The bank statement analysis goes deep into the bank's statements and draws data from a PDF statement to obtain meaningful information about a borrower's recurring transactions, loans and defaults (if any), income and its frequency, and repayment capacity.
Flow-based lending takes into account the recent transactional behavior of an individual or business to assess their payment potential. What better way to assess the behavior of recent transactions than in a bank statement, which is all the credits and debits of a person or business.
Let us see how bank statement analysis can prove to be a viable option for all:
The content of a bank statement is neither consistent nor consistent with banks. They are non-standard concise and full of details and each bank has its own format of furnishing the details. File sharing and file formats are Iceberg's tips, however when it comes to tackling the challenges of online bank statement analysis.
In today's time, private sector banks entirely depend on bank statement analysis which is mostly offline, making employees work easier who transfer the disorganized data in PDF statement to an excel spreadsheet. This PDF to conversion is prone to errors and delays because copying data from pdfs is never easy. Copying tabular data from PDF, in particular, is cumbersome because the tabular structure of the data loses its fidelity when copying, and looks like plain text. The level of sensitivity and accuracy of the data needs to do so for statements of hundreds of pages several times in a matter of a few seconds.
Fintech companies are huge hurdles in this space and have come up with state-of-the-art technology products for bank statement analysis. Private sector banks are collaborating with them to resolve the issue of unbanked financial inclusion. Scoreme Solutions offers an online bank statement analyser tool that instantly analyzes hundreds of pages of bank statements, facilitating faster decision making at a very affordable price.
