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Analytic thinker who passionate about number and date. Master in finance that enabled me to think strategically and use date analytics.

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5 reasons why data analysis important for small business lenders

An accurate and real-time financial data has numerous benefits to the banking and finance sector. However, it’s also an indisputable fact th

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Benefits of predictive analytics for small business lenders

Using historical and present data, today lenders forecast the future financial health of borrowers. FinTechs, with the help of AI, ML, advan

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Benefits of predictive analytics for small business lenders

Using historical and present data, today lenders forecast the future financial health of borrowers. FinTechs, with the help of AI, ML, advan

Using historical and present data, today lenders forecast the future financial health of borrowers.

FinTechs, with the help of AI, ML, advanced analytics, and predictive modeling, provides lenders the most robust, accurate, and real-time financial data. Lenders can access this data through APIs to determine creditworthiness and make informed lending decisions.

Benefits of Predictive Analysis for Small Business Lenders

● Gain a deeper understanding of borrowers

● Meet customer expectations

● Reduce Credit Risk

● Make data-informed decisions

● Gain a competitive advantage

Gain a deeper understanding of borrowers

Predictive analytics helps lenders to accurately predict the financial future of a business and gain a deeper understanding of their borrowers. It goes beyond describing consumer behavior to predicting how consumers will behave in the future based on data.

Meet Customer Expectations

More forward-looking data enables lenders to identify and meet customers’ needs and improve customer experience by providing customization products and services. It helps them choose the right product for the right customer at the right time.

Reduce Credit Risk

Simply, provides the most real-time cash flow predive data that indicates lenders that a business will be able to pay back the borrowed amount, so there’s no risk in providing capital, and vice-versa.

Make data-informed decisions

predictive analytics helps lenders visualize where a business is standing in terms of financing, how well it’s managing existing repayments, and how much new financing it can afford. Eventually, it helps in better lending decisions.

Gain a competitive advantage

Predictive analytics helps lenders better determine creditworthiness, streamline processes, improve customer experience, offer fast and easy funding, and meet customer expectations. All these benefits later help lenders to gain a competitive advantage and become a trusted financial expert.

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For a small business lender, having accurate and real-time cash flow data of their customers is essential for success. After all, poor cash flow is one of the biggest reasons why most lenders will not lend money to small businesses. Accurate cash flow analytics is key to understanding, evaluating, and planning for a small business’s future financial health.

● Data Collection and Transport

Collecting quality cash flow data and transporting it to lenders easily and instantly is the foundation of strong cash flow analytics. API-based applications streamline the business’ workflows by automating the collection and normalization of cash flow data. APIs help FinTech firms to collect cash flow data from multiple categories, including operations, investing, and financing.

● Data Quality

Large financial data sets such as accounting, banking, financial, and cash flow predictive data, have large data quality issues. With the help of AI-based analytics solutions and algorithms, financial technology companies today can easily address data integrity issues when processing cash flow data, approving consistency, accuracy, and integrity to levels previously considered out of reach.

● Data Analysis

By leveraging AI and ML technology, APIs can analyze, standardize and visualize a business’ cash flow data with almost no need for human input. And with easy-to-understand cash flow predictive data, lenders will be able to better understand their customers’ unique financial needs and provide best-personalized solutions, increasing sales and profitability, and drive smarter decision-making.

Reference: https://www.forwardai.com/

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Top FinTech Trends that You Must Know About

FinTech is one of the fastest-growing industries, with companies innovating in almost every area of finance; from data and loans to…

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1. Today’s consumers are bombarded with options. They have more choice than ever before and less patience. They are on the move, expect digital access to their financial affairs, and demand high-quality services immediately.

2. Such demands for immediate decisions have increased pressure on financial institutions, especially when making decisions about which customer should be offered which loan and at what price.

3. A futuristic financial data API solution can help banks and financial institutions gain a competitive edge by making data-driven decisions seamlessly throughout the lending process.

4. By using advanced analytics, ML, and AI-based systems, these financial data APIs help lenders to access, analyze and use the most robust and real-time financial data of their customers. These APIs help lenders transform raw data into meaningful, easy-to-understand, and actionable insights so they can better understand customer’s needs and provide customized solutions.

5. Benefits of financial data APIs for lenders

1) Targeting the right set of customers improves the profitability of a financial institution by reducing the probability of customers turning delinquent.

