Touchless Processing: The Future of Efficient and Secure Bank Statement Data Management

According to a report by FIS, digital transactions are on the rise instead of cash payments. But did you know that each transaction requires manual verification, a mile-long paper trail? We also have to consider the potential for human error in these scenarios.

Picture a system where AI parses complex contracts. No delays, no errors, just frictionless efficiency. This is the power of touchless processing. 

It helps automate tasks and also safeguards against risk. It boosts speed and drives advantage in a hyper-competitive space. In this blog post, we will explore touchless processing, its advantages, and its efficient implementation in bank statement verification. So, let’s get started.

What is Touchless Processing?

It takes a lot of work to process documents manually in a world of unstructured data. Touchless processing is a great way to streamline transactions. It doesn't require human intervention. Therefore, businesses can save countless hours and use their resources better. But how does touchless processing work?

We can now automate processes that usually require human labor with AI and ML. For example, we can now automate invoice processing. Let’s look at AI and ML's crucial role in redefining this traditionally manual practice.

The role of AI and ML in perfecting touchless processing

Invoice processing has many touchpoints. Technology can automate them in the following ways:

AI-powered optical character recognition (OCR) helps extract text from documents. It can detect text in invoices, receipts, or forms. ML algorithms in documents find patterns and structures. This helps get details like account numbers, amounts, and dates.

Document classification is an essential part of touchless processing. ML makes sure that documents are sorted accurately without mistakes. Automated classification also helps route these documents to the appropriate workflows.

ML models recognize changes indicating fraud. They alert bank systems promptly. Think of it as something similar to using your credit card in a foreign country. ML models assess risks by analyzing factors like loans and credit scores. Banks use this information to determine loan eligibility.

What are the benefits of touchless processing?

• Enhanced efficiency: Touchless processing boosts the efficiency of operations by eliminating manual intervention. This automation allows faster processing cycles, reducing time to days or hours. Optimizing processes such as Accounts Payable (AP) helps businesses operate at peak efficiency. This saves valuable time and resources.
• Reduced errors: Manual data entry is prone to errors, leading to issues such as duplicate payments or fraud attempts. Touchless processing reduces these errors by automating data entry, leading to higher workflow accuracy. Invoices with incorrect information are also flagged. This ensures they get reviewed and corrected.
• Less manual labor: Tasks that once required many hours can now be automated with touchless processing. This reduces unnecessary paper trails. It also frees up valuable resources to focus on more important tasks—leading to a more productive and satisfied workforce.
• Scaling opportunities: As businesses grow, manual processing can become a bottleneck. Touchless processing automates data entry. It allows businesses to handle a larger volume of invoices without additional hires. This scalability ensures that companies can continue to grow. 
• Reduced costs: Touchless processing can lead to substantial cost savings. These savings come from various sources. They include reduced printing expenses, less need for physical storage space, and avoiding penalties due to late payments. By automating processes, businesses can also reduce labor costs, as fewer employees are needed for manual data entry. 
• Better visibility: Touchless processing provides better control over the entire process. It also improves visibility. All invoices and receipts are stored in a central hub. This makes it easier to automate the invoice approval workflow fully. This centralized system allows for easy tracking and monitoring of all transactions, providing businesses with valuable insights into their operations. It also ensures that all processes are transparent and accountable, enhancing the business’s credibility.
• Improved Compliance: Touchless processing can help improve compliance by ensuring that all processes adhere to predefined rules and regulations. This can be particularly beneficial for companies that must comply with strict regulations. 
• Enhanced Customer Satisfaction: Touchless Processing can improve customer satisfaction by reducing errors and speeding up processing times. Customers appreciate the quick and accurate processing of their invoices and payments. This enhances the customer’s experience and contributes to their loyalty and trust in the business. 
• Environmental Sustainability: Touchless processing reduces the need for paper, making it a more environmentally friendly option. It contributes to sustainability by reducing paper waste. This helps the environment and enhances the business’s reputation as a responsible and sustainable entity. 
• Competitive Advantage: Companies that adopt Touchless Processing can gain a competitive advantage. Touchless Processing can give businesses an edge over their competitors. It provides efficiency, accuracy, and cost savings. 

