The financial sector is going through a transformation - Fintech, Neo banks, Insure techs, wealth techs are revolutionizing the BFSI sector with the use of AI. Different Byte’s Document Parsing is such a tool that helps in this revolution.
This article, brought to you by Differentbyte, a leading generative AI consultancy company in India, explores how document parsing is transforming document scrutiny & underwriting in BFSI, automating document analysis using artificial intelligence, unlocking a new era of efficiency and customer satisfaction.
Document Parsing automates the time-consuming task of document scrutiny into a matter of seconds. Document scrutiny is an in-depth examination of KYC or financial documents to verify their accuracy, completeness, and legitimacy. This involves checking details for errors, ensuring all required information is present, and confirming the document's authenticity
The Burden of Manual Scrutiny and underwriting
Traditionally, financial services underwriting has been a time-consuming and labor-intensive process. Loan and insurance underwriters spend countless hours sifting through a mountain of paperwork – bank statements, tax returns, pay slips, and more. This manual data extraction is prone to errors, leading to delays, inconsistencies, and even fraud. Delays in loan approvals can frustrate borrowers and reduce economic growth. In manual financial underwriting in insurance sector can lead to delayed policy issuance or even denials based on inaccurate data interpretation.
Here are some statistics that highlight the inefficiencies of manual underwriting:
• A McKinsey report estimates that manual underwriting processes can consume up to 80% of an underwriter's time.
• Another study showed that, 80% of the data received by underwriters are in unstructured form, including emails and PDFs, which results in inefficiency and prolonging processing time.
These delays have a significant impact on both financial institutions and their customers.
Document Scrutiny
Automated document scrutiny powered by Differentbyte’s document parsing services can be a lifesaver. This innovative technology streamlines the process of sifting through and analyzing documents, saving you time, money, and frustration.
• Quick response: Document parsing enable quick response to the customer or the sales agent as he/ she uploads the KYC or Financial documents.
• Reduced TATs: The turn around time from the document submission to approval of the case, can be reduced significantly.
• Improved customer experience: Because of the reduces TATs and quick responses, over all customer experience will be enhanced.
• Empowering Sales representatives: It will free up sales representatives from document management tasks, allowing them to focus on customer acquisition and building strong relationships.
Underwriting
Underwriting serves as the bedrock of the insurance industry. It ensures companies accurately assess risks and determine appropriate premiums for each policy. Without this process, insurance companies wouldn't be able to price policies fairly, leading to potential losses for both the company and policyholders.
Here's how document parsing streamlines the underwriting process:
• Automated Data Extraction: Parsing software identifies and extracts relevant information from documents with high accuracy. Underwriters are freed from the tedious task of data entry, allowing them to focus on complex aspects of the application.
• Enhanced Accuracy: AI-document parsing minimizes human error, ensuring consistent and reliable data extraction. This reduces the risk of errors that can lead to delays or inaccurate risk assessments.
• Faster Processing Times: With document parsing ai handling data extraction, underwriters can process applications significantly faster. Loan approvals or policy issuances can be achieved in seconds, creating a smoother experience for customers.
• Improved Scalability: A pdf parsing software can handle large volumes of documents efficiently, enabling institutions to process more applications without adding staff. This is crucial for high-volume lenders and insurance companies.
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