IMPS vs NEFT vs RTGS: Everything You Need to Know

Over 40% of consumers now prefer online channels for financing major purchases, like cars. This shift points to a larger trend: younger generations, particularly Gen Z, are moving away from traditional bank visits in favor of digital-first solutions powered by Banking as a Service (BaaS).

This generation demands for advanced financial services that align with their tech-savvy lifestyles — enhanced identity and credit protection, robust data security, automated financial guidance. Traditional banking methods often fall short of these expectations, creating a gap that needs to be addressed.

In this context, BaaS bridges the gap. It seamlessly integrates banking and financial services in your day-to-day apps, changing the way we shop.

In this guide, we’ll explore how BaaS and embedded banking are revolutionizing the banking experience for businesses and end users alike.

BaaS, Explained

BaaS enables companies to integrate financial services traditionally offered by banks into their existing platforms. This integration allows Non-Financial Companies (NFCs) to offer banking functions like issuing cards and granting loans directly to their customers.

BaaS products include, but are not limited to:

• Card issuing
• Lending services
• Buy-now-pay-later financing
• Payment processing
• Direct financing options on merchant websites

BaaS providers collaborate with banks to offer services through banking APIs (Application Programming Interfaces — technology that allows different systems to essentially talk to each other).

These APIs allow end users to access banking services via the BaaS platform while still maintaining their relationship with their trusted bank.

The BaaS Value Chain

The BaaS ecosystem consists of four key components:

Configurations of BaaS

Historically, banks owned the entire value chain, from building products to distributing them through their channels (like branches). BaaS, however, focuses on 1-2 parts of this value chain. Based on this, companies can use four strategies to offer their products:

1. Providers: NFCs simply provide banking licenses and products.
2. Providers-Aggregators: NFCs integrate their services with BaaS providers to offer enhanced solutions.
3. Distributor-Aggregator: NFCs combine services from banks and BaaS providers to create unique products.
4. Distributor-only: NFCs distribute pre-built financial services tailored to their customer base.

Embedded Payments and Finance

When NFCs use the services of a BaaS provider, it’s called embedded finance.

This concept builds on ‘embedded payments’ — platforms providing services like payment gateways, wire transfers, and ACH access through a payments provider. The scope is limited to payments only.

A BaaS provider simply enables them to add even more financial services to their platform, boosting their unique selling proposition (USP).

The evolution from embedded payments to embedded finance represents significant growth in the capabilities of non-financial companies — from SaaS 2.0 to SaaS 3.0.

What BaaS is Not

It’s easy to confuse BaaS with open banking, platform banking, neobanking, and FinTechs. However, key differences set them apart.

BaaS vs. Open Banking

Open banking is a system where banks allow NFCs to access customers’ financial information (like transaction history) with customer consent. While both BaaS and open banking use banking APIs, they apply to different aspects of the financial ecosystem:

BaaS vs. Platform Banking

BaaS and platform banking are closely related since both use banking APIs, but there’s an important difference:

BaaS vs. Neobanks

BaaS serves as the foundational layer that powers other companies' financial services, while neobanks are the direct providers of banking services:

BaaS vs. FinTech

BaaS can be a facilitator for FinTechs, helping them deliver financial services without needing to become licensed banks:

How Does BaaS Work?

Let’s take an example of Buy Now, Pay Later (BNPL) offered by Amazon at the point of purchase to understand how BaaS works.

Recently, Amazon started offering BNPL options, which allow customers to purchase items and pay for them in installments over time, typically without interest if paid within a specific period.

To offer this service, Amazon integrated banking services directly into its checkout process. This allows customers to get instant approval for small loans at the point of purchase, without leaving the app or applying for a traditional credit card or loan.

By leveraging Banking as a Service, Amazon seamlessly provides these financial services. Customers can split their purchases into manageable payments, making larger items more affordable, without Amazon having to become a bank itself.

Behind the scenes, BaaS  connects Amazon’s platform to a partner bank’s services through APIs. When a customer selects BNPL, the BaaS infrastructure quickly performs credit checks, approves the loan, and sets up the payment schedule — all within seconds during checkout.

