The scale of raw data that most credit institutions have, such as consumer transaction data and statements, is enormous - and the magnitude doubles every year. While the industry has transitioned to tracking this data digitally (we hope!), most of it is still stored as large sets of unstructured documents.
It doesn’t come as a surprise to see that very few organizations have the right tools to:
- Segment these documents into a structure that provides business-ready data
- Perform automated functions to push this data between systems and utilize automation for purposes like redaction
The challenge lies in performing manpower-intensive tasks on this sizable set of documents. From categorizing and indexing unstructured documents, redacting PII, to even scrubbing this data before internal collections - the human element can frequently cause delays, errors, and lack of transparency - which, in turn, increases costs, lowers margins, and impacts the consumer experience for these lenders.
The solution (let’s jump right in!)
As we have seen, managing your documents manually is manpower-intensive, error-prone, and costly (in more ways than one). There’s limited visibility for consumers - who are looking to review actions that have been taken on their account - and for you - who is looking to get better intelligence efficiently.
How do you solve this challenge? How do you structure your documents in an easy-to-use and easy-to-share way without using a huge amount of manpower on ‘fixing’ this?
The answer is technology, and you already knew that. However, force-fitting generic solutions for use cases of regulated industries, especially collections, generally yields poor-fit solutions. You need technology that is built for credit and collections.
Let’s look at this from the lens of intelligent document processing. With automation, there is a huge scope to boost throughput and efficiency by removing error-prone, labor-intensive manual handoffs and legacy documentation management techniques. However, you still need the kind of oversight that only a compliance/ARM expert can provide.
What if an intelligent document processing technology, paired with an ARM-specific compliance team, could give you that automation?
Organizations are now taking a long, hard look at their lending processes, seeking ways to get more out of the flow of documents in their organization. Let’s take a look at how IDP (Intelligent Document Processing) can impact your growth:
- Automated redaction for better compliance: Technology can give you a significant leg-up, in terms of accuracy and efficacy, on manual redaction processes. Customer data leaks are a serious liability, so securing PII through automated redaction gives you the technical resources and strategies to simplify compliance, safeguard data, and protect your organization.
- Digital documents transformed into business-ready data: Using intelligent document processing, all the repetitive yet cumbersome labor that went into analyzing the documents can be made far more process-driven. You can easily customize the technology to your unique indexing standards, document types, workflow, and business requirements.
- Reduced risks, increased compliance : A reliable and fully-managed tool to handle scrubs like SCRA can reduce manpower costs and increase compliance.
- Improved collaboration using cloud technologies: With your documents being digitized through OCR, you can easily extract and insert data across systems in a fast and seamless way, from legacy ARM systems to excel documents and datasheets, allowing your technological ecosystem to be far more robust.
- Better governance of the overall process: With the time and manpower intensive tasks automated, you can spend time on meaningful work that directly impacts your bottom line.
The future for lending looks extremely bright and exciting, especially if the technological adoption continues to rise. With business picking up to pre-Covid levels and the concept of remote teams becoming far more commonplace, implementing the right solution for your organization becomes more important than ever.
Are you looking to implement an Intelligent Document Processing solution? Reach out to email@example.com for a demo on how powerful such a solution can be for you.