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Credit

Underwriting

Also known as: Suscripción crediticia, Análisis de crédito

Definition

Underwriting is the process of evaluating an applicant's ability and credit risk before extending a loan. It combines analysis of income, expenses, credit history and financial behavior.

LATAM context

LATAM lending fintechs underwrite by analyzing an applicant's bank statements: recurring income, spending patterns, payments to other lenders, real transfers versus internal ones. It's the single most important decision in the credit model.

Concrete example

A fintech evaluates a $30,000 MXN loan application. It processes 6 months of the applicant's statements with finO$, identifies $35,000 MXN of net monthly income, a 22% debt-to-income ratio, and approves.

How it shows up on your bank statement

Bank statements are one of the main data sources for the analysis. What gets examined isn't the point-in-time balance but behavior across several months: income regularity, average balance, days in the red, returned payments for insufficient funds, and how concentrated revenue is among a handful of counterparties.

How does finO$ handle this?

finO$ is key to underwriting when the applicant hands over PDFs or when Open Finance doesn't apply. It detects internal transfers, other lenders, and true recurring income. See our lending use case.

Need to convert bank statements into structured data?

Just one file? Use the free converter to convert your bank statement to Excel.

Frequently asked questions about Underwriting

How many months of statements are typically requested?

Between three and twelve, depending on the product and the amount. A longer window reveals seasonality and catches unusual months; a shorter one speeds up the decision but misses annual behavior.

What red flags do lenders look for in a bank statement?

Round, irregular deposits that don't match declared activity, balances that empty out right after every deposit, recurring insufficient-funds charges, and circular transfers between accounts held by the same person.