Credit underwriting software reduces MSME defaults by replacing static, backwards-looking credit inputs with current financial data, bank statements, Goods and Services Tax Network (GSTN) filings, and multi-bureau queries that reveal a borrower’s actual repayment capacity at the point of origination. Platforms like Finezza integrate these data sources into a single assessment workflow, applying consistent scoring […]
Hybrid Credit Underwriting: Blending Bureau Data with Cash Flow Projections
A CIBIL score of 780 looks excellent on paper. It tells you the borrower paid every EMI on time, kept utilisation below 35%, and never had a write-off. What it doesn’t tell you is that the borrower lost a major client eight months ago, has been drawing down savings to service existing obligations, and is […]
Alternative Credit Scoring in India: Financial Inclusion Guide
Financial inclusion has emerged as a significant opportunity for lenders in India. As of December 2024, World Bank data estimated that India’s credit-eligible population, comprising consumers aged 18 to 80, stood at approximately 1,036 million. However, only 27%, or approximately 277 million consumers, utilised formal credit facilities. Approximately 451 million Indians have limited or no […]
Behavioral Scoring: The Smart Approach to Line of Credit Risk Management
In 2022, around 160 million people in India were credit-underserved. One reason for this is the overreliance on traditional scoring models, which typically consider parameters such as payment history, debt-to-income ratio, and length of credit. However, traditional credit scoring models do not account for an individual’s lack of credit history or other important parameters, including […]
AI-Powered Credit Underwriting: The Four-Step Approach
The adoption of AI in the credit underwriting process is expected to be one of the most significant changes in the lending sector over the coming decade. The technology spend on AI systems in the lending sector, for instance, is expected to increase from $11.7 billion in 2021 to $27.7 billion in 2025. One of […]
From Data to Decisions: AI’s Role in Modern Credit Underwriting
Today, Artificial Intelligence (AI) plays a transformative role across various sectors. In financial services, a recent survey, for instance, indicated that 13% of banks are already leveraging AI in lending operations to boost efficiency and performance. Over 50% of the surveyed banks aim to invest $100,000 or more in machine learning-driven credit models over the […]