Approximately 80% of banking data is unstructured. This poses a challenge for banks to unlock the hidden data about customer insights. Furthermore, since banks are dealing with a massive amount of data, compliance issues and productivity achievement are also becoming their top concern. But one way to solve the problem is an implementation of Intelligence Document Processing (IDP) to process massive complex banking data and move forward with full automation. So why exactly do banks need to bank on IDP? Find out more details in the article below.
Opportunities are hidden in untapped data
According to recent research by Fintech Futures®, up to 80% of banking data is encrypted in an unstructured format, including online forms, images, signatures, blueprints, PDF documents, etc. This massive volume of data is invaluable to the bank because it contains vital customer information. By digging deeply into the data source, banks can capture customer insights to improve personalized products suitable for the customer’s needs. This also enhances the customer experience across channels and opens up new business opportunities for banks.
Unstructured data contains several hidden information about customers. Source: scnsoft.com
In addition, the trend of Open Banking with the opening of APIs and sharing of banking data to third parties is considered a potential business model, promoting data integrity and accessibility.
With the ability to read and understand data in context due to the support of AI, including Natural Language Processing (NLP), and Machine Learning (ML), IDP is a practical assistant for banks to take advantage of core data to collect and research customer insights. As a result, banks can build a complete ecosystem and provide comprehensive services tailored to customers’ demands.
- IDP can automatically collect customer information and integrate NL and ML to dig deep and extract valuable information such as behavior, consumption, habits, etc., from the data, providing a complete picture of customers.
- Automatically store and integrate customer data into the internal system, allowing the bank to use this data to develop strategies for improving products/services suitable for targeting users.
How IDP works. Source: taiger.com
Compliance issues are sometimes hard to achieve with the high document volumes
Banks have to comply with many regulations and go through a series of processes to check and authenticate numerous documents and papers. One of them is the Anti-Money Laundering (ALM) regulation, relating to the Know Your Customer (KYC) process, requiring banks to verify customer identity and monitor risks to limit fraud. However, as these processes are often performed manually, they tend to be time-consuming, error-prone, and inefficient.
The KYC process is usually done manually and requires numerous documents. Source: bayometric.com
The responsibility for compliance with ALM and KYC rests with the banks. However, fines and penalties for non-compliance can be imposed, causing financial losses for the businesses. According to a report from AI Business, more than $450 billion worth of penalties for non-compliance has been issued.
The implementation of IDP helps banks have a visual picture of their customers, thereby improving compliance with strict KYC and ALM regulations.
- IDP is capable of extracting relevant data from all kinds of documents, including birth certificates, social security cards, driver’s licenses, and passports, scanning customer information such as name, date of birth, and address, and integrating it into the KYC process. This eliminates the manual collection of customer documents, making the KYC process more transparent, efficient, and error-free.
- IDP can combine with AI technology and algorithms to compare and validate customer information, account statements, and cash books to detect suspicious transactions or activities.
Customer’s expectations for bank’s services are increasingly high
Customers are more demanding than ever. According to PwC, up to 73% of customers say a positive experience will strongly influence their consumption decisions.
But banks have to deal with massive data, with the amount of bank data created each second increasing by 700 percent by 2020, according to The Hill. The problem is that the high volume of data is still processed manually at many banks, and lacking standardization leads to longer processing times, waiting lines, and an unpleasant customer experience.
With the ability to automatically collect and extract documents accurately in the shortest time, IDP can help banks eliminate cumbersome paperwork and limit errors, resulting in faster processing time and a more optimal experience for customers.
- IDP can extract and process customer data, evaluate customer information, integrate data into the system, and transfer information to relevant departments, allowing the bank to quickly handle tasks such as opening cards and reviewing loan approval.
- Automatically convert unstructured documents such as loan application forms, bank statements, asset verification, etc., into digital documents, allowing bank staff to easily approve documents and customers to receive loans faster.
Efficiency enhancement is always desired
West Monroe Partners and American Banker’s survey states that improving efficiency is the top strategic priority of banks, with 61% of the respondents saying they are making investments in digital technology to boost productivity.
But banks always deal with large volumes of unstructured data and manual paperwork. Typically, the data classification and storage are done manually, causing obstacles such as time-consuming processes, low productivity, and increased operational costs.
In addition, 80% of unstructured data poses a challenge for the bank to process and utilize the data. As a result, many banks can only rely on 20% of structured data to make business decisions, leading to unexplored information from unstructured data sources, affecting their business strategy in the long term.
Banks need an effective solution for handling unstructured data to increase productivity and optimize operational efficiency. Source: emagia.com
IDP solutions can help banks solve unstructured data problems, save costs and human resources, bring optimal operational efficiency due to the ability to process all types of data with maximum speed and accuracy,
- IDP can convert all banking forms into digital documents in seconds, including structured, semi-structured, and unstructured data.
- IDP leverages data from these forms to extract and generate reports to aid decision-making and business strategy development.
However, to achieve the goal of productivity enhancement, businesses need to build a smooth data processing roadmap, limiting disruptions in the deployment process. This can be achieved through a combination of IDP and RPA. After the IDP performs data collection, analysis, and extraction, RPA passes the output data from IDP processing to other systems. Combining these two technologies creates a comprehensive automation process, limiting interruptions and optimizing the power of automation technology in the enterprise.
IDP is an ideal technology solution for banks to collect and extract customer behavior and activities, helping banks build appropriate product improvement strategies, promote a comprehensive end-to-end process, and deliver a superior customer experience. Combined with AI, the IDP application aims to comprehensively automate the process, allowing businesses to optimize operations, improve efficiency and save costs.
In Vietnam, akaBot is a pioneer in providing IDP solutions, creating a premise for the journey of comprehensive business automation.
- IDP technology developed by akaBot integrates smoothly and efficiently with the akaBot’s RPA core platform. As akaBot successfully develops IDP and RPA, businesses do not have to work with multiple vendors to implement a complete automated document process, thereby saving significant costs and achieving greater results.
- akaBot ensures a fast deployment speed (4-6 weeks).
- akaBot is a “Make in Vietnam” platform with a friendly and easy-to-use interface, offering both Vietnamese and English versions for various customers.
Contact us to learn more about the akaBot’s IDP solution and experience it today.
akaBot (FPT Software) is the operation optimization solution for enterprises based on RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 13+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, Logistics…, akaBot is featured by Gartner Peer Insights, G2… and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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