Introduction
Financial experts agree that AI will revolutionize financial planning and decision-making in 2023. According to the economic survey 2022-23 conducted by the Government of India, there’s an 87% increase in the adoption rate of fintech products by consumers in India and it beats the global average by 23%.
AI-powered software can analyze vast amounts of financial data and create personalized financial strategies based on a company’s preferences and risk tolerance. Although AI can solve various problems, companies, individuals, and regulatory bodies, everybody is seeking faster and more efficient methods to analyze credit profiles to reduce fraud and automate credit approvals allowing technology-enabled credit decisions.
Automation Redefining Credit Decisioning
The credit decision is a process of approval/declining of a requested credit loan. However, conventional loan processing requires both applicant and approver to navigate through a lot of documentation, which results in long approval or denial of credit. Even if the loan process has a digital front, it takes a lot of time in manual processes and data collection at the time of credit evaluation.
The future of credit-decisioning is based on accurate credit analysis with data-backed decision-making to evaluate a loan applicant. However, it is difficult to access company data that is new in the market or has traditionally been in the industry for some time.
This is where automated credit decision-making comes to play. The AI-powered engines can easily aggregate data from public and private data sources and analyze the creditworthiness of customers in seconds without any errors, eliminating the manual labour-intensive decision-making process. 
Automated credit decisioning can leverage a combination of internal and external data sources to improve the accuracy of credit signals. This includes public, private, and consent-based data that can be complemented with subjective insights from credit underwriters. These data can be benchmarked against the industry standards and any change in data can be red-flagged, identifying specific variables from various data sources to derive credit signals. Based on these signals, banks, and financial services can easily depict the creditworthiness and risk associated with an account.
All this can be done in hours, not days saving a lot of time, effort, money, and resources
Technology Empowering Underserved Businesses
Technology is breaking down barriers for underserved businesses when it comes to credit decisions. Even today, these businesses face significant challenges due to limited financial records and lack of collateral. However, technology has introduced alternative credit assessment methods that consider non-traditional data sources and consent-based data sources to assess creditworthiness. This shift allows underserved businesses to showcase their potential and access credit based on their actual performance rather than relying solely on traditional metrics.
Underserved businesses can now access a broader range of lenders, including those who understand their specific needs and are willing to take calculated risks. This democratization of lending opportunities has opened new doors for underserved businesses to secure the capital they need to expand their operations and achieve their full potential. 
On the other hand, lenders can leverage AI technology to analyze vast amounts of borrower data, including credit history, financial statements, and other relevant information. This enables lenders to make informed decisions based on accurate risk assessments, leading to more personalized loan offers tailored to the borrower’s unique circumstances.
Crediwatch can provide more visibility to small businesses
Crediwatch empowers lenders to perform comprehensive credit assessments. By leveraging its advanced technology and data analytics capabilities, Crediwatch gathers extensive information about a borrower’s company profile from various sources, including financial statements, public records, and news sources. This wealth of data allows Crediwatch to generate in-depth insights and analysis regarding a small business’s financial health, operational performance, and creditworthiness and lenders can offer appropriate loan options tailored to the company’s specific needs.
For small businesses, Crediwatch offers increased visibility by presenting a holistic view of their company’s financial standing. By accessing Crediwatch’s platform, small businesses gain valuable insights into their financial health and can proactively identify areas for improvement. They can track their company’s alternate score, monitor any adverse news or events, and ensure the accuracy of their company’s public records. This visibility enables small businesses to take necessary measures to strengthen their financial position and improve their creditworthiness, thereby increasing their chances of accessing better credit options and favourable terms from lenders.
Introducing Crediwatch TSR & ECR: Driving smarter credit decisions
Crediwatch offers two powerful tools to enhance credit assessment and provide deep insights into the creditworthiness of businesses. Crediwatch’s Trust Score Report (TSR) leverages existing public data sources and upcoming infrastructure like Account Aggregators and open finance platforms. By using this AI-powered model, banks, NBFCs, and fintech companies can make faster, more accurate loan decisions for digital lending use cases. Large corporations use the Trust Score to assess the risk of unrated businesses and distributors.
In addition to the Trust Score, Crediwatch offers the Enhanced Credit Report (ECR), a comprehensive credit risk report powered by machine learning models. The ECR utilizes the latest data from authenticated sources in near real-time, providing a deep understanding of a business’s financial health. Using over 45 parameters, the ECR provides accurate risk analysis. A complete financial landscape of borrowers is painted by the ECR with the use of private, public, and consent-based data, allowing lenders to make informed credit decisions.
Crediwatch reports are revolutionizing credit risk assessment and helping businesses mitigate financial risks using:
- Comprehensive Credit Insights – Crediwatch’s Enhanced Credit Reports provide businesses with in-depth and comprehensive insights into their potential partners, suppliers, or customers. The reports go beyond traditional credit scores, offering a holistic view of a company’s financial health, industry trends, payment behaviours with GST trends, and more. This enables businesses to make data-driven decisions while minimizing credit risks.
- AI-driven Risk Assessment – Crediwatch leverages cutting-edge AI/ML algorithms to analyze vast amounts of data and generate accurate risk assessments. This advanced technology enables businesses to identify business-related risks, predict potential defaults or bankruptcies, and mitigate financial losses.
- Ease of Use and Accessibility – Crediwatch’s comprehensive report makes accessing and interpreting credit reports hassle-free. It provides businesses with a clear overview of credit risk metrics, and actionable insights. With easy-to-understand reports, businesses can save time, streamline their credit assessment processes, and make more informed credit decisions.
