Page 7 - coffee table book-Nov 2020 - web_Neat
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There has been an alarming increase in the number of bad loans,
                                                                                                                                        frauds, and non-performing assets in banks in recent times which
               02                                                                                                                       have resulted in a critical imbroglio in the Indian banking system. The
                                                                                                                                        lack of due diligence before and after loan disbursal is the single
                                                                                                                                        largest contributing factor to these frauds apart from defaults,
                                                                                                                                        economic slowdown, and lax lending practices. With the help of
                                                                                                                                        disruptive technologies such as artificial intelligence (AI), machine
                                                                                                                                        learning (ML) and streaming, data- lenders will be able to “detect
               BCT Digital launches the                                                                                                 suspicious transactions in loan accounts on a real-time/near real-time
                                                                                                                                        basis, which will positively contribute to the overall health of the
               rst ever ‘Real-Time                                                                                                     credit portfolio.

               Early Warning Systems’                                                                                                   “When we launched the first EWS product way back in 2016, our goal

               to tackle Non-                                                                                                           was to make in India – i.e. make it local for the global marketplace. Our
                                                                                                                                        EWS implementations have yielded the maximum ROI – for instance
               Performing Assets                                                                                                        even if banks can reduce 1% of the NPA for a bank of asset size of 50
                                                                                                                                        B with an average NPA of 10%, will bring back at least 500 M per
                                                                                                                                        bank/per year. Now, with Real-time Early Warning System for credit
               Simplifying credit monitoring for the                                                                                    monitoring banks have the opportunity to prevent bad loans at the
               BFSI sector to control the rising                                                                                        disbursement stage itself. We aim to empower every financial institution
               number of NPAs and nancial frauds                                                                                       to be risk-free and provide them with a technologically robust and
                                                                                                                                        cutting-edge risk management ecosystem to rely upon. With the
                                                                                                                                        current NPA situation in the country and the way the banking industry is
                                                                                                                                        changing due to COVID-19, our focus has been on disruptive
                                                                                                                                        technologies like – AI, ML, predictive analytics and blockchain, to
               Jaya Vaidhyanathan
               CEO, BCT Digital                                                                                                         catapult India into the next generation of banking. Through the real-
                                                                                                                                        time EWS, we want to empower banks by helping them make the right
                                                                                                                                        decision, stay ahead of the competition, and prevent possible NPAs and   Now, with Real-time Early
                                                                                                                                        banking frauds with the help of real-time data.” said Jaya
                                                                            BCT Digital, a global fintech  company                      Vaidhyanathan, CEO at BCT Digital.                                  Warning System for credit
                                                                            specializing in BFSI,Predictive Analytics, and                                                                                  monitoring banks have the
                                                                            Risk Management, has announced the launch                   Today’s early warning systems are more effective in not just        opportunity to prevent bad
                                                                            of their specialized ‘Real-Time Early Warning               monitoring and detecting red flags, but also putting banks’ interests   loans at the disbursement
                                                                            Systems for credit monitoring’ – the first-ever             ahead of individual interests by measuring and monitoring risks,    stage itself. We aim to
                                                                            real-time monitoring solution to tackle Non-                placing banks back in control of their data and decisions. In this   empower every nancial
                                                                            Performing Assets (NPA). As a FinTech                       current unprecedented situation with the pandemic, real-time        institution to be risk-free and
                                                                            specialist in risk management solutions, BCT                monitoring of transactions in the loan portfolio will provide yet   provide them with a
                                                                            Digital has been helping banks and financial                potent ammunition for banks to keep the risk profile of the credit   technologically robust and
                                                                            institutions through their pioneering product               portfolio, reeling under the impact of the situation, under check.
                                                                            “rt360 – Early Warning System”. The product                                                                                     cutting-edge risk management
                                                                                                                                                                                                            ecosystem to rely upon”
                                                                            is currently running in the top public and                  A real-time EWS works on three core principles – integration with
               news                                                         private sector banks in India and across the                source systems, real-time scanning of transactions, and issuing
                                                                            globe. “rt360- Real-Time Early Warning                      reverse feedback. EWS will monitor some of the major transaction
                                                                            System for Credit Monitoring” is their AI-                  types on a real-time basis from originating through intra-bank      BCT Digital’s strength lies in identifying a
                                                                            based innovative upgrade to their current                   transfers, inward & outward cheque clearing, etc., from the point of   yet-unsolved business problem and
                                                                            EWS product suite. “Real-Time EWS has the                   initiation to completion. A powerful and configurable rule engine   leveraging emerging technologies, such
                                                                            potential to detect and prevent suspicious or               facilitates the system to recognize potential fraudulent or suspicious   as AI and predictive analytics, to solve it.
                                                                            fraudulent transactions, effectively paving way             transactions as and when they get initiated on a real-time basis and   The company’s mission has been
                                                                            for a transition from detective to preventive               warn the bankers, giving them the option to approve or reject the   ‘reverse innovation’ – making products in
                                                                            credit risk monitoring’’.                                   transaction.                                                        India, for India, and the global market.


               04  rt360 Less risk, more coffee                                                                                                                                                                       rt360 Less risk, more coffee  05
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