Being a cornerstone of loan application processing, bank statement analysis is a time-consuming and labor-intensive process. Bank statement analysis is the process of reviewing and analyzing a bank statement to gain insights into a person or organization’s financial situation. The analysis involves reviewing the transactions listed on the statement, including deposits, withdrawals, and transfers, and categorizing them into income and expense categories.
There are a number of reasons for performing bank statement analysis, but most bank statement analysis is performed to evaluate a borrower’s financial health. For example, when a person approaches a banking organization for financial help, the banking organization checks the capability of the borrower’s financial health with respect to income and repayment capacity. After performing a bank statement analysis of the last 6 months of borrowers, banking and financial services make grading or scoring on income and spending analysis to grant loans, that’s what the basic purpose of bank statement analysis is.
Let’s discover more about bank statement analysis in this blog like why it is important and what is the solution to fast-track the bank statement analysis.