New Delhi [India], December 15 (ANI/ThePRTree): The Ministry of MSME’s 2021 annual report stated that the Indian economy today is largely driven by small and medium-sized businesses, which generate 30% of the country’s GDP and provide jobs to over 110 million people.
While the pandemic has significantly affected all sectors across the nation, it has sparked a shift towards digital transformation in the MSMEs to ensure business continuity and expansion.
Clearly, MSMEs are on the rise and with the influx of rapid digitisation and automation in the sector, every MSME entity is opting for QR code to send and receive payments, setting up online payment gateways, marking their presence in the eCommerce world, opening current accounts to support digital transactions and establishing a more comprehensive digital ecosystem around their operations.
As MSMEs increase their digital footprint, they are becoming more visible to banks and lenders but one of their biggest challenges in getting access to a fair share of credit is the lack of credible information available around them. This hinders the ability of financial institutions to service MSMEs and new to credit customers, inhibiting financial inclusion.
Parallelly, there is a significant rise in various frauds in the corporate sector and one of the major reasons for it is either falsification of information or diversion of funds to undisclosed related parties. Traditionally, the BFSI industry has relied on self – declarations made by their customers for the identification of related parties, resulting in money laundering through undeclared associations and entities, clearly, there was no credible independent source to validate that information in real-time.
That’s where KScan, the most comprehensive due diligence platform from Karza Technologies comes into play. KScan generates a point-in-time report on any business registered in the country, including details around shareholding, management, financials, credit ratings, statutory registrations, red flags, litigation and negative news. It integrates 900+ disparate sources and offers credible intelligence on more than 25 million businesses who are pre-profiled and proactively screened through 200+ negative alerts across categories including regulatory, statutory, banking defaults, credit ratings and auditor remarks. The platform features a one-of-a-kind related party network graph allowing an easy view of relationships (including hidden/ indirect relationships) at various levels viz. entity types, relation basis and severity of risks. Kscan processes more than 2 million records per hour, utilizing state-of-the-art Big Data Technologies and proprietary AI algorithms to analyze data, identify fraudulent patterns, and deliver results within milliseconds.
To top it all off, Karza Technologies is building a layer of proprietary algorithms on the KScan platform to proactively detect patterns of Shell Entities, Hawala Entities and Benami Entities. This feature will enable banks to instantly assess the credibility of their customers.
Omkar Shirhatti, Co-Founder, CEO, Karza Technologies said “With KScan we aim to provide financial institutions, lenders, investors, or any entity who is putting money on the line to get credible intelligence of any business that they’re dealing with across the country.” He further added, “Kscan gives entities access to credible data points that can be utilised for better targeting and developing sharper go-to-market strategies, rapid onboarding and underwriting while ensuring thorough adherence to risk and compliances under the legal framework.”
KScan’s consent driven GST and ITR feature complements their diligence suite well, and ensure up-to-date monitoring of a business’s financials, as well as provides the means to conduct financial diligence on smaller entities that may not be required to publicly disclose their returns. This is an ideal feature to expand the credit base of lenders, thereby, significantly improving credit accessibility to MSME’s. Additionally, the platform’s Litigation BI suite helps institutions to identify and track all cases filed by or against a company across 3500+ courts and tribunals in India.
Gaurav Samdaria, Co-Founder, CBO, Karza Technologies highlighted the journey to build KScan stating “It started by understanding and automating each activity of financial institutions, One API at a time and today, 200+ APIs later, KScan is a culmination of all the blocks built and researched over the past 6 years, that thoroughly automates and delivers credible intelligence across every function of a Financial Institution. All achieved with >92%+ funded by Client Revenues with <0.5Mn INR in marketing costs!”
With Karza Technologies KScan platform, banks and financial institutions can have access to such a wealth of reliable intelligence data, it will be easier for them to provide credit and other financial products to MSMEs, resulting in a significant increase in the country’s financial inclusion rate.
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