A Complete Guide to Intelligent Document Processing in Banking in 2024
There is a lot of buzz about artificial intelligence (AI) globally, and certainly, this technology deserves every bit of the attention it is getting. There has always been a demand to make common services more personalized for customers, and Artificial Intelligence is helping us in achieving this dream.
It is why more and more industries are switching to AI solutions to revamp their services. Banking is one sector that is benefiting from the opportunities presented by artificial intelligence, like Intelligent Document Processing for banking, on a large scale.
Let’s see how!
Understanding Intelligent Document Processing (IDP) in Banking Sector
Let’s discuss what is intelligent document processing in a banking. How IDP is transforming bank operations? And what are the challenges?
What is Intelligent Document Processing for banks? –
Automating the process of manual data extraction from unstructured documents and presenting it in a systematic format is known as Intelligent Document Processing.
Unstructured documents could be anything like images, PDFs, and other digital & physical documents. IDP minimizes the work burden, nullifies the errors, and improves document processing efficiency.
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Intelligent Document Processing (IDP) Functioning
No prizes for guessing which system of document processing for banking is better!
In a nutshell, the second type of processing is what we call Intelligent Document Processing. The biggest complaint that people have with banking processes is that they take a lot of time to get completed.
With Intelligent Document Processing, AI technology helps in contextually identifying specific data points instead of depending on their positions in every document and then overcoming the challenges of data handling by converting unstructured data into actionable insights.
This way, banks are slowly replacing their old time-consuming methods, thereby providing a quick banking experience to customers.
Salient Features of Intelligent Document Processing (IDP) in Banks:
- Automatically segregates banking data present in different document types and various formats within each document type.
- Quick entry of the classified data on the bank’s portals.
- Saves time and money that goes into manual document processing.
- Lesser chances of errors as processing becomes automated.
- Easy to integrate with existing data processing platforms.
Current Uses of Intelligent Document Processing (IDP)
- IDP is currently being used by the top banks of the world to process forms meant for Savings accounts, Current accounts, Term deposit accounts, Demat accounts, etc.
- The Know Your Customer (KYC) process becomes much faster with IDP.
- Moreover, the processing time of other data-dependent tasks like loan requests can also be reduced drastically with the help of Intelligent Document Processing.
The Challenge Of Intelligent Document Processing (IDP) in Banking
Documents are the most integral part of the banking system and influence the daily workflow in a great way. At present, a large chunk of this data is stored in emails, online forms, PDFs, scanned images and several other digital formats. Using this unstructured data is a big challenge for any bank.
There are two possibilities regarding how banks can process this data to keep their operations running smoothly.
- Firstly, there can be employees who will go through the entire data, classify it uniformly, and then enter it manually on the separate portals created by the bank.
- The second option is a digital system that interprets relevant data from the documents that come to the bank irrespective of their formats, then automatically lifts the information and finally feeds it to the existing portals/ systems while maintaining uniformity. In short, using IDP software for baking practices.
Benefits of Intelligent Document Processing for Banking and Financial Services
Intelligent Document Processing helps banks improve overall customer service, streamline document processes, and reduce manual efforts. Here are some of the top benefits of IDP for banks and financial institutions.
Intelligent Optical Character Recognition (OCR) for Bank Data
An offset of artificial intelligence technology that is transforming the banking sector these days is OCR-based document scanning. Bank owners now know the importance of intelligent document processing in the banking sector.
Optical Character Recognition is a modern technology that turns images of text (even if handwritten) into machine-readable layouts. For example, images of invoices or bank statements can be turned into machine-readable text data.
A big problem in the banking system today is that while a large chunk of customer data is obtained on paper, ultimately it has to be fed on online portals/ systems created by each bank.
Therefore, to update data on these portals, employees have to type the information written on paper and then upload it to the portals. Practically speaking, it is a highly unreliable method, associated with high employee expense frauds, etc., and takes days to complete.
Can AI Revolutionise the Banking Sector Forever?
Integration of technology and innovation has to be at the core of banking operations. The banking sector has huge challenges in front of it when it comes to data management.
Effectively managing secondary problems associated with data mismanagement like employee expense fraud, non-compliance due to human errors or slow processing speed, etc. is becoming difficult with traditional methodologies.
Choosing IDP integrated data extraction tools and software, based on artificial intelligence, will allow banks to unlock the potential of their otherwise redundant data. The ultimate benefit of this automation will be for customers, who can get their job done quickly and more efficiently.
How KlearStack Can Help in Improving the Banking Sector?
KlearStack provides high-utility automation tools that utilize emerging technologies like Machine Learning, Artificial intelligence, Natural Language Processing, etc.
Our integrated AI-powered software solutions help in structuring your data within seconds. It has self-learning abilities that allow it to interpret the data irrespective of its placement and format while scanning.
Simple OCR software does not comprehend the data that it scans, it just aims to convert it into digitally usable forms, not accounting for any errors whatsoever.
Eventually, this improved understanding of the data by the software helps eliminate the need for manual error detection or correction.
Additionally, by using Machine Learning models, KlearStack’s OCR-based document scanning is complemented by the right placement of the converted data in the relevant fields.
KlearStack is proving to be a game-changer in the banking sector. Bulk invoice processing with high network and database security makes it the most practical data extraction software.
Banks can utilize our solutions to expedite activities like loan processing and reduce the dependence on manual data handling very significantly.
Therefore, with Adaptive Machine Learning algorithms and Artificial Intelligence, KlearStack brings an ocean of opportunities within your reach. Developed by experts with decades of experience in this domain, KlearStack provides large-scale automation, with high reliability, and lower costs.
You can get started with a free Klearstack demo.
Conclusion –
From the above discussion, it is clear that the banking sector is growing very rapidly and the need for Intelligent Document Processing (IDP) in banking is also increasing.
With the proper data management and processing capabilities, banks can significantly improve their services. This will help both banks as well as other people as well.
