Banking & FSP blog series: automated reading of mortgage documents with IDP – 04 salary statements

In this blog series, we will focus on typical document types from the mortgage dossier like the salary statements. With Intelligent Document Processing (IDP), banks and financial service providers can automatically read out all relevant data and thus massively accelerate their financing and mortgage process & reduce costs.

In order for banks and financial service providers to know whether the mortgage is affordable for the applicant or not, a mortgage application is only complete with last year’s salary statement and the salary statements of the last three months. While automation solutions are not a problem for structured salary statements, manual intervention is usually unavoidable for semi-structured salary statements. Delays in the processing of financing or mortgage dossiers are therefore inevitable.

In order to speed up loan decisions, but also to differentiate oneself as a bank and financial service provider from the competition through service quality, smooth processes are central to this. Instead of configuring half-bad templates with a legacy OCR solution, banks and financial service providers can instead use Intelligent Document Processing (IDP) to activate document types from the mortgage dossier, such as salary statements, with one click and process them automatically.

Salary statements in different formats

While the salary statement provides transparency about the gross salary of the applicant of the last year, those documents serve to confirm incoming payments over the last three months.

They then also comes in a structured format. The payroll statements, on the other hand, do not: these vary depending on the employer. Not strongly in content, but certainly in format. Traditional OCR solutions cannot handle the variation, which inevitably results in manual data entry and processing by employees. Slow processing of loan application documents not only leads to dissatisfaction on the part of the customer, but also results in missed opportunities and significant reduction in operational efficiency on the part of the bank or financial services provider.

In part 03 of the ‘Banking & Financial Services blog series‘, we addressed the automatic processing of land register extracts with IDP.

With IDP: Banks & Financial Service Providers read salary statements automatically

Integrated easily into the existing IT architecture (in record time, of course), Intelligent Document Processing (IDP) has become indispensable for banks and financial service providers for their document processing. And not only for semi-structured payrolls, but even for fully structured: IDP also performs miles better than a legacy OCR solution.

As seen in the sample photos from the cloud OCR software platform, banks and financial service providers can use IDP to automatically capture and extract all relevant data from payrolls and salary statements and use the structured data to process mortgage dossiers faster.

In the case of payrolls and salary statements, the following data, among others, is automatically extracted:

– Monthly salary statements:

  • Employee: Address of the employee.
  • Line items: Document date, statement period, salary net, salary gross, currency, expense amount, personnel number, AHV number.
  • Bank details: Bank name, IBAN number.

– Annual salary statements:

  • Employer: Company, address.
  • Line items: AHV number, statement year, statement period (from), statement period (to), salary net, salary gross, expense amount

No-Code App for customization of document types

If additional requirements are needed for a document from the mortgage dossier, banks and financial service providers can easily make their own adjustments to the document type using the no-code app. Or even create new, individual document types and use the data immediately in their loan application or CRM.

In part 05 of the ‘Banking & FSP blog series’ we cover the automated processing of tax returns with IDP.

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