Reduce Credit Risk
Digital Bank Statement Analysis is the Credit Management Tool of the Future, available NOW!
Interested in exploring Bank Statement Analysis?
Already registered with Norton BSA?
Why Norton BSA?
The value of analysing bank statements
A bank statement is one of the cornerstones of assessing a business’ creditworthiness: it is the most accurate record of its recent income and expenses.
Financial statements, especially of SMEs, often contain outdated or inaccurate information.
Signed financial statements are often outdated, sometimes even after 6 months, and do not provide an indication of how the business is performing at the moment. Bank statements, on the other hand, provide up-to-date financial information regarding the business that the credit analyst can rely on.
Problems with manual analysis
Analysing bank statements manually is tedious, error-prone and takes up a lot of time which could be used more productively.
- The transactions on bank statements are arranged in chronological order. This has little relevance for credit analysts.
- The more data reflected in a bank statement, the higher the possibility that important or irregular transactions can be missed during a manual analysis.
- Banks don’t use consistent formats and layouts – bank statements differ from one bank to another.
- Within the same bank, several different formats and layouts may be used by different business units.
Few people possess the attention to detail and accuracy required to analyse bank statements without digital assistance.
Even the most experienced and thorough analysts may miss the odd extraordinary transaction, outlier, anomaly, calculation error or formatting discrepancy.
Digital bank statement analysis highlights these important indicators to significantly reduce the possibility of human error.
Digital bank statement analysis
Digital bank statement analysis (“BSA”) software reads and converts the data to a standard format, interprets it and highlights important transactions, outliers, anomalies and actionable indicators or “red flags”, with a degree of accuracy which is not possible for most humans.
BSA creates a number of valuable reports for the credit assessor. These provide critical financial information about the applicant/borrower’s cash flow management and meaningful insights on pertinent issues. This supports credit assessments with the most accurate and current financial information.
Potential fraudulent and irregular transactions are also brought to the attention of the credit analyst for further investigation.
BSA can be used for the initial screening as well as the ongoing assessment of a borrower.
Less human effort increases turnaround time, reduces costs and improves credit risk assessment. It is a low-cost and reliable tool for banks, alternative lenders and fintech companies.
Based on the lender’s criteria, algorithms can be developed to automate, or semi-automate, the decision-making process.
