India’s banking sector and NBFCs have played a pivotal role in addressing the financial needs of individuals and businesses across industries.
These institutions have adopted agile processes by developing innovative financial products that cater to niche markets and bring mainstream lending to the forefront.
Risk management, a principal factor in the financial sector, emerges as a new challenge as a result of increased global competition, more deregulation, and the introduction of novel goods and delivery channels.
The ability to assess risks and take appropriate measures is critical to success. Risk takers will thrive, effective risk managers will prosper, and risk-averse individuals will perish.
Finezza has been consistently delivering value to the financial market with its varied product suite, consisting of a chunk of credit and lending services. However, another central area that Finezza focuses on is the risk management factor for banks and NBFCs through its comprehensive Analytics feature.
So let’s learn more about how the different offerings of Finezza have been successful in simplifying risk management for these institutions.
How Finezza’s Comprehensive Analytics can Simplify Risk Management for Banks and NBFCs
Finezza’s product suite is structured to provide end-to-end lending solutions for any lender in a manner that eases financial analysis and encourages quick decision-making.
Risk is a transaction that results in a loss with a reasonable likelihood that can be predicted, measured, and mitigated.
Here are some essential and note-worthy lending solutions offered by Finezza to help mitigate the risks:
Finezza’s Comprehensive Analytics
Analytics play a crucial part in conforming to the highest standards of the decision-making process in virtually any business.
After all, analytics reports are based on analyzing myriad operational events during the entire lending lifecycle.
Finezza’s comprehensive analytics suite already contains several function-specific pieces.
It is engineered to recognize the pattern of different interactions that may take place during the entire lending tenure and enrol machine learning & big data analytics to generate meaningful reports for the organization.
Once the portal recognizes a set pattern, Finezza’s Analytics suite ensures that the quality of the information to be generated gets richer and deeper with each usage.
Along with this, users have the flexibility to create custom reports which can be accessed via the portal, email or even the in-house interactive chatbot.
This feature adds great value as the top management can glance at essential reports on the go and continue to focus on core work.
Document Identification Framework
The loan application and allotment process entail following a set procedure of norms, of which having a proper document identification framework is of utmost importance.
Documents are akin to data in the lending world and should be procured and stored safely.
Thanks to Finezza’s advanced document identification and verification features, lending institutions can rely on technology to power their lending processes.
It is possible to extract relevant information such as names, numbers, addresses, faces, transactions and much more simply from the images of verification documents.
Some of the documents that can be quickly parsed and extracted data from are Aadhar card, PAN card, Bank statement, GST Returns, Cheques, Balance sheet, electricity bills, etc.
This feature helps save precious person-hours considerably, not to mention the increased workflow speed with absolutely no chances of manual errors creeping in.
It means institutions will be able to predict or foresee both financial and non-financial risks like strategic, funding, legal, political risks and so on.
It also provides accurate tagging of all the data points, which facilitates automatic validation of documents, thus helping lending institutions to reduce their turnaround time to a great extent.
Credit Bureau Data Analytics
Finezza’s product suite is tailored to provide valuable credit appraisal services to its customers.
Its data analytics platform for credit bureaus offers a simplified view of the borrower’s credit scores based on reliable credit data sources.
The credit market is ever-expanding, and banks, NBFCs and other such financial institutions require proper controls and processes to make risk-free decisions.
Finezza’s credit bureau analysis platform has collaborated with four institutions such as CIBIL, CRIF, Experian, and Equifax to churn out reliable reports backed by factual data.
Some of the critical features of this solution include offering a deep look into the borrower’s loan history, repayment history, a summary of borrowings, access to important KYC information and much more.
Finezza’s credit bureau data analyzer is AI-powered and offers predictive analysis to lending institutions in managing their lending risks and making decisions based on pertinent credit data points.
How Finezza Helps Lenders Manage Risks
The lending landscape has expanded quickly within India, especially with awareness and financial literacy that has managed to reach every nook and corner of the country.
Digital lending has played a significant role in fanning the growth of the financial sector.
However, with more people and organizations applying for loans, lending institutions require robust business practices to lower the resulting NPAs that come with it.
In line with this, banks, NBFCs and other lending institutions are constantly looking for a partner that can help them absorb the huge credit demand and seamlessly simplify processes.
Besides the above critical solutions that aid lenders manage their risks associated with lending, Finezza facilitates its customers to conduct a deep bank statement analysis. Check out the bank statement analyser tool.
This feature can parse and process thousands of transactions within minutes, classify and analyze data, recognize fraudulent transactions and other anomalies, thus assisting lenders in managing their risks.
In the end, it also assigns an overall creditworthiness score for the applicant, based on deep ML-driven insights from a scrutiny of the borrower’s bank statements.
Not only this, Precisa flags suspicious activities, transactional patterns, circular transactions and gives out a volatility score that highlights the applicant’s behavioural patterns.
The range of risk management services offered by Finezza can be highly beneficial for banks and NBFCs in providing a complete, quick and error-free lending solution to its customers.