Intelligent Document Processing (IDP) and its applicability in the current world are increasing as more and more sectors started leveraging the technology. IDP technology leverages optical character recognition (OCR), artificial intelligence (AI), and machine learning (ML) to extract data through document processing. Enterprises adopt IDP technology to reduce the operational cost associated with manual document processing and enhance organizational efficiency.
The banking and insurance industry is one of the biggest adopters of intelligent document processing technology in the global market. Most of the banking organizations were leveraging traditional methods in document processing and as part of digitization, they have started shifting to IDP technology. The major reasons for the replacement of traditional methods with IDP solutions are to save time and also to deliver a better customer experience.
Manual methods of document processing is a time consuming process which results in increasing operational cost while dealing with huge volume of data. Banks usually deal with different types of documents including pictures, signatures, online forms, account opening forms, statements, and other pdf files. So, adoption of IDP technology can be seen as an important part of document processing in banking sector.
Importance of IDP in the Banking Sector
The majority of the data stored in banks are not categorized and unstructured in various formats such as emails, online forms, images for bank documents, etc. The classification of these data in a manual way is not at all possible and intelligent document processing plays a crucial role here. In the era of big data, organizations including banks, make use of these data to generate revenue. Banks and financial organizations can use IDP technology to retrieve important customer data from various sources such as bank accounts, data provided by the customers, and bank transactions.
The storage of large data volume in a manual method is not an easy process, with automation, these mundane tasks can be resolved. The data collected from various sources are stored by banks to benefit their customers with a better experience. Banks and financial organizations can make use of these data for analysis purpose that helps in analyzing trends in the economy which will benefit them at the time of policy making.
Another way in which Intelligent document processing helps banking institutions is through fraud detection, where they can detect and prevent fraudsters from illegal financial activities. The storage of these data will enable banks to store a genuine database, and this will eventually help in restricting the fraudulent transaction. IDP can recognize trends in transaction behavior and decide if a transaction represents a customer’s regular pattern of activity in real-time. This allows users to halt a potentially fraudulent transaction and flag it for further investigation.
The employment of intelligent document processing in banking will also help banks in enhancing their efficiency and productivity. More automation will reduce the chance of error as the manual intervention is less and enables banks to gain greater accuracy, speed, reliability, and scalability in document processing.
IDP Applications in Banking Activities
- Online Forms Processing – Several activities like account opening, account closing, cash withdrawal, etc., take place in the bank and clients require to fill out the form for all these processes. The probability of error while filling the paper-based form is high and it is also a time-consuming method. This process can be digitalized by leveraging the IDP capabilities, enabling the customers to access through online portals. This will simplify the process by converting all the data into text, tables and graph formats where machines can detect and process it for further business operations.
- Loan Application Process – IDP process helps banks to save their customer’s time by quickening the loan application process which consists of intensive and time-consuming tasks.
- Mortgage Document Processing – Different types of documents are required for banks to process mortgages when an individual or an organization approaches them. These include bank statements, id proofs, payslips, etc.., These documents can be combined to develop a database to extract and validate data which can help organization to track their mortgages.
Apart from these, IDP also helps banking institutions to assist in the development of research reports that will help in decision making by extracting the annual reports. Banks can also integrate the customer data into the core banking system using IDP as well as develop an automated closure system by integrating robotic process automation (RPA).
In the era of technological advancement, data management is an issue for the banking sector where they are lagging behind with large dependence on conventional technologies. Technology and integration are vital for banking sectors in the day-to-day operations for enhancing efficiency and reduce errors. The IDP will enable banks to realize the potentiality of the data which is stored in their database. IDP can revolutionize the banking sector by effectively managing data and benefits organizations by delivering accuracy and efficiency. This will not only benefits the financial organization but also benefits the customers eventually.