5 Credit Analytics Solutions for your Loan Business in Singapore
If you work in the credit sector, you’re presumably well aware of the numerous financial risks involved. Customers may be late with payments or, in the worst-case scenario, completely default on their obligations. In either case, delinquent customers can be a severe financial risk to your firm, which is why you should do a credit assessment on all potential borrowers.
What is Credit Analytics?
The study of credit data is known as credit data analytics. It is a means of assessing a company’s or organization’s creditworthiness or capacity to meet its financial obligations. When a customer applies for a line of credit, the business credit manager evaluates their creditworthiness.
In this piece, we’ll look at the credit analysis process, how it works, and how your company may implement it as quickly and efficiently as possible to protect its financial health.
Why is credit analytics important?
For banks, investors, and investment funds, credit analysis is critical. When a company wants to grow, it needs to find new means to fund its expansion. They can accomplish it by issuing bonds, stocks, or borrowing. When it comes to investing or lending money, the company’s credit plays a significant role in determining whether the investment will pay off. Lenders must decide whether or not they will be paid back in the event of bankruptcy, for example.
The Credit Analysis Process
The credit analysis process comprises a thorough study of a business to determine its ability to pay.
- Managers of business credit examine financial statements
2. Apply credit analysis ratios
3. To evaluate the data supplied in the credit application, check trade references.
4. Examine a company credit report from a trusted third party in addition to the information requested in the application.
Credit Analytics Solutions in Singapore
A complete credit analytics solution is necessary to protect your company’s financial health in Singapore. Still, it may be time-consuming and labour-intensive if done manually (without the aid of automated resources and tools).
Smaller firms with few clients may prefer to keep the credit analysis process manual, consuming anywhere from one day to several days to make a sound credit judgment.
Credit analysis is an essential part of risk management since it allows you to make informed lending decisions. While it’s impossible to eradicate risk, it depends on the data and management software you use to help you avoid bad debt and financial loss. Here are five credit analytics solutions in Singapore:
1. iRAP (intelligent Risk Analysis Platform)
It is a cutting-edge, comprehensive data and analytics platform that enables you to visualize, evaluate, and manage the credit risk of companies throughout the world in a quick, easy, and intuitive manner. The appraisal is based entirely on statistics to aid decision-making. It recognizes credit problems as soon as possible and keeps track of portfolio and entity credit changes to stay ahead of the curve. It helps understand the credit risk causes — the link to traditional credit measures with ease by implying S&P/equivalent Moody’s ratings.
2. FICO Credit Scoring Solution
It is a consistent, predictive risk score using alternative data to help lenders expand their customer base with more confidence. Lenders can now give credit to millions of Americans who would otherwise be unable to be adequately rated due to insufficient or obsolete data in standard credit agency files. It uses alternate data sources to give lenders a second chance to assess consumers who might otherwise be uncreditworthy. It was created with precision and compliance in mind, allowing lenders to provide credit to a largely untapped market responsibly.
3. Provenir Cloud Suite
Simplify data access and use throughout your company’s decision-making analytics. Provenir’s no-code technology puts data integration and orchestration tools in the hands of your business users. The visual interface makes it easier for risk, development, credit, and product teams to collaborate. Cross-team collaboration is a great way to boost innovation. It places the power of data in the hands of business users.
4. OneConnect’s Credit Scoring Solutions
Financial organizations can use the Credit Scoring Solution to make more accurate choices about the creditworthiness of loan applicants. It only takes a few minutes instead of days to finish the clearance procedure. Lenders currently approved credit facilities in minutes. They could grow their company faster while paying fewer costs of operation. Moreover, the Credit Scoring system is exceptionally adaptable and versatile. The solution uses state-of-the-art machine learning algorithms used in the solution that enables to react fast to market changes such as the COVID-19 pandemic.
5. Credit Risk Rating Platform
The Credit Risk Management Platform is a dependable and scalable credit risk management software. Banks, financial service providers, and enterprises utilize the platform to assess and manage credit risks. Capturing and disseminating financial statements, as well as a customizable framework for the installation of internal rating and scoring models, are among the platform’s key features.
Parting Note
Compliance and loss reduction are no longer the only concerns for risk. More innovative risk management allows you to make risk-aware decisions and meet regulatory compliance requirements. Risk intelligence gains leverage to uncover value and potential as the business evolves into a more strategic function. Therefore, choose the powerful credit analytics solution that focuses on proactively fostering trust and performance in the face of uncertainty while adhering to regulatory constraints.
