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This credible robust infrastructure has paved the way for financialinstitutions, including the NBFCs, to reach areas that were earlier dismissed as “unserviceable.” Technology can help with automating the processes for loan application, underwriting and closing the loan at speed without having to hire more staff.
Identity Checks: Rigorous identity verification ensures the business’s legitimacy and minimizes fraud risks. Underwriting: Assess the business’s financial stability, creditworthiness, and risk profile. Some PSPs provide additional services like fraud detection, riskmanagement, and reporting.
Financialinstitutions ensure that all client transactions and records are handled with strict confidentiality, protecting clients’ personal and financial information. It also offers investment banking services such as equity underwriting, mergers and acquisitions, debt restructuring, and capital raising.
RiskManagement and Credit Scoring AI analyses various data points, including transaction history, spending patterns, and social behaviour, to generate accurate credit scores and perform risk assessments. This helps financialinstitutions decide whether they should approve funding to a particular applicant or not.
They help financialinstitutions, payment processors , and card issuers understand the nature of a merchant’s business activities. This categorisation enables smooth transaction processing, accurate reporting, and effective riskmanagement.
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