What is Bank Statement Verification?

Bank statement verification is a process used by financial institutions, lenders, landlords, and other entities to confirm the accuracy and validity of the financial information provided by an individual or entity. This verification typically involves reviewing bank statements provided by the individual to ensure that the stated income, expenses, and account balances are consistent with the information provided on application forms or other documents.

The process of bank statement verification may involve comparing the information on the bank statements with other financial documents, such as tax returns or pay stubs, to detect any discrepancies or inconsistencies. It helps to assess an individual's financial stability, creditworthiness, and ability to meet financial obligations.

How to set up Touchless Bank Statement Verification?

Setting up touchless bank statement verification involves leveraging technology and automation to streamline the process without requiring the physical handling of documents. Here's a general outline of steps to set up touchless bank statement verification:

1. Select a verification solution: Choose a bank statement verification solution with touchless capabilities. There are various software platforms and APIs available that can automate the verification process.
2. Integration with banking systems: Integrate the verification solution with banking systems or third-party APIs to access bank statement data electronically and securely. This may involve establishing secure connections via APIs or utilizing bank-provided data access protocols such as Open Banking APIs.
3. Data extraction: Implement algorithms or machine learning models to extract relevant information from bank statements automatically. This includes account balances, transaction history, and account holder information.
4. Data validation and analysis: Develop validation checks to ensure the accuracy and consistency of the extracted data. Perform analysis to identify anomalies or suspicious transactions that may indicate fraudulent activity.
5. Identity verification: Integrate identity verification mechanisms, such as biometric authentication or multi-factor authentication, to ensure the legitimacy of the individual providing the bank statements.
6. Compliance and security measures: Implement robust security measures to protect sensitive financial data and ensure compliance with relevant regulations, such as GDPR or PCI DSS. This may include encryption, access controls, and regular security audits.
7. Continuous improvement: Regularly review and refine the touchless verification process based on feedback, performance metrics, and evolving technological advancements to enhance efficiency and accuracy over time.

Finding the Right Bank Statement Verification Software 

When choosing software for bank statement verification, look for a solution tailored to your unique requirements. 

Docsumo is an intelligent document processing (IDP) solution that utilizes OCR (Optical Character Recognition) and machine learning algorithms to extract data from various documents, including invoices, receipts, and bank statements. 

The platform then validates extracted data to ensure accuracy and completeness, minimizing errors in document processing. Here are some more Docsumo features: 

• Integration: Docsumo can integrate with other software systems and applications, allowing seamless data transfer and workflow automation. Standard integrations include CRM systems, accounting software, and ERP systems.
• Customization: Users can customize extraction rules and templates to meet their specific document processing requirements, enabling flexibility and adaptability to different document formats and layouts.
• Analytics and reporting: Docsumo provides analytics and reporting capabilities to track document processing metrics, such as extraction accuracy and processing time.
• Security: The platform prioritizes data security and compliance, employing encryption, access controls, and other security measures to protect sensitive information. 

Try error-free bank statement processing today

In a world full of digital payments, the number of invoices has skyrocketed. This is due to many reasons. For instance, it allows merchants to accept online payments through QR codes. 

This also means that the invoices generated are at an all-time high. It creates an urgency for a reliable, touchless invoice processing solution. It is no longer feasible for businesses to hire numerous resources to verify piles of invoices manually. 

Therefore, automation is the way to go. It offers the perfect, fast, and accurate, convenient solution. However, one thing to remember here is that the software solution you go for needs to be impeccable. 

Docsumo is a G2 ranked “High Performer.” It offers hassle-free implementation. Its scalable architecture effortlessly accommodates enterprise-level demands. Moreover, users own and control the data. This makes it the ultimate solution for automating data extraction and verification. 

So what are you waiting for? Explore our touchless processing solution now. 

FAQs: Touchless Bank Processing

What is touchless invoice processing?

Touchless invoice processing automates the entire invoice processing cycle. It eliminates manual data entry and approvals. This reduces costs, improves accuracy, and speeds up payments.

What is automated bank statement extraction?

Automated bank statement extraction uses AI. It automatically extracts transaction data from bank statements. This eliminates manual data entry and saves time.