Common Use Cases for BaaS

BaaS creates diverse opportunities for businesses by streamlining financial operations, speeding up payments, and enhancing customer financing — all while improving the overall user experience. Here’s how Neokred’s Collectbot ensures this:

• Banking API Integration: Collectbot simplifies banking API integrations for different purposes with comprehensive documentation and support.
• Comprehensive Payment Solutions: Collectbot helps businesses accept payments across multiple channels (cards, net banking, UPI, wallets) without building their own banking infrastructure.
• Virtual Account Numbers (VAN): Businesses can create unique accounts for various functions — such as escrow services, merchant settlements, and KYC verification.
• Advanced Payout Systems: Collectbot handles complex operations like refunds, vendor payments, and reward disbursements, all while providing real-time reporting and analytics.

Plus, Collectbot offers tailored business solutions across different sectors:

• FinTech companies can leverage escrow accounts for P2P transactions
• E-commerce platforms can simplify marketplace seller payouts
• Subscription businesses can manage tiered subscriptions and prorated billing

Benefits of Banking as a Service

BaaS fosters collaboration between banks, NFCs, and customers, creating mutual benefits. 

BaaS’ Benefits for Banks

• New Revenue Streams: Banks earn revenue from API transactions and FinTech partnerships.

Cost-Savings: Outsourcing technology reduces development costs and operational expenses. 

• Enhanced Customer Insights: Collaboration with NFCs provides data on new customer groups, enabling personalized offers that boost sales as 80% of consumers are more likely to make a purchase when offered personalized experiences. 

BaaS’ Benefits for NFCs

• Faster Market Entry: NFCs bypass banking regulations by integrating with BaaS providers, launching financial products faster. 
• Increased Customer Trust: Leveraging a bank’s reputation enhances trust and also helps NFCs gain valuable customer insights.
• New Opportunities: NFCs can build new products by using various banking APIs, opening additional revenue streams.

BaaS’ Benefits for Customers

• Improved Experience: Customers enjoy embedded financial services within platforms they already use.
• Personalized Financial Solutions: Niche financial products designed for specific needs.
• More Options: Increased competition leads to a broader range of financial products.

The Rise of BaaS

BaaS is now a $7 trillion industry which has unsurprisingly reshaped financial services. Here are four primary factors driving the rise of BaaS:

Evolving Customer Demand

1. An increasing number of customers are seeking integrated, user-friendly financial services that cover their entire financial journey.
2. Plus, SMEs find their needs unmet by traditional banks and FinTechs are targeting this segment with tailored solutions.

FinTech Industry Growth

1. India’s FinTech adoption rate is 87% (compared to the global average of 64%). Thishigher adoption rate is fueling growth in this space.
2. BaaS allows FinTechs to enter the market quickly without having to meet the central bank’s stringent compliance requirements.

Regulatory Environment

1. Changes in the regulatory environment have also created a more favorable landscape for BaaS. Many jurisdictions now require banks to make their APIs public, encouraging competition and innovation.
2. Banks are also adapting to meet new regulatory requirements and ensure customer satisfaction.

Banking Industry Transformation

1. The industry itself is undergoing transformation thanks to shifts towards digital and mobile-first banking solutions.
2. Forecasts of declining banking revenue and profitability push banks to seek new income streams through BaaS partnerships.

Neokred and BaaS

As BaaS continues to evolve, it faces several challenges. Traditional banks must overhaul their technology and rethink their role in the financial ecosystem. Organizations also need to develop a well-defined API strategy that balances easy integration and business value with minimal complexity.

One such API is created by Neokred — its innovative BaaS solution, Collectbot, offers a comprehensive suite of banking APIs that enable businesses to seamlessly integrate banking services into their platforms.

Are you ready to transform your business with cutting-edge banking services? Schedule a demo to explore how Collectbot can empower your platform with seamless financial integration.

Remember when transferring money, no matter how little or small, to another bank account was a significant hassle? Most people today may not recall this as vividly, thanks to the advent of internet banking, which gradually made these transactions easier, though they still took time for verification, updates, final payment, etc.

But today, instant digital payments seem to be everywhere. And it doesn’t stop there. A vast number of online applications offer services ranging from wallets and budgeting to investments, savings, credit payments, all accessible at your fingertips.

But with such convenience, the question arises: are customers’ sensitive personal and financial data safe? The good news is that banking information remains secure, thanks to an intermediary  – the Application Programming Interface (API).

APIs serve as the bridge between different applications, facilitating secure communication of customer data. With secure banking APIs, you can now pave the way for a secure financial experience for your customers with ease.

What is API Banking?

