Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Highlights
- Data has reached a saturation point. Financial institutions must mine through vast amounts of data to derive actionable insights. This can be a very labor intensive, time-consuming and costly process.
- IDP is an advanced technology that leverages artificial intelligence (AI), machine learning, and natural language processing (NLP) to automate the extraction, processing, and analysis of data from various types of documents.
- The increasing popularity of IDP provides banks and FIs the ability to transform their operating models, drive innovation and unlock new growth opportunities while revolutionizing the way data is handled and managed.
Overview
A nascent market with strong growth drivers
In today’s competitive business landscape, organizations realize the importance of data. But extracting actionable insights from disparate sets of information is often challenging. This is where Intelligent Document Processing (IDP) solutions can be the game changer. These specialized data integration tools can automatically extract data from multiple sources, layouts and formats. Powered by Artificial Intelligence (AI), Machine Learning (ML) and Optical Character Recognition (OCR), the IDP solutions make handling of complex data automated, effortless and quick.
In essence, IDP goes beyond traditional optical character recognition (OCR). It enables companies to have contextual understanding of the information within specific documents, which in turn helps to extract only relevant information that meet the purpose. The tool can easily process unstructured and semi-structured data with high accuracy.
However, IDP solutions need a pipeline of transformations to effectively process documents in their myriad guises.
Key drivers
While many leading banks, insurers and financial institutions have become early adopter of automation-based technology, financial organizations in Canada remain at a nascent stage when it comes to the adoption of IDP. According to news reports, the IDP market in Canada expected to reach a projected revenue of US$ 1,334.2 million by 2030. So, what are some of the key areas where IDP solutions can be applied in the financial services industry?
- Automated processing with increased efficiency: Processing transactional documents where the latter are ingested from upstream applications, facts extracted from the content of those documents as data; and data integrated into downstream applications.
- Data validations towards enhanced security & compliance: Verifying documents and extracted data through pattern analysis, metadata checks or third-party authentications to support processes like KYC, AML or other cases of fraud prevention.
- Augmented reading for accelerated workflows: Reading and comprehension of complex documents to facilitate decision-making and action including searching, summarizing, Q&A, and selective extraction.
Solution
The GenAI Revolution: Transforming Document Processing
Generative AI (GenAI) has provided a fillip to IDP technology, transforming the entire document processing lifecycle. In comparison to earlier ML and deep learning-based solutions, GenAI has made the process significantly easier, faster, and more cost-effective. Even with large language models and retrieval-augmented generation (RAG) capabilities there have been limitations in the past. While they could enhance extraction of data for analytics, creating the models often required extensive data collection, continuous training, expertise, and substantial efforts – making the entire process time-consuming and expensive.
In contrast, GenAI streamlines the entire workflow. GenAI-based IDP models can easily be prompted to perform specific tasks instead of creating complex models from scratch. This translates into a business’ ability to readily and quickly deploy document processing solutions without the need for specialized skills for data extraction. The scalability and ease of use it offers is quite unmatched.
Future of IDP
As technologies continue to evolve and integrate into IDP, they will provide more advanced capabilities for managing and processing complex tasks.
At a macro level, the single most transformative force from a technology perspective has been GenAI. It is beyond a tech hype – with a potential to revolutionize the future of business. From modernizing legacy systems to overcoming technical debt, enterprises, including financial institutions, are accelerating the adoption of AI/GenAI to build a robust digital core.
Specific to document processing, by leveraging GenAI, companies can increase accuracy in document processing, reducing operational costs, improving productivity and efficiency while enhancing their ability to build intelligent solutions throughout the value chain. Its ability to generate human-like text while understanding the context and follow complex instructions further enhances its utility, makes GenAI an indispensable tool for financial institutions.
The future is promising with limitless possibilities for FIs to transform their business processes to become more real-time, predictive and flexible. Embracing new technologies is essential for staying competitive in today’s data-driven world.
