BCT Digital launches the first ever ‘Real-Time Early Warning Systems’ to tackle Non-Performing Assets

Simplifying credit monitoring for the BFSI sector to control the rising number of NPAs and financial frauds

BCT Digital, a global FinTech company specializing in BFSI, Predictive Analytics, and Risk Management, has announced the launch of their specialized ‘Real-Time Early Warning Systems for credit monitoring’ – the first-ever real-time monitoring solution to tackle Non-Performing Assets (NPA). As a FinTech specialist in risk management solutions, BCT Digital has been helping banks and financial institutions through their pioneering product “rt360 – Early Warning System”. The product is currently running in the top public and private sector banks in India and across the globe. “rt360- Real-Time Early Warning System for Credit Monitoring” is their AI-based innovative upgrade to their current EWS product suite. “Real-Time EWS has the potential to detect and prevent suspicious or fraudulent transactions, effectively paving way for a transition from detective to preventive credit risk monitoring’’.

There has been an alarming increase in the number of bad loans, frauds, and non-performing assets in banks in recent times which 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 suspicious transactions in loan accounts on a real-time/near real-time basis, which will positively contribute to the overall health of the credit portfolio.

“When we launched the first EWS product way back in 2016, our goal was to make in India – i.e. make it local for the global marketplace. Our EWS implementations have yielded the maximum ROI – for instance 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 monitoring banks have the opportunity to prevent bad loans at the disbursement stage itself. We aim to empower every financial institution 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 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 banking frauds with the help of real-time data.” said Dr. Jaya Vaidhyanathan, CEO at BCT Digital.

Today’s early warning systems are more effective in not just monitoring and detecting red flags, but also putting banks’ interests ahead of individual interests by measuring and monitoring risks, placing banks back in control of their data and decisions. In this current unprecedented situation with the pandemic, real-time monitoring of transactions in the loan portfolio will provide yet potent ammunition for banks to keep the risk profile of the credit portfolio, reeling under the impact of the situation, under check.

A real-time EWS works on three core principles – integration with source systems, real-time scanning of transactions, and issuing reverse feedback. EWS will monitor some of the major transaction types on a real-time basis from originating through intra-bank transfers, inward & outward cheque clearing, etc., from the point of initiation to completion. A powerful and configurable rule engine facilitates the system to recognize potential fraudulent or suspicious transactions as and when they get initiated on a real-time basis and warn the bankers, giving them the option to approve or reject the transaction.

BCT Digital’s strength lies in identifying a yet-unsolved business problem and leveraging emerging technologies, such as AI and predictive analytics, to solve it. The company’s mission has been ‘reverse innovation’ – making products in India, for India, and the global market.