2) Faster and hassle underwriting process by getting the most accurate and relevant data of their borrowers

3) Retain profitable customers by offering the relevant products and services at the right time

4) Reduce collection costs and increase customer satisfaction by offering easy and fast funding

5) Reduce credit risk, determine creditworthiness and make better lending decisions by creating new and innovative data credit systems.

6. Try ForwardAI’s lender-first financial data API today. It’s a comprehensive 3-in-1 platform for faster, better decisions. We offer a financial data API and a white-label portal for small business lenders and a free cash flow forecasting and management portal for small businesses and accountants. Our futuristic data solutions help both lenders and small business owners to take their organizations to the next level.

Reference: https://www.forwardai.com/precise

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Real-Time Financial Data - Why it Matters to Small Business Lenders

Real-Time Financial Data - Why it Matters to Small Business Lenders Small business lenders have a vital balancing act - they must acquire ne

Small business lenders have a vital balancing act - they must acquire new and retain existing customers to boost revenue and profit while managing risk and determining creditworthiness to make informed lending decisions.

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Working capital: It is the funds required to manage day-to-day operational activities. Working capital management process: It is the process of managing short-term assets such as cash receivables, inventory, or marketable securities. Working capital operating cycle: It is the duration in which raw material, finished goods, work in progress, debtors get converted into cash. The four key components of working capital management are: - Cash Management - Inventory control - Account receivables - Account Payables Methods to improve working capital Select appropriate KPIs to measure: The vital parameters for working capital management are; debt to equity ratio, operating cashflows, outstanding days payable (DPO) to monitor the success of accounts payable, accounts receivable turnover ( DSO), and outstanding inventory days ( DIO) to control inventory turnover. Minimize inventory and improve turnover ratio: Avoid stockpiling, holding less of slow-moving inventory, and rising the turnaround period of inventory can help in achieving high working capital. - Inventory management and evaluating inventory performance metrics are ways to optimize inventory. Also, methods like, JIT strategies, lean inventory manufacturing avoids stockpile ups. - Ratios, such as days inventory turnover (DIO) helps in determining the average number of days a firm holds its stock. This ratio provides a better understanding of inventory turnover. Moving to electronic payables and receivables: Replacing manual activities with automation is another way of optimizing the working capital process. This can help in reducing errors, provide reminders for payment to collect/pay, risk of loss of invoices can be mitigated. With the help of financial API, the turnaround process of payments gets minimized as day-to-day transactions notification can help BFSI in ranking the priority of making/collecting payments. Reference: ForwardAI

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● Today digitization has transformed lending decisions in many different ways. Today customers are expecting quick and timely decisions so they can know whether their loan will approve or not. ● A financial data API helps lenders to make sure to use that data to make lending decisions as quickly as possible. We live in a world where people want decisions quickly. As a lender, you need to do the same. ● Data Challenges With Data: ❖ Data Quality - The quality of data is one of the most important aspects to make informed lending decisions, so lenders must ensure data integrity once it is accessed ❖ Data Standardization- Properly analyzing sets of a business’ information provides insights that help lenders make intelligent lending decisions and reduce the risk. Lenders must know how to use this data insight as well as develop a strategy to standardize full data sets. ❖ Data Availability - Finally, the data must be available at the right time so lenders can easily make decisions. They can use financial data APIs to get a real-time picture of a business's future financial health at decision-making time. Source: ForwardAI.https://www.forwardai.com/

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Who Can Use Financial Data APIs

Lenders By getting more real, accurate, and futuristic information of a borrower, lenders can have a greater edge over the competition. Financial data APIs provide information to lenders they need to check the creditworthiness of their borrowers and make intelligent lending decisions than other lenders. Financial Planners and Analysts Financial planners and analysts can also use financial data APIs to turn unstructured data from different platforms into structured financial statements for their customers. They can be confident they are providing best-interest advice by making recommendations based on real-time information. Auditors Financial data API can help them to get a clear view of the future financial health of a business. It has the potential to transform external auditing and could make it possible for external auditors to improve auditing by accessing historical, present, and real-time data. Investors Investors can also leverage a forward-looking data API to collect rich financial data on their portfolio companies and analyze it to gauge their portfolio performance. APIs help investors to accurately calculate the value of a company and decide whether this business is suitable for investing or not. Reference: https://www.forwardai.com/

