In order to reduce credit risk, financial institutions usually conduct a thorough review of the credit-granting process. It’s easy to see why this is important when you consider that the Adjusted Delinquency Ratio in Mexico, for example, was 4.48 percent in 2021.

Due to its complexity, this process normally demands a significant time and financial investment. However, there are currently a number of options available to assist you in simplifying the process of obtaining credit.

Simplify the process of granting credit with these tips

Many potential borrowers question how they may get a SME loan more quickly, and the answer lies in emerging technologies. Automate your procedures by applying these suggestions.

1. Detect preferences and behaviors

If you use artificial intelligence (AI) and machine learning (ML), you’ll be able to recognize behavioral patterns that a person wouldn’t be able to detect, and reply to a credit request with a proposal tailored to the customer’s profile.

In this scenario, AI enables for a more precise credit score, while ML uses this data to analyze and discover data connections that help to understand the client’s behaviors and preferences.

2. Analyze positive indicators

Thanks to the integration of technologies, you will also be able to quickly analyze various indicators that have a great influence on mitigating credit risk.

You can, for example, learn about a company’s business connections with other institutions or products. Have they lasted a long time and been consistent? You’ll also be able to learn how many customers and suppliers a company has, what they’re like, and how their relationships have historically been.

3. Determine the credit risk

Credit history, company financial status, and payment ability, among other things, are criteria for providing a loan that you must examine in order to determine the credit risk.

An automated tool compiles all of this information into a report that will assist you in making a more informed decision.

4. Integrate a credit analysis API to your cloud

You can verify a business, find behavior patterns, assess indicators, and determine credit risk in minutes if you have a robust API integrated with your system that allows you to extract data from leading accounting systems, analyze it, and generate reports. Your borrowers won’t have to wonder how to get a SME loan quickly because you’ll make the procedure more efficient and secure.

The CRiskCo API not only pulls data from accounting systems, but also uses AI and machine learning to provide credit risk analysis. Furthermore, once the credit has been provided, it allows you to monitor the borrower’s information (and know their financial health) by requesting that the information be updated on a weekly, monthly, semi-annual basis, or whatever needed.