API banking refers to APIs that integrate with banks to retrieve and communicate relevant data to other FinTech or non-financial applications. API integration in banking has revolutionized business operations across the board, enabling seamless data exchange and communication.

This is the era of the API economy.

How Does API Banking Work?

For banks, APIs extend their reach beyond traditional boundaries. By partnering with FinTech companies or non-financial businesses without banking licenses, banks can access new customer segments while maintaining data security.

Take Revolut, a popular neobank based in the UK. It operates on a digital-first approach and initially held an e-money license. With the help of several APIs, Revolut created a flexible and scalable platform offering core banking services, payments, currency exchange, open banking, and more. Banking APIs played a phenomenal role in how Revolut scaled up, with an expected user base of 47.5 million by the end of 2024.

Types of API Banking

There are three main types of API banking that businesses can utilize:

1. Open APIs: Publicly available interfaces that allow any developer to access and integrate certain banking functionalities into their applications.
2. Internal APIs: Used within financial institutions to improve efficiency and communication between different departments or systems.
3. Partner APIs: Shared with specific business partners to enable collaborative services or products, offering a balance between openness and control.

Examples of API Banking

There are various real-world examples of businesses across different sectors leveraging API banking to transform their offerings and create new revenue streams. But mainly their functions can be categorized into two: embedded finance and Banking as a Service (BaaS) or Banking SaaS.

According to a detailed study conducted by Finastra in Nov 2023, it was found that the areas of technology that will see a significant year on year investment in the US over the next 12 months would be BaaS, embedded finance and AI with 30% focused on open API implementation. 

These are a few specific examples:

Embedded Payments for E-commerce Platforms

In an e-commerce platform or marketplace, integrating payment APIs can significantly enhance user experience. Merchants get the ability to accept payments directly on the platform, without redirecting customers to external payment gateways. This  simplifies the checkout process and creates a new revenue stream through transaction fees

BaaS for FinTech Startups

For FinTech entrepreneurs, BaaS APIs can be a game-changer. Instead of going through the complex and time-consuming process of obtaining a banking license, you can leverage BaaS APIs to offer digital banking services under your own brand. This allows you to focus on your unique value proposition and customer experience, while leaving the backend digital banking operations to established partners.

Lending APIs for Traditional Banks

If you're a traditional bank looking to modernize your lending process, integrating lending APIs can help you automate credit decisions and offer instant loans. Doing so improves your operational efficiency and enhances customer satisfaction by providing quick, hassle-free lending experiences.

Account Aggregation for Personal Finance Apps

FinTech companies building personal finance management tools can use account aggregation APIs to give users a holistic view of their finances across multiple financial institutions. This creates a sticky product that keeps users engaged and provides opportunities for personalized financial advice.

KYC and Identity Verification for Non-financial Businesses

Non-financial businesses can leverage Know Your Customer (KYC) APIs to streamline customer onboarding processes. Whether you're running a real estate company, a car rental service, or an online marketplace, these APIs can help you verify customer identities quickly and securely, reducing fraud risks and improving compliance.

The Role of APIs in Embedded Finance

Embedded finance represents a significant shift in how financial services are delivered to consumers. It involves integrating financial services directly into non-financial platforms, apps, or products. This integration is made possible through the power of APIs.

API banking integrations save time and resources and allow companies to focus on their core competencies while providing value-added financial services to customers.

Real-world Examples of Embedded Finance

Buy Now, Pay Later (BNPL) Services

E-commerce platforms can integrate BNPL options at checkout, allowing customers to split their purchases into installments.

According to a report, the global BNPL market is expected to reach $3.98 trillion by 2030, growing at a CAGR of 45.7% from 2021 to 2030.

Insurance in E-commerce Platforms

Online marketplaces can offer product insurance at the point of sale, enhancing customer experience and generating additional revenue streams.

FinTech Apps Offering Banking Services

Mobile applications can now provide a full range of banking services, from account opening to loan applications, all powered by APIs. In a report by Plaid, consumers in the US have said that they are 79% comfortable with using FinTech companies to open an account. A very narrow gap in their comfort level compared to traditional banks (87%) has been observed.

How APIs Power Banking-as-a-Service (BaaS)

BaaS is a model that allows non-banking companies to offer financial services by leveraging the infrastructure and licenses of traditional banks through APIs. Unlike traditional banking, where services are provided directly by banks to customers, BaaS enables third-party providers to integrate banking services into their own offerings.

