As a financial institution, such as a bank or insurance company, the daily processing of a substantial volume of documents and data is a fundamental aspect of your operations. Managing diverse document types, including identity proofs, invoices, policies, and claims, is a routine part of your workflow. The challenge lies in handling documents originating from various sources, arriving in different formats, and often presented in multiple languages.
The necessity arises to extract, validate, and update data from these documents within your internal systems and databases, such as Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and accounting platforms. Safeguarding this data is of paramount importance, necessitating measures to prevent unauthorized access, leakage, or fraudulent activities. Compliance with data protection laws and regulations, such as GDPR and CCPA, is imperative in this context.
Moreover, adherence to regulatory requirements and standards is essential. Providing comprehensive audit trails and evidence to substantiate compliance and audit claims becomes a crucial part of your operational framework. Striking a balance between efficient document processing and robust data protection measures is key to ensuring the seamless functioning of your financial institution.
When banks and insurance companies switch to Intelligent Document Processing, every stage of their document processing is automated.
IDP can do the following things for you:
- Capture your documents from various sources and digitize them in a centralized repository.
- Extract the relevant data from your documents, like customer name, address, date of birth, account number, policy number, and more, and transform them into a structured format.
- Validate the data against predefined rules and criteria, like checking the validity of the identity proof, the eligibility of the customer, the accuracy of the invoice, and more, and flag any errors or exceptions.
- Classify and route the documents and data to the appropriate destinations, based on the content and context, like sending the invoice to the accounting department, the policy to the customer, the claim to the adjuster, and more.
- Protect the data from unauthorized access, leakage, or fraud, by applying encryption, masking, redaction, watermarking, or other data protection measures, based on the predefined rules and policies.
With IDP, you can automate your document workflows with AI, and save time, money, and effort. IDP can help you improve your data quality and accuracy, enhance your data security and privacy, comply with the regulatory requirements and standards, and prepare for the audits and inspections.
Try our Parashift IDP Platform and see the difference.
Which challenges are being met with Intelligent Document Processing in the banking and Insurance industry?
If you work in a bank or an insurance company, you know how hard it is to comply with the rules and regulations that apply to your document workflows.
Discover for each challenge how IDP overcome it:
Challenge n°1: Budget constraints
Compliance and audit activities require adequate resources and investments, especially in data and technology solutions, to cope with the increasing complexity and scope of regulatory requirements. However, many banks and insurances are facing shrinking margins and growing cost pressures, which limit their ability to allocate sufficient funds to compliance and audit functions.
IDP overcomes the challenge n°1: Cost reduction and efficiency improvement
IDP can reduce the need for manual data entry, validation, and reconciliation, which can save time, money, and resources. IDP can also improve the efficiency and speed of data processing, as it can handle large volumes of documents and data sources with high accuracy and consistency.
Challenge n°2: Multiple audits
Banks and insurances are subject to various audits from different regulators, internal auditors, external auditors, and other stakeholders. These audits often have different objectives, scopes, standards, and timelines, which create challenges for coordination, consistency, and efficiency . Moreover, multiple audits can increase the risk of errors, inconsistencies, and duplication of work.
IDP overcomes the challenge n°2: Single source of truth and audit trail
IDP can create a single source of truth for compliance and audit data, as it can integrate and consolidate data from multiple documents and systems. IDP can also provide a complete audit trail of data extraction, transformation, and validation, which can enhance the transparency, traceability, and accountability of data.
Challenge n°3: Data quality and security
Compliance and audit processes rely heavily on the quality and security of data. However, many banks and insurances have legacy systems, siloed data sources, and manual data entry processes, which compromise the accuracy, completeness, timeliness, and reliability of data . Additionally, data security is a major concern, as compliance and audit data often contain sensitive and confidential information that needs to be protected from unauthorized access, modification, or leakage .
IDP overcomes the challenges n°3: Data quality and security enhancement
IDP can improve the quality and security of data, as it can apply advanced technologies such as artificial intelligence, machine learning, optical character recognition, and natural language processing to classify, categorize, extract, and validate data. IDP can also ensure that data is stored and processed in a secure and compliant manner, using encryption, authentication, and authorization mechanisms.
Challenge n°4: Complex and dynamic regulations
The regulatory environment for banks and insurances is constantly evolving and becoming more complex and demanding. Compliance and audit functions need to keep up with the changes and ensure that they comply with the latest rules and standards. However, this can be challenging, as regulations often vary across jurisdictions, products, and services, and may have different interpretations and implications .
IDP overcomes the challenge n°4: Regulatory compliance and agility
IDP can help compliance and audit functions comply with the current and future regulatory requirements, as it can adapt to different document layouts, formats, and languages, and extract relevant data based on predefined rules and criteria. IDP can also help compliance and audit functions respond to regulatory changes and requests faster and more effectively, as it can update and modify data extraction and validation processes quickly and easily.
Using IDP with sensitive data – is it secure?
We understand that banks and insurance companies may have some concerns and worries about using IDP, especially when it comes to the sensitive data that they deal with. You may wonder:
Is IDP secure and reliable? Is IDP compliant and auditable? Is IDP easy and convenient?
These are valid and reasonable concerns and worries, but they can be overcome with the right IDP solution and the right implementation strategy.
You need to select an IDP solution that:
- has the features and functionalities that ensure the security and reliability of your data and workflows.
- supports flexible deployment options, such as cloud, that suit your availability, scalability, and security needs and preferences.
- offers high-quality and reliable performance, and has a proven track record of success and satisfaction among its customers and users.
How to implement IDP in your Bank or Insurance company
If you are interested in implementing IDP, here are the 3 steps that you can follow:
Step 1: Define your business goals and requirements:
- You need to identify what are the problems that you want to solve, what are the benefits that you want to achieve, and how many documents you want to process.
Step 2: Evaluate and select the best IDP solution:
- You need to compare and contrast different IDP solutions that are available in the market, and choose the one that best suits your needs and preferences.
- You need to consider the features, functionalities, and performance of the IDP solutions, and how they match your business goals and requirements.
- You need to consider the deployment options, integration capabilities, and customization possibilities of the IDP solutions, and how they fit your infrastructure and resources.
- You need to consider the cost, quality, and reliability of the IDP solutions, and how they align with your budget and expectations.
This graphic could help you to make a choice
Parashift Platform has been listed among the Top IDP solutions in 2023 in the HFS IDP Report 2023.
- Step 3: Implement and test the IDP solution
- You need to install and configure the IDP solution in your business, and connect it with your document sources, destinations, systems, and platforms.
- You need to test the IDP solution on your documents and data, and fine-tune the parameters and settings to optimize the results.
- You need to monitor and evaluate the performance and outcomes of the IDP solution, and measure the impact and benefits that it brings to your business.
Our Parashift experts are here to help you with this step.
Conclusion
Intelligent Document Processing (IDP) is a technology that can help you achieve compliance and audit excellence in the banking and insurance industry. With IDP, you can automate, streamline, and improve your document workflows, and enhance your data quality and security. IDP also enables you to comply with the regulations and standards that govern your industry and jurisdiction, and provide the evidence and documentation that support your claims. Moreover, IDP helps you integrate and optimize your business processes, and gain insights and intelligence that can help you improve your business performance and customer satisfaction.
Convinced and ready to try IDP? Test the Parashift Platform, which is particularly suited to banks and insurance companies handling sensitive data.
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