Perfios's Current Offering - Where Did the Need For Automated Payslip Processing Stem From?

5th April 2022

Back in the day, Perfios was the first to introduce a cloud-hosted, completely automated finance management solution in the Indian market. We then followed it up by building our data platform, capable of generating customized reports using our home-brewed ML techniques. Today, we are a solutions provider of 75+ products specially designed for the BFSI sector in 18 countries globally. While the fourteen-year journey looks like a dream today, trust us when we say it has been anything but so.

Most of our clients believe our Bank Statement Analyzer has been our most famous and revered product, and the response we received for the flagship product made us develop its cousin, the Payslip Analyzer. Read on to know the thought process behind its development.

The backdrop

Payslips are an integral part of credit processing, especially small-ticket loans. Most retail borrowers base their credit requests on it. As a result, financial lenders have to carefully analyze a handful of them every day as part of their lending endeavor. But on most days, they won't come across the same format for payslips twice, making the analyzing part all the more difficult.

With payslip digitization coming into the picture, lenders receive scanned or digital copies of salary slips. They use them for manually feeding data into their loan origination system. The process is tedious and time-consuming, which can be detrimental for the organization, especially during peak seasons.

Add to that, there are barely any ways through which they can tell that the ones they receive have been tampered with. So, unless you have your eyes wide open, you could be entering a massive loophole where you end up advancing credit to a deceitful application. The Payslip Analyzer has been built to prevent just that and more.   

How did the Bank Analyzer propel us to build the Payslip Analyzer?

The Bank Analyzer has been one of Perfios’ best products for a long time now. Its ability to provide a comprehensive view of the applicant’s financial health and complete digitization of bank statements has made it very popular in the retail lending space.

With Bank Analyzer, we automated the entire financial checks process usually associated with the bank statement verification during the loan application processing phase. It uses ML algorithms to determine the income of a loan applicant. It can also churn out customizable reports for our customers.

The feedback we received for the Bank Analyzer solution led us to navigate into the more niche but more critical payslip analysis process. We realized that retail borrowers had to wait longer because payslip analysis took days, and it was a major bottleneck that prevented faster loan processing.

Introducing our Payslip Analyzer

When we began the development of this product, we had the end goal clear – to facilitate real-time payslip processing for the lenders. The process that traditionally took days has been reduced to near-real-time today with our Payslip Analyzer. We are en route to achieving the goal of real-time processing that we had envisaged in the beginning.

In the current scenario, most of the retail lenders use data from salary slips to process small ticket loans. However, given that the processing was manual, the process was inherently flawed and led to errors in judgement, and thereby had catastrophic results to showcase.

Like our Bank Analyzer, the Payslip Analyzer can extract critical data fields from a payslip. Not only that, it also uses ML and AI to decode vital data points irrespective of the salary slip format, which helps in faster turnaround times for small-ticket loans.

In addition, we have also inculcated an FCU (fraud check unit) directly into the algorithm. Its primary aim is to help the lender understand if the payslips submitted have been tampered with. For this, we have a vast library of behaviour fraud triggers to point potential misalignment of data presented. It also uses several AI-driven cross-checks to ensure that the data presented is unadulterated and can be used for decision making. As a result, it can not only save hours of verification processes but can also churn out accurate results that are more dependable in most cases.

So, where did the idea of automated payslip processing brew from?

The idea brewed from us realizing that there is a massive gap in the loan processing space, which increases the turnaround time and exposes the lenders to unwarranted credit risk. We thought of developing a solution that could cater to both removing the bottleneck and strengthening the verification process. The Payslip Analyzer is that answer… and, of course, more.    

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