APIs are the backbone of BaaS, facilitating the modular and flexible integration of various banking services. They allow BaaS providers to offer a menu of financial services that can be easily plugged into other companies' products or platforms.

Key Components of BaaS Powered by APIs

• Digital Account Creation: Instant account opening and KYC processes.
• Payment Processing: Integration of various payment methods and real-time transaction processing.
• Compliance and Regulatory Services: Automated checks and reporting to ensure adherence to financial regulations.

A survey by Finextra found that 52% of 25-34 year olds have mentioned that they prefer using their favorite brand’s financial services over traditional banks. This underscores the increasing adoption of API-powered BaaS solutions among the next generation of users.

Benefits of API Banking

API banking offers numerous advantages to different stakeholders in the financial ecosystem.

For Banks

• Innovation and Faster Time-to-Market: APIs letbanks quickly launch new products and services by leveraging existing infrastructure.
• New Revenue Streams Through Partnerships: Banks can monetize their APIs by partnering with FinTech companies and other businesses.
• Enhanced Customer Experience: Integrating with popular apps and platforms allows banks to offer services where customers already spend their time.

For Businesses

• Simplified Integration of Financial Services: Companies can easily add banking capabilities to their products without building complex financial infrastructure.
• Customization and Flexibility in Offerings: APIs authorize businesses to pick and choose the specific banking features they want to offer.
• Increased Customer Engagement and Loyalty: Offering a wider range of services keeps customers within the business’s ecosystem.

Challenges and Considerations

While API banking offers numerous benefits, it also presents challenges:

• Security Concerns: As financial data is shared across multiple platforms, ensuring robust security measures is paramount. According to a report by Salt Security, 95% of respondents have experienced security breaches in their production APIs while only 7.5% of organizations have implemented dedicated API threat testing.
• Regulatory Compliance: The evolving nature of financial regulations poses a challenge for API banking. Companies must ensure that their API integrations comply with local and international financial regulations, such as the Digital Personal Data Protection Act (DPDP) in India.
• Integration Complexity: While APIs simplify integration, the process can still be complex, especially for companies without strong technical expertise. Ensuring seamless integration across different systems and maintaining API performance can be challenging.

Addressing these challenges requires ongoing collaboration between banks, FinTech companies, and regulators to establish best practices and standards for API banking.

How to Implement APIs in Banking

Implementing APIs in banking requires a strategic approach:

• Identifying key services to expose via APIs
• Developing a robust API strategy aligned with business goals
• Ensuring strong security measures and compliance with regulations
• Creating comprehensive documentation for developers
• Establishing a developer portal for easy API access and support
• Continuously monitoring and optimizing API performance

How APIs Drive Innovation in Banking

APIs drive innovation in banking by:

• Enabling personalized financial services through data-driven insights
• Fostering collaborative ecosystems between banks and FinTech companies
• Facilitating rapid prototyping and testing of new financial products
• Integrating emerging technologies like artificial intelligence (AI) and blockchain into banking services

The Future Impact of APIs on Banking

Financial APIs are set to transform banking by encouraging open financial ecosystems and greater inclusivity, known as open banking. They are enabling personalized banking experiences and driving the integration of financial services into various industries through embedded finance. This API-powered transformation is spurring competition and innovation, ultimately reshaping how we interact with financial services in our daily lives.

Final Thoughts

API banking represents more than just a technological advancement; it's a paradigm shift in how financial services are delivered and consumed. As we've explored, financial APIs are enabling unprecedented levels of innovation, collaboration, and customer-centricity in the banking sector.

Neokred is dedicated to empowering businesses with the API solutions they need to thrive in this new era of embedded finance and BaaS. Our comprehensive suite of APIs enables seamless integration of financial services, helping companies of all sizes innovate and expand their offerings.

Interested in exploring how APIs can transform your financial capabilities? Visit Neokred  to learn more about our solutions.

Credit, especially in the financial sector, is a high-stakes game where even one misstep can lead to serious consequences for companies and institutions, potentially impacting entire economies.

So, how do we navigate this minefield without putting the system at risk? The answer lies in credit risk analysis—a careful examination of the return on investment (ROI) and potential default risks every time credit is granted. However, this process has become far more detailed. With FinTech disruptors continuously shifting the market, economic volatility becoming the norm, and regulatory scrutiny tightening amid rising fraud and financial crimes, credit risk analysis has become more complex.

