Bank statement automation is being assessed to help industries optimize their operations and examine customer data, especially during the underwriting process. Underwriting is an important process in the financial services industry, particularly for Malaysian enterprises. Bank statements are among the most critical documents considered during the underwriting process. Bank statements provide detailed records of an individual’s or business’s financial activity. This document is important because it can affect an underwriting decision, which allows the business to determine whether the consumer is eligible for the financial products it offers.
However, the underwriting process for bank statements, as simple as it appears, poses a number of challenges for many Malaysian businesses, including being error-prone, slow processing, and delayed approval, which leads to inefficiency. To tackle this problem, the best solution is using automation. The best strategy is to use automation. This can improve the efficiency of the underwriting process. In this article, we will go into more detail about how Malaysian enterprises are transforming their underwriting process by automating bank statements.
The Traditional Underwriting Challenge
Traditional underwriting requires enterprises to manually review bank statements. Here are common challenges throughout the traditional underwriting process.
1. Time-Consuming Data Entry
Bank statements are dense with transaction records, not just one or two. Imagine one document takes an hour. How about if an enterprise has to deal with one hundred or a thousand bank statements per day? It will take several hours or possibly days to complete it.
Additionally, in this digital era where not all of the documents are legitimate, documents must undergo multiple verification checks to ensure authenticity. This obviously slows down the underwriting process and is overwhelming.
2. Human Errors
Bank statements require careful categorization of each transaction. This makes the process prone to errors such as missed entries, incorrect classifications, or calculation errors. This can potentially compromise the accuracy of the entire underwriting decision.
3. Inconsistent Decision-Making
Traditional underwriting involves staff handling, this can make different staff or underwriters come to different conclusions when reviewing similar bank statements. One underwriter might approve an application, while another might reject it based on the same financial history. This inconsistency can lead to company trust.
Bank Statement Automation
Bank statement automation is the process of extracting, analyzing, categorizing, and reconciling data from bank statements automatically using advanced technology such as optical character recognition (OCR). This method reduces the need for manual input and review, speeding up the underwriting process.
Here are the key benefits for Malaysian enterprises using automation in underwriting:
1. Faster Processing and Scalability
By choosing automation, Malaysian enterprises can save significant time as OCR processes bank statements faster and with precision. It can process hundreds or thousands of bank statements in minutes instead of the days that the manual method often takes. This not only accelerates workflow but also helps employees to focus on important tasks rather than repetitive data entry.
2. High Accuracy
Unlike traditional underwriting, which is prone to human errors, automation delivers highly accurate results. Businesses do not have to worry about errors. An OCR solution like Fintelite, for example, can achieve over 90% accuracy levels and can spot any sign of potential fraud in bank statements precisely. This significantly eliminates multiple checks and errors that could affect a business.
3. Improved Customer Experience
With automation, the underwriting process can be done quickly. As a result, decisions will be made more quickly and objectively since AI will categorize and analyze data consistently, making decisions more reliable and increasing consumer satisfaction and trust.
Choosing the Right Bank Statement Automation Tools
We have discussed above the automation of bank statements in the underwriting process, as well as the challenges for Malaysian enterprises when using the traditional underwriting process. The other important part is choosing the right tool. This decision can be tricky as the solution must align with business needs.
One of the best solutions that are capable and adaptable for Malaysian enterprises is Fintelite. Fintelite’s OCR can process bank statements 10x faster with over 90% accuracy, and it can detect even the smallest frauds, such as modifications in the number of transactions. This has a huge impact on Malaysian enterprises’ ability to enhance efficiency and stay updated in this digitally competitive market. Also, businesses can tailor based on their needs, ensuring flexibility and scalability.
