Credit Memo Automation
Credit memo automation, drafted by AI.
The memo your underwriter would have written. Drafted from the borrower file in minutes. With citations to every source document.
Kita drafts the credit memo so your underwriter can spend their time on judgment, not on assembly. The output cites every source document.
Definition
What is credit memo automation?
Credit memo automation is the use of AI to draft the written credit assessment that an underwriter submits to a credit committee. It reads the borrower file, spreads the financials, structures the narrative across capacity, character, collateral, and conditions, and outputs a draft memo with citations. The underwriter reviews, edits, and signs.
How it works
01
Read the full file
Every document in the borrower file: financials, tax returns, IDs, business registrations, bank statements, mobile-money records. The memo draws from the complete picture.
02
Structure to your policy
Memo template, ratio bands, narrative structure, and qualitative emphasis calibrated to the lender. Your policy is the input. Kita writes to fit it.
03
Cite every claim
Every number and every qualitative observation in the memo cites the source document and the line within it. The auditor can trace any claim back to its origin.
Comparison
Credit memo automation vs. blank-doc memo writing.
| Aspect | Manual memo writing | Kita credit memo automation |
|---|---|---|
| Hours per memo | Two to six hours, depending on file | Minutes for the draft; analyst edits |
| Source data | Copy from prior deals, re-typed numbers | Spread directly from source documents |
| Consistency across analysts | Varies in tone, structure, depth | Same template, same rigor, every memo |
| Citations | Implicit, scattered across notes | Every claim cited to a source line |
| Audit defensibility | Depends on analyst notes | Structured, citable, reproducible |
| Final signoff | Analyst then underwriter | Analyst edits the draft; underwriter signs |
Who it's for
Built for the three lender scenarios we serve.
SME credit committees
Memo-heavy decisioning.
SME and trade-finance lenders take memos to committee. Drafting from the source file in minutes means analysts arrive prepared and committees decide faster.
CDFI and SBA
Defensible memos at scale.
CDFI and SBA lenders need memos that hold up to regulator and funder scrutiny. Cited, structured drafts make the audit trail straightforward.
Microfinance
Light-touch memos for high volume.
Even at micro-loan economics, a short memo with the key signals beats a checklist. Automated drafts make memo-style underwriting affordable.
The product
Kita AI Underwriter
The AI Underwriter is the layer that drafts credit memos. It pairs with Capture for document parsing and produces a memo calibrated to your lender policy. Your underwriter edits and signs.
See the AI UnderwriterFAQ
Common questions
Does the AI write the final memo?
No. The AI drafts the memo. The human analyst reviews, edits, and the underwriter signs. The output is a structured draft with citations, ready for editing. The decision and the final memo remain with your team.
Can the memo template match our existing format?
Yes. Memo structure, section headings, narrative tone, ratio bands, and qualitative emphasis are all configurable per lender. Most lenders provide their existing template and Kita calibrates to it.
How does citation work?
Every numeric claim in the memo links to the source document and line. Every qualitative observation links to the specific passage that supports it. An auditor or regulator can trace any claim back to its origin.
What financial spreading is included?
Three years of audited financial statements normalized into one schema. Tax-return reconciliation. Bank-statement cash-flow analysis. Mobile-money cash-flow analysis. The spread is part of the memo and cited in the narrative.
How does it handle qualitative reads?
The AI reads the narrative in audited financials, the going-concern opinion, management discussion, and similar qualitative sources. It surfaces the story behind the numbers, calibrated to what your policy asks the memo to cover.
Is the output safe for regulatory review?
Yes. Structured output with citations is more defensible than free-text analyst notes. The human underwriter still signs. Regulators see a memo that is both readable and traceable.
Free your underwriters to do the judgment, not the assembly.
Talk to the team about credit memo automation calibrated to your policy.