For example, the rate of delinquencies—where borrowers fail to make timely loan payments—has been increasing. Commercial real estate loans saw delinquencies reach 0.22% by the end of 2023, while commercial mortgage-backed securities experienced a steeper climb to 4.7% in early 2024. These trends show how rising interest rates and economic instability have made credit risk analysis increasingly challenging.

Today, the best approach combines time-tested methodologies with cutting-edge technology to analyze credit risks more effectively. This guide will help you learn how to do that, deepen your understanding of credit problems and risk management, and upgrade your existing analysis process. But first, let’s cover the basics.

What is Credit Risk?

Credit risk refers to the possibility that a borrower or counterparty will fail to fulfill their financial obligations according to the agreed terms. This could be in the form of missed loan payments, defaults, or even bankruptcy.

For lenders, such as banks or investment firms, credit risk directly impacts profitability and financial health. For businesses, it can affect cash flow, operational stability, and long-term growth.

What is Credit Risk Analysis?

Credit risk analysis involves evaluating the likelihood of a borrower defaulting on their financial obligations. This comprehensive assessment examines a potential borrower's creditworthiness, financial history, and capacity to repay. 

The analysis helps lenders and businesses make informed decisions about extending credit, determining loan amounts and establishing terms.

The process typically involves:

• Gathering financial information on the borrower
• Analyzing their credit history and current financial status
• Assessing external factors that might affect their ability to repay
• Quantifying potential risks using various models and metrics
• Making a decision based on the risk assessment and the lender's risk tolerance

Who Needs to do a Credit Risk Analysis?

Credit risk analysis is crucial for a wide range of entities, including:

• Banks and financial institutions
• Credit card companies
• Mortgage lenders
• B2B companies offering trade credit
• Investors in bonds or other debt instruments
• Insurance companies
• FinTech companies offering loans or credit products

Even small businesses that offer payment terms to customers must perform some level of credit risk analysis to protect their cash flow and financial health.

Why is Credit Risk Analysis Critical?

In an era of economic uncertainty and rapidly changing market conditions, credit risk analysis has become more important than ever. Here's why:

• Financial Stability: Effective credit risk analysis helps maintain the financial stability of lending institutions and businesses by minimizing potential losses from defaults.
• Regulatory Compliance: Many industries, especially banking and financial services, are subject to strict regulations regarding risk management. Proper credit risk analysis is often a regulatory requirement.
• Informed Decision Making: It provides a basis for making informed decisions about lending, pricing, and credit terms.
• Resource Allocation: By identifying high-risk and low-risk borrowers, companies can allocate their resources more efficiently.
• Competitive Advantage: Better risk assessment allows companies to offer more competitive terms to low-risk customers while appropriately pricing higher-risk loans.

What is the Purpose of Credit Risk Analysis?

The main goal of credit risk analysis is to strike a balance between risk and reward. It aims to:

• Minimize Potential Losses: By identifying high-risk borrowers, lenders can avoid or mitigate potential losses.
• Optimize Pricing: Risk-based pricing ensures that the interest rates or terms offered reflect the level of risk associated with each borrower.
• Improve Portfolio Management: For institutions managing large loan portfolios, credit risk analysis helps maintain a balanced and diversified portfolio.
• Enhance Strategic Decision Making: It provides insights that can inform broader business strategies, such as which market segments to focus on or which products to develop.
• Build Trust and Reputation: Robust risk management practices can enhance a company's reputation among investors, regulators, and customers.

Credit Problems and Risk Management

Credit risk management goes beyond individual borrower assessment. It involves managing risks at a portfolio level and addressing systemic issues. The Bank for International Settlements (BIS) has identified three key areas of focus:

1. Concentration Risk:

‍This isn't just about the largest borrowers, but about exposures where expected losses could significantly deplete capital. For example, in trade credit, offering the same terms to a startup and a public company represents different levels of concentration risk.

2. Credit Processes:

‍These encompass the steps taken to assess, measure, and conduct credit risk analyses. Errors in these processes can lead to significant credit problems, such as:

• Using unvalidated value-at-risk (VaR) models.
• Making inconsistent or non-replicable decisions.
• Poor monitoring of collateral and fraud risks.
• Mispricing of non-financial collateral.

3. Market and Liquidity-Sensitive Exposures:

‍This includes risks from foreign exchange, financial derivatives, and contingent liabilities. It's crucial to distinguish between a borrower's willingness and ability to pay, especially when dealing with illiquid collateral or volatile markets.

