Risk Analytics for NBFCs/Banks/FI
Navigating the future of financial risk with data-driven insights.
The Importance of Risk Analytics for NBFCs/Banks/FI
NBFCs/Banks/FI play a vital role in India’s financial ecosystem by extending credit to underserved segments and driving economic growth. However, they operate in a dynamic environment fraught with risks. Risk analytics is the process of using data, quantitative techniques, and technology to assess, manage, and mitigate these risks. For NBFCs/Banks/FI, a robust risk analytics framework is no longer a luxury but a fundamental necessity for survival and sustainable growth.
It empowers them to make smarter lending decisions, detect and prevent fraud, comply with regulatory mandates, and optimize their portfolio performance. By transforming raw data into actionable intelligence, risk analytics helps NBFCs/Banks/FI maintain stability and build a resilient business model.
Key Areas of Risk Analytics
Credit Risk
This is the most critical risk for an NBFC. Analytics helps in underwriting by providing a comprehensive view of a borrower’s creditworthiness. It involves real-time analysis of bank statements, GST data, income tax returns, and credit bureau scores to assess repayment capacity. Predictive models help forecast potential defaults, enabling NBFCs/Banks/FI to manage their loan portfolios proactively.
Fraud & Compliance Risk
Analytics is instrumental in combating application fraud, identity theft, and money laundering. Advanced RegTech solutions use AI and machine learning to automate KYC, perform due diligence, detect forged documents, and screen against global watchlists in real time. This not only protects the NBFCs/Banks/FI from financial loss but also ensures strict regulatory compliance.
Operational Risk
Operational risk includes losses from failed internal processes, systems, or human error. Analytics helps in monitoring business processes, identifying bottlenecks, and implementing early warning systems (EWS) for unusual activities. This continuous monitoring enables NBFCs/Banks/FI to manage their operations efficiently and minimize potential losses.
Leading Risk Analytics Service Providers in India
A number of firms specialize in providing risk analytics solutions tailored for the financial services sector. Below is a summary of some of the key players and their primary services.
| No. | Company Name | Key Services | Website |
|---|---|---|---|
| 1 | Perfios Software Solutions | Credit Risk, RegTech/RCU, EWS & Monitoring, Compliance. | perfios.com |
| 2 | Signzy | Fraud Detection & RCU, AML Screening, Compliance, Company Risk. | signzy.com |
| 3 | IDfy (Baldor Technologies) | Fraud Detection, Compliance (KYC/AML), RCU Automation, Info Security. | idfy.com |
| 4 | TransUnion CIBIL | Credit Risk, EWS & Monitoring, Fraud & ID, Company Risk. | transunioncibil.com |
| 5 | CRIF High Mark | Credit Risk, Collection Risk, Fraud Detection, Analytics & Consulting. | crifhighmark.com |
| 6 | Experian India | Credit Risk, Fraud Detection, Collection Risk, EWS & Monitoring. | experian.in |
| 7 | Oracle Financial Services Software (OFSS) | ERM, ORM, & Compliance, AML & Transaction Monitoring, Credit Risk. | oracle.com/financial-services |
| 8 | Refinitiv (An LSEG Business) | AML Screening, Compliance & RegTech, Company Risk. | lseg.com/risk-intelligence |
| 9 | SAS Institute (India) | AML & Fraud, Credit Risk, ERM & ORM. | sas.com/en_in |
| 10 | NICE Actimize | AML & Transaction Monitoring, Fraud Detection, Compliance. | niceactimize.com |
| 11 | Tata Consultancy Services (TCS) | Compliance & AML, Credit & Market Risk, Info Security. | tcs.com/tcs-bancs |
| 12 | Infosys Finacle | ORM & ERM, Fraud Detection, Compliance. | finacle.com |
| 13 | Deloitte India | ERM & ORM, Info Security, Compliance & Financial Crime. | deloitte.com/in |
| 14 | PwC India | Fraud Detection & RCU, ERM & Compliance, Info Security. | pwc.in |