As an organization in the financial services and insurance industry, you know: to stay ahead of the competition, you need to leverage the latest technologies and improve the way you do business. And when it comes to increasing efficiency and productivity, few technologies are as powerful as artificial intelligence (AI). More specifically, it’s next-generation AI tools like Intelligent Document Processing (IDP) that will transform your financial services for good.
In this article, we explore how Intelligent Document Processing can help your financial services organization from data extraction to decision making.
In this article, we provide answers to the following points:
- What the status quo of document processing is across many FSI organizations and the issues it presents
- Key questions you should ask yourself as a decision maker when considering integrating IDP
- What the implications of Intelligent Document Processing are for data extraction
- What use cases you can cover with it
- Why IDP has the potential to improve your decision making
The status quo of document processing in the financial services and insurance industry
While the financial services and insurance industry is in the midst of digitization, many of the processes are still massively limited. In part, this is because as a financial institution, you need to process more documents today than ever before. In addition, at best, traditional automation solutions that have already been implemented usually fall far short of expectations. Processing unstructured data from a large variation of documents is not feasible with traditional automation solutions. This leads to the need for your employees to continue to manually review, capture and process documents. This not only has a negative impact on costs, but also on the customer experience.
Key questions you ask yourself as a decision maker when evaluating IDP solutions
So the status quo paints a clear picture: to truly automate your document processing, you need an intelligent system. That’s what you get with a modern Intelligent Document Processing (IDP) solution. Thanks to advanced technologies based on artificial intelligence, this system brings the necessary power to your FSI-specific documents.
The main objective is to evaluate an IDP solution that will enable you, as a bank or financial services provider, to make document and forms processing easier and more efficient. This includes classification, data extraction, structuring and storage of data.
However, such IDP solutions can vary widely in terms of capabilities and features. Therefore, it makes sense for you as a decision maker to ask yourself some key questions when researching the right solution, such as:
- What are the specific problems we want to address with IDP? These include inefficiencies in document-heavy processes, errors or inaccuracies in data extraction. Likewise, a lack of visibility into important data.
- How can IDP integrate with our existing systems and processes? It is critical that the solution works seamlessly with your current workflows and technologies. You also need to be able to easily and quickly scale the IDP solution when needed.
- What level of customization and configuration is required for our specific needs? IDP solutions can vary widely in terms of capabilities and features. Therefore, it is important to work with a vendor that can customize the solution to meet your specific needs. A huge plus is a vendor whose IDP platform is industry agnostic and requires little configuration.
- What kind of data insights can we expect from IDP? This could include identifying trends in customer behavior, fraud detection, but also real-time insights on KPIs.
- How will IDP impact our decision-making processes? By automating data extraction and providing valuable insights, IDP helps support decision-making across your organization. It’s important to consider how this impacts your current decision-making processes and workflows. Furthermore, it is especially important to know how you can best use the insights provided to improve business outcomes.
With IDP: 5x faster turnaround times and feedback to your customers.
The importance of IDP in data extraction
Data extraction is of essential importance to your FSI organization. The extraction of meaningful information for your business processes stands or falls with it. You depend on data from a wide variety of documents to optimize your business processes, improve customer satisfaction, and reduce costs. The importance of accurate data extraction for your business in the financial services and insurance industry is also evident in the following factors:
- Risk assessment: You rely heavily on data when assessing risk. Powerful data extraction through Intelligent Document Processing ensures that you can make informed decisions when reviewing policies or approving loans.
- Customer experience: If you can accurately and quickly extract relevant data from documents provided by customers, then you are also able to make better decisions faster. This in turn benefits the customer in the form of faster spoken credit, for example.
- Fraud detection: Fraud is on the rise in the financial services and insurance industry and poses an immense challenge. Accurate data extraction helps detect fraud. Suspicious patterns and anomalies in financial data are flagged for your employees to review.
- Compliance: As a financial services provider, you are highly regulated and must comply with numerous laws and regulations. Accurate data extraction with Intelligent Document Processing is an immense advantage for regulatory reporting and compliance.
