creditworthiness.
Furthermore, there are the recurring debits and credits, which reveal the regular income sources or investments generating consistent profits and the constant, largely unavoidable expenses such as rent, debt repayments, utility payments, etc.
These recurring debits and credits provide valuable insight into an organization’s regular expenses and income, as well as insight into how financial resources should be allocated for discretionary expenses, mostly one-time expenses, which can be controlled to optimize savings.
Instant Counterparty Identification
The algorithm has 90%+ accuracy in counterparty identification. Counterparty identifications provide party-wise credits and debits and hence can be analysed to determine which parties generate the most revenue and the parties that incur the most expenses.
In business, it can be your biggest consumers, and your biggest suppliers. Accordingly, business plans can be drawn to augment and enhance the revenue from customers, down below in the party-wise credits, and to reduce the dependence on particular suppliers occupying the higher berth in party-wise debits.
Details on Related Party and Internal Transfers
For business reports, leverages Perfios OneView to determine the related parties and internal transfers. Related party transactions and internal transfers may have disproportionately or unduly inflated the credit side or deflated the debit side or vice-versa, providing a skewed picture of the financial position of the firm.
Such transactions are merely standard procedures or red tape, that does not determine any gains or income and losses or expenditures. By identifying the related parties and internal transfers, the client can extricate the transactions pertaining to them to accurately assess and determine the creditworthiness of the business.
In-Depth Balance Level Analysis
The report shows Monthwise daily balances that can be further examined to pinpoint needle-moving transactions or inordinate transactions that impacted the balances to a noticeable degree. This can also help in determining when to schedule recurring payments such as instalments on a loan, based on the commensurable balance available on a particular date.
Additionally, the report contains a section nth day average balance, which shows the average balances on a quarterly basis on a specific date of every month, as well as the average balance for the entire duration.
Average closing balance, minimum closing balance, number of days-negative balance such data points are examined to determine the risk ingrained in granting a loan to the user. Balance level analysis is primarily pertinent for decisions regarding credit extension to users. In addition, it could be used to decide an EMI deduction date which the analyzer also suggests.
Identification of Suspicious transactions and alerts
It includes a section “Alerts” that highlight odd or unusual transactions that can raise alarms about reporting legitimacy or that require more in-depth analysis because of their peculiarities. Users can determine whether it is a legitimate transaction under unusual circumstances or if it is a spurious or fraudulent transaction by disentangling these transactions and analyzing them individually.
There is an alert for balance tally mismatch when the reported balance does not match the actual amount after adjusting for the transaction amount. Hence, further investigation is required, to uncover if any transaction is being falsely manufactured or whether there is any maliciousness embedded in the reports.
Similarly, there are other alerts such as suspicious ATM withdrawals, transactions on bank holidays, RTGS below the Minimum Limit, round figure tax payment, etc. Such transactions would certainly raise some eyebrows as some of them are outrightly inconceivable or impossible which will reveal any scam or trickery, while there are some transactions plausible but extremely rare that necessitates further investigation. Immediate big debits after salary or a high amount of cash deposits, withdrawals are also detected.
Multi-format, Multi-channel input support
PDF statements tested across 250+ formats covering the top 40+ banks facilitates seamless extraction of relevant data from PDF reports of Bank statements. It’s a comprehensive solution supporting analysis of Salaried, Self-employed and Business accounts.
It facilitates secure data handling with configurable data storage and deletion policy to ensure that the control of data stays with you. Output is aggregated at an account number level – If multiple statements from multiple account numbers are uploaded, the statements are aggregated at an account number level
Let us look at the benefits of Bank Statement Analyser that distinguish Perfios from the competitors:
Benefits of Bank Statement Analyser
Simple, Fast and Powerful
Straight through processing (STPs) ensures minimal intervention from the RM. Real-Time 360 degree report of the borrower’s creditworthiness is available in multiple formats in JSON, Excel and PDF. The Digital-first approach leads to a reduction in physical touchpoints during document collection from customers and reduces the overhead of the underwriting process. Lowering TAT for loan assessment cycle, leading to quick lending decisions strengthening the loan book in terms of volume and value.
Competitive Edge
Triangulation with other Perfios services to further enrich data like fetching Negative Alerts, Related Parties and Employment Status via EPFO. Services such as OneView, GST, are leveraged to fetch related parties, internal transfers, transactions which can be excluded as they are not indicators of true income/expense. Also, EPFO service of Perfios is leveraged to detect whether the person is still employed with the firm which is marked as Employer. These services leveraging the product portfolio of Perfios is a unique and distinct service provided which distinguishes us from the competitors.
Lower Risk of NPAs
Traditional ways of measuring credit scores may not give a clear picture and lead to high NPA. Perfios BSA’s incisive dissection of financial statements and concise evaluation of transactions provides a clear picture of the financial stability of the firm and its ability to pay off loans and debts
Increase in Loan Disbursements
Perfios’ BSA helps grow your loan book with appropriate risk assessment via advanced AI/ML techniques. Legacy processes have been observed to leave out deserving, scrupulous customers from the credit net while being deceived into granting considerable funds to unscrupulous borrowers with no ability or willingness to pay. Perfios’ BSA meticulous examination of financial statements helps determine the risk-ability of a firm or an individual and ensures that scrupulous, deserving customers are provided with the appropriate loan options.
Tailored Solution
As part of rapid adoption, BSA facilitates flexible deployments and integrations with a client’s current credit process. Configurable Systems, customer data input and output reports can be customized basis requirements. BSA ensures smooth, frictionless integration with financial institutions’ existing systems. White labelling features allow you to configure minute aspects of the product. Configurable output ensures minimal changes in existing third-party integrations. Customer Support is provided for resolving queries or issues quickly and efficiently.
Additional Offerings in the Roadmap
- Integration of Account Aggregator flow
- UI and PDF Report
- Net Banking login via multiple banks
- Evolved Spending Pattern Analysis
- More banks to be added for Netbanking Fetch
Conclusion
Perfios Bank Statement Analyser is built with the laser-focused vision of easing the credit assessment of banks and ensuring scrupulous, and creditworthy customers are provided with appropriate loan options. Furthermore, go past the smokescreen propagated by dishonest and unreliable customers to give a false impression of creditworthiness, and be aware of their deceit by examining their financial statements carefully.