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● Digitization is reshaping customer’s expectations in the small business industry. Borrowers want a smooth, hassle-free experience when purchasing a business loan. This includes ○ Low-interest rates ○ Minimal documentations ○ Same-day or Instant Approval ○ As few touchpoints as possible ● Today, most small businesses prefer to buy from lenders that provide a preferred buying experience, even if they have high interest rates. ● Yet in this new reality, most lenders continue to face traditional challenges that could easily be solved with intelligent credit scoring methods using a futuristic financial data API. ● You can solve problems like: ○ Outdated and manual loan origination processes ○ Traditional credit scoring methods ○ Inaccurate borrower evaluations ○ Unscalable business lending programs ○ Irrelevant loan products and services ● It helps solve all these problems by providing you the most robust and real-time data of your potential small business borrowers. ● It is the provider of a lender-first API technology to access and analyze the most valuable forward-looking data of your borrowers. ● It helps you see a deep critical insight into borrowers' financial health and accurately predict their financial future. It allows lenders to: ○ Integrate with all of the major accounting software systems ○ Get real-time cash flow forecasting supported by numerous data attributes ○ Normalize accounting and financial data ○ Make small business lending complicated and less risky ● It enables higher ROI on every business loan. AI and ML-driven data analysis to transform raw data into meaningful insights help lenders to better understand their clients, offer customized solutions, reduce credit risk, determine creditworthiness and boost profit. ● Little to human involvement in loan origination and credit decisioning with no compromise in quality. ● The functionality inside for small business lenders would otherwise require integrating separate software tools to collect and analyze different types of financial data. ● It is an intelligent system that helps you in streamlining loan origination, borrowers’ evaluation, mitigating risk, preventing fraud, enhancing customer experience, and making data-informed lending decisions. ● Applying old-school credit scoring methods and using out-of-date data where new market conditions prevail could restrict lending and hinder economic growth. Lenders who adopt new financial technology to serve their customers better, reduce credit bias, and make loans fairer will succeed in the marketplace. ● Get a personalized demo today and make more money providing fast and easy loans tomorrow. Reference: ForwardAI

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Who Can Use Financial Data APIs?

Lenders

By getting more real, accurate, and futuristic information of a borrower, lenders can have a greater edge over the competition. Financial data APIs provide information to lenders they need to check the creditworthiness of their borrowers and make intelligent lending decisions than other lenders.

Financial Planners and Analysts

Financial planners and analysts can also use financial data APIs to turn unstructured data from different platforms into structured financial statements for their customers. They can be confident they are providing best-interest advice by making recommendations based on real-time information.

Auditors

Financial data API can help them to get a clear view of the future financial health of a business. It has the potential to transform external auditing and could make it possible for external auditors to improve auditing by accessing historical, present, and real-time data.

Investors

Investors can also leverage a forward-looking data API to collect rich financial data on their portfolio companies and analyze it to gauge their portfolio performance. APIs help investors to accurately calculate the value of a company and decide whether this business is suitable for investing or not.

Reference: ForwardAI

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How Data and Financial Technologies are Transforming Digital Lending

In this digital lending market, the ability to apply for business loans online has increased. But the financial institutions aren't keeping up with consumer expectations or fintech capabilities. Most of the banks, credit unions, and alternative lenders use digital methods to provide loans online, even though the pandemic significantly increased demand for digital service. It becomes more important than ever for financial institutions to make their digital lending processes easier, quicker, and more hassle-free.

Digital lending does not only mean that a borrower can apply for a business loan on a laptop or mobile. But it means the borrower can seamlessly complete the entire process digitally, from applying to approving, without visiting a physical facility. As a lender, If a potential borrower struggles to apply and get a loan quickly from your lending platform, you’re simply faking digital.

Today, consumer behavior has been changed due to innovations in the lending and banking sector. And this change has increased exponentially due to the coronavirus outbreak. From applying for loans online to conducting entire KYC processes on the video call, there have been rapid technological changes for the past few years.

When a business loan can be applied with just a few clicks online from a mobile or laptop or a new current account can be opened without a visit to a bank, the entire industry takes notice.

Data and Advanced Technologies For Digital Lending Success:

When borrowers’ most accurate and real-time data and advanced technology are combined with revised processes and innovative products, digital lending can be much more inclusive. Instead of providing loans to most credit-worthy customers or large businesses using historical data and traditional credit scoring methods, digital lending can now leverage include borrowers with no or limited credit history as well as create and offer new credit solutions altogether.

