What Makes Perfios Financial Statement Analyzer the Ideal Tool for Elevating Credit Decisions?

20th October 2021

Today we are at an intersection where agility and resilience are the core ethos of success for organizations across industries. Business decisions need to be precise, transparent, accurate, and adaptable, and data is the oil that will keep businesses ahead of the curve of disruption. Businesses can keep up with these changing ecosystems and new standards by harnessing and unlocking the infinite potential stored in their financial data for actionable insights.  

For years, valuable institutional bandwidth has been lost in the tedious compiling, cleaning, and dissection of financial data to deliver actionable insights . Tools driven by automation, analytical tools, machine learning (ML) or deep learning (DL), when run in unison with the sheer volume of generated data, can improve data quality and optimize planning processes. In the financial services sector, with technology intertwined with every aspect of the business, CFOs are increasingly asked to reconsider using technology to optimize their finance operations. The demands are constantly edging organizations to adapt and transform to tap their undiscovered potential. For the lenders, these dynamics have created the need for tailored solutions to increase efficiency and accuracy in credit decision-making.

Financial Statements Analysis (FSA) for Business-Critical Decisions

High-quality financial data is central to assessing the creditworthiness of a prospective borrower. However, today, underwriting teams are hard-pressed to assess and analyze an applicant's financial position to propel critical business decisions. Decision-makers increasingly rely on insights from financial statements regularly to gain better business visibility and meet the external reporting requirements.

While financial reporting is an obvious requirement for substantiating the business, its multi-dimensional analysis is imperative to enable business to launch innovative products and services, help improve efficiencies, reduce costs and boost productivity, thereby driving growth and success in today's data-driven economy . Accurate and timely Financial Statement analysis (FSA) reflects the company's performance and mirrors the plan to help the business grow, innovate, and compete in closely contested markets.       

Challenges in Unlocking the Value from Financial Statements Analysis

As most companies report their financials in unstructured formats of scanned images, irregular formats, and non-digitized templates, currently, there is an appalling lack of standardization of inputs. It significantly impacts the process of data collection and analysis, thereby leading to suboptimal credit decision-making outcomes.

Despite the availability of high-end technology in the financial services sector, the traditional reliance on manual reporting and analyzing financial statements outweighs the overall credit approval process. It includes fragmented workflows, sunken costs, inaccurate analysis and forecasting, disconnected systems and processes, and augmented compliance risks.

In respite, automating Financial Statement Analysis can significantly diminish errors prone to human intervention and streamline the decision making. 

Curving the Path of Success – The Perfios Way 

Gartner recently predicted that by 2024, organizations could reduce operational costs by 30% by combining hyper-automation technologies with redesigned operational processes. In context, an average employee loses 60 hours per month to iterative task loads. Thus, by deploying a digital workforce and automating these repetitive tasks, employees can gain back a quarter of their annual work time and focus on more meaningful work, boosting productivity and overall business value. 

Understanding the opportunities of automation and learning, especially in credit decision making, Perfios has attempted to unify human and machine acumen into a future-ready tool: Financial Statement Analyzer (FSA).

The Perfios Financial Statement Analyzer (FSA) is a unique utility that automates the collection, analysis, and fabrication of financial statements and generates a report in a tailored format, as per the Credit Assessment Memo (CAM) policies of the organization.

The Perfios platform exploits the company's proprietary algorithms, Machine Learning, and OCR capabilities to construe and categorize all line items in the form of spreadsheets from the financial statement. A comprehensive analysis of an applicant's financial position data points, including assets, liabilities, cash flow, and working capital, is conducted, defining the prospect's creditworthiness as per the lender's policies.

Deep Actionable Insights

The Perfios Financial Statement Analyzer running on disruptive automation follows a simple process of Extraction, Curation, Analysis, and Reporting. The absence of manual interventions combined with a series of validation checks and the advanced Amount Balance Mismatch feature that intuitively locates the balance mismatches, liability mismatch, and PAT mismatches guarantees a high-quality output. 

These ubiquitous actionable insights enable businesses to be future-ready by identifying complexity and tapping where problems are most likely to arise. Such operational and strategic decision-making builds up resilience and refines business for uncertain times.

The Salient Competitive Edge of Agility

Many CEOs today are turning to on-demand reporting and planning cycles to enhance business agility and responsiveness. While the Perfios Financial Statement Analyzer augments accuracy, comprehension, transparency, and scalability through unmatched automation, it adds new agility dimensions to the lending process. 

The Perfios Financial Statement Analyzer is designed to deliver at the speed of business, discounting the engagement of the manual resources. It diminishes a great deal of friction from the entire process and produces results faster without sacrificing accuracy.

The platform has a brief turnaround time with OCR usage and also attaches a unique Machine Learning component. While automation bottles down the time consumption, streamlines the processes and reduces data processing and analysis delays, the Machine Learning engine further fast-tracks the report creation. It enables the platform to intuitively learn from past actions and execute automatically, thereby minimizing the repetitions, with consistent output as per the defined policies.  

Conclusion

The traditional analyses in many organizations require significant turnaround time on generating reports, are historical-focused, and cannot deliver predictive insights. However, the evolution of highly automated and advanced models of Financial Statement Analyses are revolutionizing the business landscape and propelling organizations to gain sustained advantages. Financial Statement Analyzers are transforming lending operations. They act as the one-stop solution for the lending business to achieve desired outcomes by integrating human ingenuity and technology innovation.

safe and secure

Perfios is Information Security Management Certified (ISO 27001) Perfios is Security Certified for Applications (Plynt) Security Seals Certified Seal Privacy Seals Business Seals