API-Driven Data Aggregation Can Mitigate The Risk Of Banking Credit Defaults: Akanksha Dutt

NEW DELHI: In today's competitive market, data is key to breaking into the finance sector and gaining an edge. The Indian financial sector has witnessed a significant transformation in recent years, thanks to technological advancements and regulatory reforms. Currently, data is growing at an unprecedented rate, making it crucial for businesses to effectively aggregate and analyze this vast amount of information as credit risk.

According to a recent report, Indian banks are at a higher risk of defaulting on unsecured loans because the share of lending to overdue borrowers rose from 12 percent to 23 percent. Indian banks' credit losses are likely to rise by 50–200 basis points due to the increasing risks of defaults on retail unsecured loans, according to UBS.

Lack of aggregated data and effective analysis of this data can hinder banks' ability to accurately assess and manage these increasing risks. Without a comprehensive understanding of the trends and patterns within their loan portfolios, banks may struggle to identify potential defaulters and take proactive measures to mitigate losses. Therefore, it is imperative for Indian banks to prioritize the integration of robust data aggregation API’s and analysis systems in order to safeguard their financial stability in the face of rising default risks. 

"Data is the key to unlocking insights and driving informed decision-making in the financial industry. With Nexuses advanced data solutions API, BFSI-CISO and NBFCs can gain a competitive edge by leveraging real-time data analytics to identify emerging trends and make proactive business decisions. BFSI and CISO can leverage data aggregation APIs and solutions to mitigate credit risk and make informed decisions. By integrating data aggregation API’s into their systems, BFSI CISO NBFC’s can access comprehensive credit data from multiple sources, providing a holistic view of their customers' credit profiles," said Akanksha B. Dutt, Founder and CEO of Nexensus. 

This enables the businessed to identify potential risks, monitor credit activities in real-time, and proactively manage their credit portfolios. Dutt said data-led decision-making can mitigate these risks by enabling banks to identify and assess potential defaulters more accurately. By leveraging advanced data aggregator APIs, banks can analyze vast amounts of customer data to identify patterns and indicators of default.

Data aggregator API allows banks to make informed decisions and take proactive measures to mitigate default risks. Implementing robust data aggregation and analysis systems will help banks monitor and manage their overall portfolio performance, enabling them to identify potential vulnerabilities and take timely actions to ensure financial stability, she added. By harnessing the power of data, financial institutions can make informed decisions, assess creditworthiness accurately, and effectively manage risks. 

By leveraging robust data solutions provided by Nexensus, BFSI-CISO and NBFCs can enhance their risk management practices and drive better financial outcomes while protecting sensitive financial data. With real-time updates and alerts, they can stay updated on any changes in their customers' creditworthiness and take appropriate actions.