“Parashift’s technology enables organizations to reduce their document processing costs by more than 80% while solving new, previously “impossible” use-cases easily and quickly. And all this without replacing existing business applications.” – Fabian Seimer, Head Information Management, Inacta AG
FSI Use Cases you can automate with Intelligent Document Processing
Once you have gained insights from the data, the next step is to turn those insights into action. With Intelligent Document Processing, the necessary document data is available for review faster, allowing you to make better decisions in a timely manner. With Parashift IDP, you automate increasingly complex financial services processes.
To do this, the Parashift IDP solution leverages technologies such as Deep Learning and Natural Language Processing. This allows you to interpret highly variable documents with a high degree of accuracy. Among these documents are contracts, financial statements, credit reports, correspondence, and handwritten documents. Previous types of document processing solutions could not handle such documents.
Use the Parashift IDP platform to automate FSI use cases such as:
Finance and mortgage process: You receive several thousand financing and mortgage requests with hundreds of document types and hundreds of thousands of pages every year through various channels. The challenges here lie not only in the enormous volume and variation of documents. It’s also the fact that your employees have problems with poor document quality or receiving them in batches. With the integration of Intelligent Document Processing, you can massively reduce both turnaround times and costs. The intelligent system automatically classifies hundreds of different document types. Finally, IDP automatically extracts all the relevant data you need to review an item and verify the loan applicant. So with Parashift’s Intelligent Document Processing platform, you capture and extract all relevant, unstructured data from salary statements and pay stubs, pension fund statements, land registry statements, etc. The data required for your employees is passed on to downstream systems in a structured form.
Claims Processing: In Claims Processing, the majority of documents come in unstructured form. Insurance-specific document types include pharmacy receipts, optician bills, and gym bills. Instead of slow process turnaround times due to manual claims processing by your employees, which quickly ends in dissatisfied customers, you do things differently. Through automated classification and extraction with IDP, data is prepared for further processing using business logic. This benefits both you and your customers: From the time the customer submits a claim to the time you bill for benefits, the significantly reduced turnaround times make an equally positive experience a reality.
Onboarding: For onboarding new customers, you need to extract data from ID documents to verify individuals. Instead of your employees doing this in tedious manual processes, IDP takes care of it. Machine learning algorithms classify documents by type and check them for completeness and data consistency. Then, relevant data is extracted and the information is checked against a database to verify accuracy. If fraud is suspected, the IDP solution flags this for your employees.
Additional, individual capabilities: Further use cases are possible in minutes thanks to the no-code app and the self-definition of new document types.
With IDP: 80% straight-through processing and more for specific business documents and processes.
IDP has the potential to improve decision making
Intelligent Document Processing has a direct impact on your decision making and supports you:
Real-time insights: IDP provides you with real-time insights into key metrics such as customer behavior, market trends, and compliance issues. You can use this information to help you quickly adapt to changing market conditions and customer needs.
Increased accuracy and consistency: Intelligent Document Processing reduces errors in data extraction and improves consistency in decision making. This helps ensure that your decisions are based on accurate and up-to-date information. At the same time, you significantly reduce the risk of non-compliance or other errors.
Improved efficiency: IDP helps streamline decision-making processes by automating previously manual tasks such as data entry and analysis. This allows your staff to focus on more challenging and truly important tasks, and provide better customer service.
Data sources and cost savings: With IDP, you can finally capitalize on documents and use them as a critical data source. Moreover, with IDP, 50% cost savings becomes a reality after only 6 months of operation. Trend for significantly more is also there.
Better risk management: IDP helps identify potential risks and compliance issues in real time. This allows you to take proactive measures to mitigate these risks and avoid potential fines or legal issues.
Better customer experience: When you simplify, automate, and expedite the application for financing and mortgage loans or the processing of claims, you deliver an exceptional experience that builds customer loyalty. Differentiate yourself through excellent service quality, not just lower costs. So by automating with Intelligent Document Processing, you not only save time and money, but you can differentiate your products and services from the competition.
Parashift is committed to optimizing your financial services
Parashift’s mission is to help FSI companies like yours achieve your business goals. From data extraction to decision making, the Parashift IDP platform transforms your business operations, lowers costs and improves the customer experience.
Ready to take your business to the next level? Get in touch with us today.