How Trade Shield Uses Bank Statements
5 min read 5 questions answered
Bank statements are a key part of Trade Shield's credit risk assessment process. This article explains why we use them, how our Bank Statement Analysis (BSA) tool works, and how this approach compares to traditional bank codes.
In this article
Why does Trade Shield use bank statements?
In 2021, South African banks began changing how third parties could access bank codes, following the Protection of Personal Information Act (POPIA).
| Bank | Status | Timeline |
|---|---|---|
| FNB | No longer provides bank codes to third parties | July 2021 |
| ABSA | No longer provides bank codes to third parties | Shortly after FNB |
| Standard Bank & Nedbank | Codes available with explicit director consent only | Ongoing |
This change prompted Trade Shield to develop an alternative approach that does not rely on bank codes at all.
What is the Bank Statement Analysis (BSA) tool?
Trade Shield created the Bank Statement Analysis (BSA) tool to extract the same core data that a traditional bank code would provide — without needing the bank's direct involvement.
ⓘ Tip: TruID adds an additional layer of security and verification, making the BSA tool more robust than a standard bank code check.
How is this different from traditional bank codes?
| Feature | Traditional Bank Code | Trade Shield BSA |
|---|---|---|
| Activity window | Last 7 days | Last 30 days |
| Credit framework | Basic account check | 7 Cs of Credit applied |
| Turnover estimation | Not included | 3-month turnover calculation |
ⓘ Note: The 7 Cs of Credit framework (Character, Capacity, Capital, Conditions, Collateral, Cash Flow, Compliance) gives a far more comprehensive picture of affordability and risk than a basic bank code check.
Why do you require 3 months of statements in PDF format?
We specifically ask for system-generated PDFs directly from the bank — not scanned or manually altered documents. Here is why:
Harder to manipulate. System-generated PDFs contain embedded metadata and formatting that makes tampering detectable, ensuring document authenticity.
Establishes a clear financial pattern. Three months of data is enough to identify consistent income, recurring expenses, and an estimated business turnover.
⚠ Note: Scanned, photographed, or manually altered bank statements cannot be accepted. Always request the original PDF export directly from your bank's online banking portal.
Do bank statements replace financial statements?
No — they work together. Each data source plays a distinct role in the credit assessment process:
- Real-time affordability view
- Turnover estimation
- Income & expense pattern analysis
- In-depth affordability scoring
- Processed via Moody's integration
- Formal credit risk assessment
ⓘ Key Insight: Together, bank statements and financial statements provide a multi-layered view of a customer's financial health — making Trade Shield's credit risk assessment more accurate and reliable than any single data source alone.
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