How much value does your bank or financial institution place on insights from the analyses of audited financial statements for your credit evaluation process? The answer will probably vary from one bank to another, with the need to obtain from business borrowers and maintain on file updated financial statements the only commonality.

Some banks and financial institutions view audited financial statements as understated, mostly because these are audited for tax purposes, and use qualitative measurements, such as whether another bank has already lent to a particular borrower, in their evaluation of business loan applications. This is dangerous as banks have different risk tolerances and collateral arrangements with their business customers.

Pioneering fintech rating solution CreditBPO and the Rural Bankers Association of the Philippines (RBAP) have jointly announced a partnership in a move that supports the industry’s digitization efforts. The partnership will help streamline RBAP members' credit risk management workflows through quick turnaround times with auto-generated financial condition rating and benchmarking reports, focusing on actionable insights for prospective Small and Medium (SME) loan applicants and current SME customers. This will encourage risk-based lending within the SME sector, reduce its members' overall cost of lending, improving regulatory compliance and competitiveness that will spur SME loan portfolio growth, all enabled by technology.