What Is an SMS Analyser? Why Businesses Need It for Faster Customer Financial Analysis
Digital lending platforms, NBFCs, banks, BNPL, and fintech companies face difficulties in finding and evaluating thin-file customers’ financial profiles due to a lack of financial information. These customers don’t have bank statements, salary slips, or strong credit history. The traditional methods rely on manual documentation, which is inefficient. Apart from this, monitoring the spending behaviour of a large number of customers is difficult.
An SMS Analyser solves all these issues and streamlines the monitoring and financial evaluation process. It acts as a reliable alternative to bank statement analysis and traditional credit checks.
What is an SMS Analyser?
SMS Analyser is a solution that scans and processes transaction-related SMS messages into financial insights. It analyses transaction messages and categorizes them into income, expenses, EMIs, and other financial activities. This helps businesses understand the user’s income and spending habits.
In simple words, it converts unstructured SMS data into structured information such as income patterns, expenses, loan repayments, and account activity.
How Does an SMS Analyser Work?
SMS Analyser includes a simple four-step process:
- Step 1: Consent to Access Transaction SMS
Businesses need to obtain user consent to access transaction-related SMS through the API securely.
- Step 2: Smart Parsing
SMS Analyser extracts transaction details, amounts, and merchant information from SMS messages using AI.
- Step 3: Pattern Recognition
AI analysis identifies spending patterns, income sources, and financial behaviour from SMS history.
- Step 4: Financial Insights
After thorough SMS analysis and categorization, it provides a comprehensive financial profile and credit indicators from SMS analysis.
Why Do Businesses Need an SMS Analyser?
Businesses need an SMS Analyser for financial evaluation and simplifying underwriting:
- Faster Customer Financial Profiling
It analyses customer transaction SMS alerts in real time. It helps businesses understand income, spending, and repayment patterns within minutes. The automatic AI-powered analysis eliminates manual reviews.
- Alternative Credit Assessment for Thin Line Customers
Financial institutions find it difficult to assess thin file customer due to a lack of credit history and score. The SMS data helps in checking income stability and financial behaviour. SMS analysis helps in the quick evaluation of thin-file customers.
- Enhances Fraud Detection and Risk Assessment
It identifies unusual financial activity, such as multiple loan repayments. It helps detect high risk borrower and fraud cases early.
What features should businesses look for in SMS Analyser?
Before selecting an SMS Analyser, businesses should look for the following features:
High SMS Parsing Accuracy
It should extract and provide accurate results with minimum errors. Any discrepancies can cause issues in credit evaluation. It should correctly identify details such as:
- Transaction Amount
- Transaction Type (debit/credit)
- Sender or bank name
- Date and time of the transaction
AI-Based Transaction Categorization
The analyzer should automatically categorize transactions into:
- Salary Credits
- Utility Payments
- Shopping Expenses
- Loan EMIs
- Wallet or UPI Transactions
Proper categorization helps businesses understand customer spending behaviour and financial patterns more effectively.
Income Detection and Cash Flow Analysis
A good SMS Analyser should be able to identify salary deposits or regular income patterns from SMS alerts. It helps businesses evaluate:
- Monthly income stability
- Cash flow trend
- Financial repayment capacity of the borrower
Fraud and Risk Indicator
It should provide a risk signal such as
- Frequent loan-related SMS alerts
- Multiple Lending Apps
- Irregular financial activity
These risk indicators helps businesses identify risky or fraudulent customers early.
Secure and Privacy Compliant Data Processing?
As SMS data contains sensitive financial information, the analyzer should follow strong security practices, including:
- User consent-based access
- Data Encryption
- compliance with data privacy regulations
Why should businesses choose Finpass SMS Analyser?
Businesses should choose Finpass SMS Analyser because it offers 98% accuracy and all the features businesses need in an SMS Analyser, including:
- Smart Filtering, Instant Extraction, and Pattern Recognition.
- Privacy First and Transaction Amount Extraction.
- Duplicate Detection and Multi-language Support.
- Historical Trend Analysis and Merchant Identification.
- Spam and Promotional Filter.
- Account Balance Tracking and Batch Processing.
- No bank integration and Automatic Risk Signals.
It analyzes financial information and provides a comprehensive borrower profile without bank statements. You can monitor transactions, find red flags, understand spending behavior, and assess thin file customer automatically at your command. This makes it a reliable and ideal solution for banks, Fintech, BNPL, and lending platforms.
Conclusion
It converts unstructured SMS data into meaningful financial insights that a business can use to understand customer financial behaviour, including income patterns, expenses, and repayment behaviour. Businesses can use this solution to streamline financial evaluation through AI-driven automation. Finpass SMS Analyser is a reliable solution for businesses that offers high accuracy and all the features businesses require in an SMS analysis solution, including AI-powered analysis, Instant Extraction, Smart Filtering, Pattern Recognition, Privacy First, Transaction amount extraction, Duplicate Detection, etc.
FAQs
What type of SMS messages does an SMS Analyser process?
It processes transactional SMS messages sent by banks, UPI apps, digital Wallets, and financial institutions.
Is SMS Analysis safe for the customer?
Yes, the SMS analysis process is safe as user consent is obtained before processing SMS data and follows the encryption and privacy guidelines.
Does SMS Analyser provide accurate information?
Yes, SMS Analyser uses AI Analysis and smart algorithms that ensure accuracy.
Is there any AI SMS Analysis solution?
Yes, Finpass offers an AI SMS analysis solution.
Can SMS analysis detect loan obligations?
Yes, Finpass SMS Analyser identifies loan-related messages such as EMI deductions, repayment reminders, and credit alerts.