Mumbai (Maharashtra) [India], December 30 (ANI/NewsVoir): The Government of India collected Rs 1.52 trillion as goods and services tax (GST) in October, reporting a 16.6 per cent year-on-year increase, driven by festive spending, better compliance, and higher tax rates. This collection is expected to increase further and exceed FY23 budget estimates by Rs 1.3-1.4 trillion. Amidst this, Jocata launched its proprietary AI/ML-based risk and business intelligence score, SME DNA, which will fast-track priority sector lending for banks and empower MSMEs to review and improve their business performance and get access to timely credit. "The GST framework is a treasure trove of business transactions data and is now beginning to drive financial institutions' lending decisions, especially to MSMEs," said Prashant Muddu, CEO & MD, Jocata, a B2B digital lending and compliance fintech. SME DNA comes at a time when there is a growing demand for GST-based analytics. A strong regulatory push, growing GST filing compliance and the recent announcement of GSTN as a Financial Information Provider (FIP) under the Account Aggregator framework is expected to ease access to large volumes of consent-based GST data and grow the analytics outcomes. With the government emphasizing on extending credit term to small enterprises, the SME DNA score will aid underwriters with enhanced 'Go-No-Go' decision within 2 minutes, thereby accelerating lending journey for MSMEs. With predictive insights, the SME DNA score will also spur credit innovation for banks in the form of contextual and targeted lending solutions and products aimed at the MSME segment, including embedded lending, GST bridge loans, sachet loans, BNPL, and cash-flow-based loans, among others. During its initial stage, the SME DNA score aided one of the top five private banks in India to build a business model in the small ticket segment of unsecured business loans in the range of Rs 2 lakh to 20 lakh, and also secured overdraft of up to Rs 2 crores digitally from the ground up, Muddu said. "The outlook for GST-based analytics is very promising and it can significantly reduce the current problems that bankers face in credit decisioning for the priority sector that stem from a heavy reliance on expert judgement leading to longer decisioning times," he added. GSTN filings are considered a goldmine of authentic, reliable, digitally available, dynamic data. By leveraging cutting-edge data science techniques on GSTN filings, SME DNA can empower underwriters with more transparent insights throughout the business cycle of credit seekers and reduce the Time-to-Credit (disbursal) for MSME borrowers from 2-5 days to less than 6 hours. Jocata's Data Sciences team has analyzed MSMEs' filing data from GSTN since its advent to develop the score that represents the risk of the MSME business. The score assesses the entity for its propensity to pay tax, checks the health of and (over) dependence on the MSMEs' buyers and suppliers, among other risk factors. It also helps banks' underwriters and business teams in improving credit decisioning and monitoring, besides identifying early warning signals at entity and portfolio level, which is especially important at a time when banks and financial institutions are facing pressures to reduce Non-Performing Assets (NPAs). This is key to easing the trust deficit financial institutions face in lending to MSMEs and giving transparency and information throughout the business cycle. Jocata has been working with some of the largest financial institutions to power their digital transformation journeys across a suite of fintech solutions including digital onboarding, risk scoring and assessment, credit underwriting, fraud prevention, API infrastructure and management, early warning systems among others. Some of the key banking partners include ICICI Bank, Axis Bank, Bank of Baroda, IndusInd Bank, Kotak Mahindra Bank, RBL Bank, Federal Bank, Standard Chartered, DBS Bank, Tata Capital, Airtel Payments Bank and American Express. This story has been provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)
