Use Case
A renowned Non-Banking Financial Company (NBFC) focused on providing crucial financial support to micro-entrepreneurs in rural India, specifically targeting smaller towns.
Committed to advancing financial inclusion, especially for individuals with limited income, minimal credit history, or collateral, this distinguished NBFC has expanded its reach through a network of 300 branches across ten states. With a steadfast mission, the company has successfully disbursed over a million loans, playing a pivotal role in empowering underserved communities.
Recognizing the evolving landscape, the renowned NBFC sought to enhance its services by integrating an intelligent AI system for bank statement and loan application analysis. This advanced system aims to streamline and bolster mortgage lending processing.
Decoding Bank Statements for Insights and to Hassle-free Loan Processing with RecoSense AI
Problem
One of the leading NBFC companies in India needs to automate the data extraction from documents, and customer verification, and speed up the mortgage loan processing with higher accuracy
Solution
RecoSense lending process automation solutioncan accurately extract data from banking statements, income proofs, and credit histories, and also takes care of compliance management. Therefore the NBFC company can significantly reduce the time required for evaluation and improve the process time.
Result
RecoSense lending process automation solutioncan accurately extract data from banking statements, income proofs, and credit histories, and also takes care of compliance management. Therefore the NBFC company can significantly reduce the time required for evaluation and improve the process time.
Faced with a high volume of loan requests, the NBFC encounters challenges like-
- Difficulty in Managing High Loan Request Volume: Coping with a significant influx of loan requests poses a bottleneck in processing mortgage loans efficiently.
- Tedious Bank Statement Analysis: Analyzing numerous bank statements for loan approval becomes time-consuming, slowing down the overall process.
- Loan Application Complexity: Handling diverse and intricate loan applications complicates the assessment and verification stages, leading to delays
The prominent NBFC needs an efficient AI automation system for bank statement analysis and loan application processing. The aim of the AI system is also to streamline procedures, enhance efficiency, and ensure faster, more accurate loan approvals for improved client satisfaction.
RecoSense AI automation solution for data extraction, data computation and customer verification uses cutting AI NLP and Machine Learning architecture to extract accurate information from various documents and process them with high accuracy and classification so that the NBFCs can easily avail the required information.
The solution seamlessly extracts data from complex documents, including those with intricate layouts, and contextual intricacies, and provides human-like data processing. Also, the system takes care of compliance management of the data extracted from various documents like Government IDs, Bank Statement, Loan applications, Pay Slips, Tax Statements, CIBIL Report etc.
RecoSense offers an efficient solution for automating the Know Your Customer (KYC) process by harnessing machine learning and AI algorithms. The AI system automates identity verification, document authentication, improved fraud detection, and risk assessment, speeding up the onboarding process for clients.
The system’s greater accuracy improves compliance while minimizing human errors which helps the NBFC company to swiftly verify customers while maintaining compliance with regulatory standards.
The platform categorizes essential details like Bank account details, and customer information. It further analyzes transactions to determine metrics such as average monthly amounts, EMI’s, instances of bounced checks, negative transactions, and the total credit and debit values.
The platform is designed to meet modern-day lender needs. For example, When a loan application comes in, basic details like name, demographics, address, employment, locations, etc. are extracted from the user’s detail form. Loan entities like cost, property type, plot details, area/size, purchase details, cost, market value, etc, will be extracted from the Proposed Loan Details form. Furthermore from the Salary/income details form, entities like bank details, salary, liabilities, property cost, plot cost, employment/business details, outstanding loans, credit card due, etc., will be extracted by the AI platform.
This rapid data retrieval capability streamlines the analysis process. Moreover, the system offers the feature to export these values into a table format or Excel, facilitating seamless data utilization. Its capacity for swift data extraction and user-friendly export functions enhances operational efficiency and accessibility, aiding in the streamlined processing of financial information.
The benefits are substantial, ranging from faster decision-making processes to improved accuracy in risk assessment. Automated analysis also minimizes errors, ensuring a more robust and consistent evaluation of loan applications. Furthermore, RecoSense platform enabled the prominent NBFC lender to handle higher volumes of loan requests, improving operational efficiency and ultimately enhancing the overall borrower experience through quicker and more accurate mortgage approvals.
RecoSense lending process automation solution delivers 97% accuracy and a 100% success rate, enhancing efficiency for a leading NBFC. Streamlined processes include:
Auto Document Validation
- Speeds up mortgage loan processing by 20%.
- Identifies anomalies and ensures information completeness with a 30% reduction in the risk of loan default.
Underwriting and Loan Pricing
- Improved underwriting efficiency by up to 25%
- Assesses credit risk against lending standards, reducing time and manual efforts by 20%.
Fraud Detection
- Reduction in fraud cases by up to 15%.
- The platform improves efficiency by 20% by minimizing manual errors.
Customer Service
- RecoSense AI solutions help the leading NBFC to achieve 20% more satisfied customers.
- Automated responses to queries enhance productivity by 30%.