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How does Document AI address key data challenges in banking?

September 2, 2022 - Team EdgeVerve

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The banking sector generates a massive amount of data, which is growing at a rapid pace due the adoption of digital technologies. Moreover, following the online transition of banking activities, customers leave behind their digital footprints or valuable customer data, which presents endless opportunities for enterprises to capitalize on. The legacy approach to processing data presents unprecedented challenges, which an intelligent solution like Document AI can readily address.

Document AI uses various AI capabilities like Natural Language Processing, Computer Vision, OCR, and others to simulate human review of documents. For instance, EdgeVerve’s Document AI platform, XtractEdge, helps scale up and process millions of documents across the length and breadth of your enterprise.

The banking sector is a data-intensive industry handling customer documents in bulk every day. However, manually processing and extracting insights from each record is no longer feasible. By introducing AI in banking, the sector can easily override numerous challenges it currently faces pertaining to managing and optimizing data productively.

Key data challenges in the banking sector

It is not only about handling bulk data but also securing it in a centralized system easily accessible by authorized users. Hence, automating the processing of documents and extracting data is just one of the many benefits of Document AI.

The following are a few common challenges the sector is currently facing:

The challenge of keeping up: The banking industry has always been the last to embrace and adopt new technology and innovation. As a result, most legacy systems are inadept at handling the increasing workload. When they attempt to collect, store, and analyze the required amounts of data using outdated infrastructures, the overall system’s stability can fall like a house of cards. This is one of the very reasons why Fintech adoption is so high.

The bigger the volume, the greater the risk: Banking providers upload sensitive customers’ or corporate data into their legacy systems. Data leakage is a given fact in the absence of robust security infrastructure. Banking providers must ensure that data collected by them is secured at all times. But, the numerous outbreaks of data breaches in the banking sector attest otherwise.

Lower levels of data maturity: Data maturity refers to how banking and other financial institutions are utilizing the data available to derive the maximum value out of them. An increased data maturity means improved predictive analytics capability, resulting in more data-driven decisions. However, the knowledge and technology gap in the process is responsible for most banks still relying on legacy approaches to extracting insights from raw data. And the outcome is often shrouded in biases and errors.

How to address data challenges with Document AI?

As the name suggests, Document AI leverages various new-age technologies like Artificial Intelligence and Machine Learning not only to address the document processing problem; it does a lot more.

Just like the example mentioned earlier, AI-powered document processing tools can not only orchestrate the processing of millions of documents without human intervention at record speed, but it also ensures complete security of the data extracted. In addition, such solutions offer robust security features and other elements that quickly address the challenges the banking sector currently faces.

Benefits of AI in banking

AI works best in the presence of data. The banking sector is a data goldmine, which, when extracted intelligently using AI capabilities, can provide banks and even other organizations a real chance to unlock value from their idle data resources. The benefits of Document AI in banks and financial institutions are immense; a few of which are mentioned below:

In a nutshell, Document AI is altering the traditional way we do banking. It not only enhances customers’ user experience but also revolutionizes how banks operate. Undoubtedly, the current challenges, especially with data, raise concerns for bankers. But, with the timely implementation of the right tech-based solutions like Document AI, data challenges will soon become history.

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