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Baroda , Gujarat , India , United States , Mumbai , Maharashtra , American , Prashant Muddu , Axis Bank , Airtel Payments Bank , Jocata Data Sciences , American Express , Indusind Bank , Kotak Mahindra Bank , Financial Information Provider , Account Aggregator , Data Sciences , Non Performing Assets , Federal Bank , Standard Chartered , Tata Capital , Mumbai Maharashtra India , Ecember 30 Ani Newsvoir The Government Of India Collected Rs 1 52 Trillion As Goods And Services Tax Gst In October , Eportinga 16 6 Per Cent Year On Increase , Riven By Festive Spending , Better Compliance , Nd Higher Tax Rates This Collection Is Expected To Increase Further And Exceed Fy23 Budget Estimates By Rs 1 3 4 Trillion Amidst , Ocata Launched Its Proprietary Ai Ml Based Risk And Business Intelligence Score , Me Dna , Hich Will Fast Track Priority Sector Lending For Banks And Empower Msmes To Review Improve Their Business Performance Get Access Timely Credit Quot The Gst Framework Isa Treasure Trove Of Transactions Data Is Now Beginning Drive Financial Institutions 39 Decisions , Specially To Msmes , Uot Said Prashant Muddu , Ceo Amp Md , Locata , A B2b Digital Lending And Compliance Fintech Sme Dna Comes Ata Time When There Isa Growing Demand For Gst Based Analyticsa Strong Regulatory Push , Rowing Gst Filing Compliance And The Recent Announcement Of Gstn Asa Financial Information Provider Fip Under Account Aggregator Framework Is Expected To Ease Access Large Volumes Consent Based Data Grow Analytics Outcomes With Government Emphasizing On Extending Credit Term Small Enterprises , He Sme Dna Score Will Aid Underwriters With Enhanced 39 Go No Decision Within 2 Minutes , Hereby Accelerating Lending Journey For Msmes With Predictive Insights , He Sme Dna Score Will Also Spur Credit Innovation For Banks In The Form Of Contextual And Targeted Lending Solutions Products Aimed At Msme Segment , Ncluding Embedded Lending , St Bridge Loans , Sachet Loans , Npl , Nd Cash Flow Based Loans , Mong Others During Its Initial Stage , He Sme Dna Score Aided One Of The Top Five Private Banks In India To Builda Business Model Small Ticket Segment Unsecured Loans Range Rs 2 Lakh 20 , Nd Also Secured Overdraft Of Up To Rs 2 Crores Digitally From The Ground , Uddu Said Quot The Outlook For Gst Based Analytics Is Very Promising And It Can Significantly Reduce Current Problems That Bankers Face In Credit Decisioning Priority Sector Stem Froma Heavy Reliance On Expert Judgement Leading To Longer Times , Uot He Added Gstn Filings Are Considereda Goldmine Of Authentic , Eliable , Digitally Available , Ynamic Data By Leveraging Cutting Edge Science Techniques On Gstn Filings , Me Dna Can Empower Underwriters With More Transparent Insights Throughout The Business Cycle Of Credit Seekers And Reduce Time To Disbursal For Msme Borrowers From 2 5 Days Less Than 6 Hours Jocata 39s Data Sciences Team Has Analyzed Msmes 39 Filing Gstn Since Its Advent Develop Score That Represents Risk Assesses Entity Propensity Pay Tax , Hecks The Health Of And Over Dependence On Msmes 39 Buyers Suppliers , Mong Other Risk Factors It Also Helps Banks 39 Underwriters And Business Teams In Improving Credit Decisioning Monitoring , Esides Identifying Early Warning Signals At Entity And Portfolio Level , Hich Is Especially Important Ata Time When Banks And Financial Institutions Are Facing Pressures To Reduce Non Performing Assets Npas This Key Easing The Trust Deficit Face In Lending Msmes Giving Transparency Information Throughout Business Cycle Jocata Has Been Working With Some Of Largest Power Their Digital Transformation Journeys Acrossa Suite Fintech Solutions Including Onboarding , Isk Scoring And Assessment , Credit Underwriting , Fraud Prevention , Pi Infrastructure And Management , Arly Warning Systems Among Others Some Of The Key Banking Partners Include Icici Bank , Bank Of Baroda , Rbl Bank , Dbs Bank , Irtel Payments Bank And American Express This Story Has Been Provided By Newsvoir Ani Will Not Be Responsible In Any Way For The Content Of Article ,
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