A bank statement is the closest thing a lender has to the borrower’s real cash flow. Reading it by hand, in a spreadsheet, takes most of an analyst’s day.
Bank statement analysis turns months of transactions into a picture of the borrower’s cash flow: how much comes in, from whom, how much goes out, what balances they keep and whether payments bounce.
| Signal | Why it matters |
|---|---|
| Monthly credits and debits | Observed turnover, to compare with declared income and GST |
| Average and minimum balances | Liquidity the borrower keeps through the month |
| Inward and outward bounces | Stress, or customers who do not pay |
| Existing EMIs and loan credits | Obligations that may not all be on the bureau report |
| Concentration of credits | Dependence on one customer or one source |
| Cash deposits and round-tripping | Credits that inflate turnover without real business |
| Transfers between own accounts | Should be removed before counting turnover |
The results feed the repayment-capacity and banking sections of the credit appraisal memo.
AutoCredit is built for lenders’ credit and operations teams. Bank statements, GST returns, ITRs and KYC are collected on WhatsApp or a portal; bureau and account-aggregator data is pulled where consent allows. Banking, obligations, FOIR and GST trends are computed the same way for every analyst. The file is placed in your policy bands with deviations flagged, and a credit memo is drafted with every line cited to the document it came from. Field agents file a checklist, photos and GPS from their phone the same day, and the memo updates when the report lands. Credit officers and the committee decide; nothing is sanctioned by a model. The sanction is written to your LOS or LMS through the APIs you open.
Turning months of a borrower’s bank transactions into cash-flow measures such as monthly credits, balances, bounces, existing EMIs and concentration, to judge repayment capacity.
Monthly inflows and outflows, average balances, bounces, existing EMIs, concentration of credits, unusual cash deposits and transfers between the borrower’s own accounts.
To see whether observed turnover in the bank matches declared turnover; large gaps are something to explain in the memo.
See it on your own data. AutoCredit — The credit memo, drafted and cited. Book a 30-minute working session with an engineer.
