{"id":222,"date":"2020-09-12T16:02:02","date_gmt":"2020-09-12T16:02:02","guid":{"rendered":"https:\/\/machine-learning.webcloning.com\/2020\/09\/12\/3-use-cases-for-document-processing-automation-in-commercial-banking\/"},"modified":"2020-09-12T16:02:02","modified_gmt":"2020-09-12T16:02:02","slug":"3-use-cases-for-document-processing-automation-in-commercial-banking","status":"publish","type":"post","link":"https:\/\/salarydistribution.com\/machine-learning\/2020\/09\/12\/3-use-cases-for-document-processing-automation-in-commercial-banking\/","title":{"rendered":"3 Use Cases for Document Processing Automation in Commercial Banking"},"content":{"rendered":"
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\"automation-in-commercial-banking\"\n<\/div>\n

Among the most complex use cases we\u2019ve found when working with customers is in commercial banking. From issuing commercial mortgages to meeting stringent anti-money laundering and \u201cknow your customer\u201d requirements, commercial banking processes involve untold numbers of unstructured documents, making them perfect candidates for intelligent process automation.\u00a0<\/p>\n

For years commercial banks have been seeking ways to automate processes, such as by using robotic process automation (RPA) in customer onboarding processes. RPA is indeed useful<\/a> in automating processes that involve the exact same steps over and over, typically with highly structured documents.\u00a0<\/p>\n

But once commercial banks tackle that low-hanging fruit, they often find themselves wanting a more intelligent banking automation solution, one that can deal with the many unstructured documents<\/a> involved in various processes. In this post, we\u2019ll look at three such use cases for intelligent commercial banking automation solutions.<\/p>\n

Automating the commercial mortgage process<\/strong><\/h4>\n

Let\u2019s first consider the commercial mortgage process. All commercial banking is about assessing the creditworthiness of an applicant to ensure the lender can make money while managing risk. At the commercial level, this is a lengthy process that involves reams of documentation, from W-2s and bank statements to tax returns and business plans.\u00a0<\/p>\n

Traditionally, all of these documents would be reviewed by humans, who extract key data points and enter them into spreadsheets or other downstream systems for analysis. It\u2019s a cumbersome, time-consuming process.\u00a0<\/p>\n

A poll conducted by Moody\u2019s Analytics<\/a> asked bankers what their biggest challenge was in initiating the commercial loan process. More than half (56%) said it was the manual collection of data and subsequent back and forth with the client.<\/p>\n

An intelligent commercial banking automation tool would help the bank in a number of ways. Most banks now have an online application process. As a first step, the IPA tool could classify all of the documents to make sure all required documents have been filed. It could then \u201cread\u201d the documents and extract the relevant data points required for downstream processors to make an informed decision on the application.\u00a0<\/p>\n

Here\u2019s where the big difference lies between RPA, as well as templated approaches to automation, and an intelligent automation tool. While the former can deal only with highly structured documents that are all the same, IPA uses natural language processing (along with, in Indico\u2019s case, a massive database <\/a>that understands human language) to discern context in a document. That enables the tool to read a document much like a human would and find whatever data it\u2019s been trained to find, regardless of where it may be located or the formatting of the document.\u00a0<\/p>\n

Related Article: How Automation Eases the Pain of Commercial Bank Customer Onboarding<\/a><\/p>\n

Implementing automated anti-money laundering\u00a0<\/strong><\/h4>\n

Another common use case for commercial banking automation is meeting regulatory requirements around anti-money laundering (AML). In the U.S., that means complying with the Bank Secrecy Act<\/a> and related regulations meant to deter money laundering by terrorist financing networks and drug cartels.\u00a0<\/p>\n

The law requires banks to take numerous steps to deter and detect money laundering, including<\/a>:\u00a0<\/p>\n