Post demonetization of higher value currency notes on November 8, the Indian banks witnessed a huge inflow of cash. So far banks have received deposits worth over Rs 12.4 lakh crores in scraped currency notes. A sudden spurt in cash levels has led to excess liquidity in the banking system. It has also forced the banks to park excess liquidity in safe haven government bonds. However, a large portion of cash deposits is expected to be pulled out from banks in the near-term. But despite expected cash withdrawals, liquidity in the banking system is set to improve in medium to long-term.
Improvement in liquidity will force banks to ease interest rates. At the same time, it will also push banks to accelerate lending operations. However, conventional methods (word of mouth, reading newspapers, cold-calls and referrals) to augment lending are no longer relevant in the today’s digital world. Hence, banks will have to explore new and smart ways to reach out to the prospective clients.
To help banks in identifying potential corporate borrowers, Heckyl has developed Business Intelligence (BI) module. Heckyl’s BI module, powered by news and sentiment analytics, identifies companies, who at some point in time, may require funds to finance their various business operations.
Any news update on business orders, new projects, expansion and growth plans, product launch, fund raising, joint venture, M&A, business transactions etc. is potential corporate lending opportunity for the banks.
For instance, Rs 2,789 crore order secured by BGR Energy Systems from NLC India is a lending opportunity for the bank. BGR Energy Systems may look for short-term loan from bank to fulfill such a large order. The bank’s business intelligence team can approach BGR Energy with an offer to provide short-term loan or bill discounting facility.
Similarly, the banks can spot such lending opportunities by keeping watch on news updates.
BI module, powered by Heckyl’s big data and artificial intelligence capabilities, can help bank’s business intelligence team with specific alerts on such corporate updates in real-time. (Read more on BI module in our previous blogs – Find New Business Opportunities Like Never Before and How Can Heckyl Help Banks to Find New Customers?)
Access to such deciphered information in real-time can enable the business intelligence team to considerably cut down on the time elapsed in discovery of relevant information. This time can be channelized to effectively target the right companies at the right time to bring more business to the bank.
To know more about Business Intelligence Module, email us at firstname.lastname@example.org.