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How cash flow data can help lenders increase approvals and reduce costs

21 Dec 2023
featured how cash flow data can help lenders increase approvals and reduce costs

Lenders of all kinds face the challenge of balancing maximizing loan approvals and managing risk and bottom-line efficiency. With the right technology, cash flow data can transform these challenges into opportunities for lenders to improve their processes.

By harnessing advanced cash flow analysis and automated tools like Ocrolus, lenders can achieve faster, more accurate borrower assessments, leading to more loan approvals and reduced operational costs.

This technology integration also streamlines the lending process and helps improve customer experiences, fostering stronger borrower-lender relationships and setting new standards in the financial industry.

Maximizing loan approvals with advanced cash flow analysis

Correctly assessing borrowers’ financial health is a significant challenge for lenders across the industry. Traditional methods of manually reviewing documents and data present obstacles in understanding the fiscal stability of borrowers, leading to potentially risky lending decisions. The time-intensive nature of manual review further complicates this and can lead to slower loan processing and increased operational costs.

By leveraging automated cash flow analysis, lenders gain insights into borrowers’ debt capacity, cash flow trends, volatility and more, giving them greater confidence in measuring each applicant’s ability to repay a loan. This automation can significantly reduce inefficient manual analysis, enabling lenders to make quick, informed and accurate decisions.

By automating analysis with tools like Ocrolus, lenders gain a unified view of cash flow to more efficiently identify qualified borrowers and increase approval rates for qualified borrowers. This automation boosts efficiency and betters both the accuracy and speed of the overall loan approval process.

Cost reduction through automated financial analysis in lending

Automated tools like Ocrolus have revolutionized the lending process by cutting operational costs and streamlining the entire process – from data capture to analysis – making it more efficient and cost-effective. 

Automated cash flow analysis minimizes human-led tasks, drastically decreasing common manual errors and saving time and resources. This leads to improved accuracy in financial analysis, leading to more cost-effective lending practices.

One real-life example of this comes from the pro-borrower mortgage lender Deephaven Mortgage

Deephaven integrated Ocrolus into its loan origination process, enabling the company to capture, verify and analyze borrower bank statement data and calculate real income in minutes. They then conducted internal research to gauge underwriter productivity, discovering savings of over two hours of underwriters’ time for each mortgage application using Ocrolus technologies.

Benefits like this show the significant impact of automation on the lending industry, both in terms of process efficiency and cost savings.

Enhancing customer service with quick and accurate lending processes

Fast and precise cash flow analysis also benefits customer satisfaction and trust. When lenders can provide quicker loan processing and decision-making, made possible by tools like Ocrolus, borrowers are rewarded with faster access to capital. 

This swiftness and accuracy in handling financial data meet the expectations of today’s borrowers and improve the overall customer experience. 

By integrating Ocrolus into its workflow, Fintech innovator Yardline improved its customer experience, providing borrowers with a hassle-free document submission process. 

Yardline uses Ocrolus technology to digitize bank statements and generate core cash flow analytics for quicker, more informed decision-making. When potential customers select an advance, these fast approvals are a competitive advantage over traditional and online lenders.

Leveraging automation for risk assessment and informed decisions

The benefits of cash flow analysis extend beyond lending to help other companies make informed financial decisions. With a significant rise in self-employment and non-traditional profiles, cash flow analysis based on bank statement data can provide a clear picture of financial health for various profiles. 

In another example from the property management industry, Ocrolus cash flow and automated fraud detection technology have helped STYL Residential improve decision-making and reduce risk in property rental approvals. 

The company adopted Ocrolus technology to enhance fraud detection and calculate income with automated bank statement analysis. Embedding automation in their workflow gave STYL Residential the confidence to scale with a consistent decision-making process for every application.

The strategic use of cash flow data and AI-driven document automation technology like Ocrolus is transforming the lending landscape. These innovations allow financial service providers to measure borrowers’ revenue and expenses precisely while identifying cash flow trends, giving them the information they need to make better underwriting decisions.

using automation for risk assessment

As the financial industry continues to evolve, embracing these advancements is key for lenders to stay competitive and meet the dynamic needs of borrowers.

Book a demo to discover how Ocrolus can revolutionize your lending process and boost operational efficiency.

Key takeaways:
  • Automated cash flow analysis gives lenders valuable insights into borrowers’ debt capacity, cash flow trends, volatility and more for greater confidence in measuring each applicant’s ability to pay.
  • When lenders can provide quicker loan processing and decision-making, made possible by tools like Ocrolus, borrowers also see benefits in a better, more streamlined customer experience. 
  • Cash flow analysis provides financial institutions with a better, more unified view of borrowers’ financial health for more accurate and efficient underwriting decisions.