REDUCE LABOR COSTS
ML can help banks reduce their document review time and costs — a typical bank might require a team to manually review each application that requires supporting documents to be verified. By using ML algorithms, banks could reduce this manual review time by as much as 80% by having machine learning flag errors or discrepancies. When implemented, ML algorithms facilitate over 90% straight-through processing of all reviewed documents.
Having artificial intelligence verifying and double-checking documents does a few things: One, it drastically reduces human error and guarantees the institution will satisfy applicable regulations. Two, by utilizing a centralized, semi-automated document verification solution, financial institutions dramatically reduce labor costs, allowing the money that would have gone to staff pay to be invested through other avenues. And three, decreasing the number of monotonous tasks staff must complete enables them to serve more customers and increase revenue by speeding up the application process for new loans or credit cards.
Intelligent document processing, when integrated into current systems, can perform a variety of time- and money-saving processes. It can quickly determine which delinquent loans should be pursued for collection and which are legally protected, saving your institution potential legal and reputational risks. ML can also automatically sort, scan and track customer mail while allowing your bank to track their correspondence from customer service inquiries, collections notices and court documents, as well as read judgements and bankruptcies to protect banks against CFPB scrutiny of loan servicing and collection practices.
Machine learning offers a thorough and comprehensive solution to every bank’s compliance problem and works with their existing infrastructure to create a sustainable, scalable solution to rapidly approaching stringent compliance regulations. Accuracy and completeness are at the forefront of every bank director and compliance officer’s mind as they explore best practices for compliance, labor challenges and financial pressures.
As financial institutions lean more and more into automation, banks must stay ahead of the curve and start incorporating machine learning into their everyday compliance tasks. The current environment of economic uncertainty and increased regulatory pressure has created the necessity for financial institutions to examine their existing compliance systems, the scalability of those solutions and find alternatives to solving these challenges that can address both the financial and regulatory pressure that Texas banks are currently facing today.