In the banking and financial services industry, each line of business has its own processes and corresponding tech solutions. How can new advancements in automation provide solutions that positively impact the firm overall? We’re breaking down 3 key ways:
Efficiency is a measure of time, cost, and accuracy. With the burden of regulatory practices adding strain to each work day, simply hiring more employees isn’t a solution to the problem, but a bandaid.
Intelligent document processing (IDP) captures data from documents (including email, text, PDF and scanned documents), categorizes it and then extracts the relevant data for further processing using AI technologies such as computer vision, OCR, NLP and machine/deep learning. It works on two axes – speed and accuracy – and it streamlines critical back-office functions like account opening applications, Anti-Money Laundering (AML) verification, executing a change of address, change of beneficiary, account transfers and designations.
Now more than ever, speed is top priority as customers and agencies require detailed data into their portfolios as accurately and quickly as possible.
Greater efficiencies and fewer errors can translate into more savings for financial institutions. A brief from Bain reports that operational risk — “the risk of loss due to errors, breaches, interruptions or damages” — caused nearly $210 billion in losses due to errors in process management and poor client interactions.
Financial institutions are obligated to do their due diligence (CDD) and know their customers (KYC) — two critical functions in banking and financial services. Automation makes these processes easier than ever before, while allowing for growth with an increased capacity to take on even more customers, without sacrificing accuracy or due diligence.
When TD Ameritrade merged with Scottrade Financial, they needed to extract and reconcile co-applicant account information from more than one million unlabeled pages in order to comply with KYC regulations. Some of the forms included handwritten text, some had originally been faxed in, and others were low-resolution images that existing data extraction technology was unable to read and process.
TD Ameritrade planned to hire 60 data keyers to manually index forms, extract the necessary information, and get it into the correct system of record. With Hyperscience, TD Ameritrade was able to double the processing speed with 50% fewer data keyers, quadrupling throughput in under four weeks.
We ran our traditional approach of hiring keyers to enter the data and ran the Hyperscience pilot alongside it at the start. The quality and throughput metrics favoring the Hyperscience solution were overwhelming. It took a matter of weeks for us to go ‘Okay, that’s enough data. We proved it. Let’s roll.’ We began shifting our efforts to focus on Hyperscience and have done that ever since.Sean Van Moorleghem, Managing Director, TD Ameritrade
Improve customer experience
As the scope of regulatory requirements continues to rise, how do financial institutions stay ahead of the market while satisfying their compliance needs? By freeing up employee capacity, institutions can focus on improving customer experience.
For example, when it comes to mortgages, the first to respond to customer requests is generally the first to win business. The information and data needed during the mortgage underwriting process can largely be streamlined through IDP. This means that consumers can get answers faster and employees can have more time to dedicate to customer service without the backlog of back-office operations.
What can be done in seconds by a ML-driven solution would take several data keyers to read, understand, and translate to usable data. Business will grow as documents and data can be streamlined digitally, leading to an increased capacity for customer-facing operations. A report from research firm Kantar noted that financial institutions that lead in customer experience (CX) have higher share of deposits as well as a better chance of cross-selling other products and services to their current customers.
U.S. companies lose approximately $1.6 trillion annually due to poor CX. A focus on CX through automation will not only lead to savings, but also grow a loyal customer base.
Discover 3 key use cases where financial institutions can automate efficiently and what some of those automated processes look like in action.