How to Analyze Credit Risk: A 5-step Guide

Step 1: Gather Comprehensive Information

Begin by gathering key financial documents such as balance sheets, income statements, and cash flow reports to assess the borrower's financial health. Additionally, review their credit scores, bank statements, tax returns, and, in the case of businesses, their business plans.

Analyze market trends to gain broader context about the borrower’s industry.

Step 2: Assess the Five C's of Credit

Evaluate the borrower’s character (credit history and reputation), capacity (income, cash flow, existing debt), capital (financial strength), collateral (assets to secure the loan), and conditions (loan purpose and external market factors).

Step 3: Utilize Quantitative Models

Use credit scoring models and advanced tools like Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) to assess risk. These models provide a numerical estimate of potential losses, with Expected Loss (EL) calculated using the formula: EL = PD x LGD x EAD.

Step 4: Perform Qualitative Analysis

Beyond the numbers, assess the borrower’s management team, experience, and strategic decisions. Consider broader economic factors like regulatory changes and industry trends that could influence the borrower’s financial stability.

Step 5: Conduct Stress Testing and Scenario Analysis

Simulate various economic conditions, such as recessions or market shocks, to test the borrower’s resilience. This helps determine how well they can continue to meet repayment obligations under unfavorable conditions and protects the overall loan portfolio from unexpected risks.

3 Ways to Upgrade Your Credit Risk Analysis Process

1. Refine Credit Scoring Techniques

To enhance credit scoring, move beyond traditional methods by incorporating real-time financial activities and cash flow status.

Consider external factors like economic stability and industry trends, while implementing market and performance trend analysis for a more comprehensive assessment.

2. Incorporate Trend Analysis

Analyze the client's business performance over-time and monitor relevant market environment trends.

Track national and global economic trends affecting the client's industry, and keep a close eye on changes in their debt-to-income ratio to gain deeper insights into their financial health.

3. Embrace New Technology and Tools

In a 2024 McKinsey survey of senior credit risk executives from 24 financial institutions revealed that 20% have implemented at least one generative artificial intelligence (AI) tool in their processes, with another 60% planning to do so within the year.

These tools, especially AI and machine learning, offer enhanced credit risk modeling and continuous monitoring of customer financial health.

The Fault(s) in the Current Credit Risk Assessment Systems

Current credit risk assessment models are failing to keep pace with the rapidly changing financial market. Traditional models, once reliable, now struggle to capture the complexities of modern economies and innovative business structures. This gap between risk assessment capabilities and real-world dynamics exposes lenders to unforeseen vulnerabilities.

As financial institutions grapple with these challenges, the need for a fundamental overhaul of risk assessment methodologies becomes increasingly urgent.

• Over-reliance on Historical Data: Traditional models often rely heavily on historical data, which may not accurately predict future performance, especially in rapidly changing economic conditions.
• Limited Scope of Traditional Credit Scores: While useful, credit scores don't capture the full financial picture of an individual or business.
• Difficulty in Assessing New Business Models: Emerging industries and innovative business models often lack historical data, making risk assessment challenging.
• Inadequate Consideration of Macroeconomic Factors: Many risk assessment systems fail to adequately account for broader economic trends that can impact creditworthiness.
• Bias in Algorithmic Decision-Making: AI and machine learning models can inadvertently perpetuate or even exacerbate existing biases in lending practices.
• Data Quality and Consistency Issues: Inaccurate or inconsistent data can lead to flawed risk assessments.
• Lack of Real-time Updates: Many systems don't incorporate real-time financial data, leading to outdated risk profiles.

How Neokred Fills Loopholes for Accurate Credit Risk Analysis

Neokred’s mission is to address the critical gaps in traditional credit risk assessment, enhancing accuracy and fairness. By integrating diverse data sources, including alternative and real-time data, it creates a more comprehensive borrower profile.

Neokred's real-time monitoring ensures risk profiles stay current, while customizable models adapt to specific business needs. By incorporating alternative data and focusing on bias mitigation, we extend reliable risk assessment to underserved markets. This innovative approach leads to more informed lending decisions and healthier loan portfolios.

Upgrading your current credit risk analysis process is a crucial step towards ensuring your institution or business’s long-term financial stability and success, and partnering with Neokred will give you that much-needed edge needed to thrive in the current era. Talk to our sales team today.