Data, AI and ML-based tools, advanced analytics, and automation allow lenders to determine the ability and willingness of a borrower to repay loan obligations. Utilizing data and analytics, lenders can see deep insights into a borrowers’ past, present, and future financial health.

Today, some FinTechs firms are creating ground-breaking financial data APIs for lenders using AI and ML. These APIs allow lenders to access and analyze the most accurate, real-time, and efficient data, so they can better understand their borrowers’ needs and offer customized loan products and services. Also, lenders can use this data for streamlining the loan application process, mitigating credit risk, preventing fraud, borrowers' evaluations, and better credit decisions.

Data and API Leads to Better Customer Experience:

To become a financial expert of the future and gain competitive advantages, digital lenders will need to make their lending capabilities more easy, quick, and smooth for borrowers by improved customer experience. The key will be to reduce the time it takes to complete the loan application process, provide borrowers a platform to find and compare loan products, offer customized loan products and services and design an application for the best user experience.

COVID-19 has forced financial institutions to adopt newer, innovative, and easy-to-use digital tools to identify and meet their borrowers’ unique financial needs. Besides, borrowers changed the way they transacted, communicated, and purchased loans online. This comfort level has increased the expectations of borrowers that need to be fulfilled. Leveraging financial data API to access and analyze the most valuable data can help lenders personalized solutions for each borrower at the time of need.

Besides, a financial data API provides lenders with forward-looking data that gives them valuable information about their customers, which can help develop customer retention strategies. Lenders can review and analyze their customers’ creditworthiness and ability to repay the loan amount based on their future incomes and expenses and numerous other forward-looking data points. When lenders have both historical and futuristic data of their customers, they can attract new and retain existing customers by providing them new and innovative solutions. Moreover, they can reduce loan bias and make credit scoring fairer.

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Top Financial Data Trends are Transforming Small Business Lending Industry in 2021

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● Digitization is reshaping customer’s expectations in the small business industry. Borrowers want a smooth, hassle-free experience when purchasing a business loan. This includes

○ Low-interest rates

○ Minimal documentations

○ Same-day or Instant Approval

○ As few touch points as possible

● Today, most small businesses prefer to buy from lenders that provide a preferred buying experience, even if they have high-interest rates.

● Yet in this new reality, most lenders continue to face traditional challenges that could easily be solved with intelligent credit scoring methods using a futuristic financial data API.

● You can solve problems like:

○ Outdated and manual loan origination processes

○ Traditional credit scoring methods

○ Inaccurate borrower evaluations

○ Unscalable business lending programs

○ Irrelevant loan products and services

● It helps solve all these problems by providing you the most robust and real-time data of your potential small business borrowers.

● It is the provider of a lender-first API technology to access and analyze the most valuable forward-looking data of your borrowers.

● It helps you see a deep critical insight into borrowers' financial health and accurately predict their financial future. It allows lenders to:

○ Integrate with all of the major accounting software systems

○ Get real-time cash flow forecasting supported by numerous data attributes

○ Normalize accounting and financial data

○ Make small business lending complicated and less risky

● It enables higher ROI on every business loan. AI and ML-driven data analysis to transform raw data into meaningful insights help lenders to better understand their clients, offer customized solutions, reduce credit risk, determine creditworthiness and boost profit.

● Little to human involvement in loan origination and credit decisioning with no compromise in quality.

● The functionality inside for small business lenders would otherwise require integrating separate software tools to collect and analyze different types of financial data.

● It is an intelligent system that helps you in streamlining loan origination, borrowers’ evaluation, mitigating risk, preventing fraud, enhancing customer experience, and making data-informed lending decisions.

● Applying old-school credit scoring methods and using out-of-date data where new market conditions prevail could restrict lending and hinder economic growth. Lenders who adopt new financial technology to serve their customers better, reduce credit bias, and make loans fairer will succeed in the marketplace.

● Get a personalized demo today and make more money providing fast and easy loans tomorrow.

Reference: ForwardAI

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Top 3 Technologies Banks Must Embrace to Survive and Stay Competitive

From transportation and communication to health and entertainment, technology has dramatically disrupted numerous industries and businesses