Banking, Financial Services and Insurance

Benefits of Satellite Imagery for Financial Services

Earth Observation satellites, optical and RADAR - all weather, can capture data that traditional means cannot such as

  • Farm crop yields

  • Mapping of crops

  • Geo tagging farmland to specific farmers

  • Farm diversification

  • Planting cycles, and trends in production

  • Satellite data can guide ground data  and estimate yield at village level.  

  • Satellite data can reduce the transnational costs of reaching rural farmers and, ultimately, make finance more affordable for smallholder farmers.

  • Satellite imagery—in combination with demographics, financial, agronomic, geo-spatial, and psychometric data—provides sufficient detail on clients without an established credit history, to make lending decisions.

  • Post-loan support by utilizing satellite imagery to monitor the performance of loans through the cropping cycle

  • Space based data can reduce the cost, increase the credit approvals, and decrease turnaround time and non-performing loans.
     

With access to broad and reliable data - satellites, optical and RADAR , on factors like productivity, prices, and weather, financial institutions could forecast revenues, potential repayment deficits, timing of income

Banking Products

  • Loan Fraud Detection Product
  • Static Credit Risk Rating model
  • Dynamic Credit rate Monitoring Product
  • Loan Pricing and valuation Product
  • Loan Structuring Service
  • Agri-Loan portfolio Monitoring Application
  • Agricultural Loan Portfolio Stress Application

Insurance Products

  • Insurance Fraud Detection

  • Rain Index Insurance

  • Soil Moisture Index Insurance

  • Drought Index Insurance

  • Flood Index Insurance

  • Yield Index Insurance

  • Local Storm Related Insurances

Digital Finance

  • Mobile Lending

  • Mobile Payments

  • Mobile platform to sell Harvest and Agri Products

Agri Financial Risk Management

 

Credit Risk ( Planting Crops, raise product, harvesting, market delivery)

  • Repayment exposed to adverse weather, price volatility, diseases, land values

  • Absence of critical data for Credit Risk

Production Risk

  • Increased Production or harvesting costs due to fertilizer and transportation costs

  • Unfavorable climatic conditions like Soil Erosion, Flooding, Droughts

Market Volatility

  • Large price fluctuations due to weather, global changes in supply & demand

  • Ag Products could have local to global marketing

Interest Rate Risk

  • Borrowers maybe given loans at zero rates but lenders are exposed to funding risk

Liquidity Risk

  • Crop Losses or unfavorable market conditions could strain the liquidity

Operational Risk

  • Poor Documentation, lack of digitization of records

  • Robust Agri Lending and Risk Solutions not tailored for Small farm Agri sector

  • Financial Institutions often lack technology and personnel to address these issue