Intelligent Document Processing (IDP) is emerging as one of the fastest-growing technologies in AI today. It has rapidly evolved from a fresh innovation into a practical solution that helps businesses simplify their daily operations. For back-office teams that often struggle with tons of paperwork and time-consuming manual input, IDP can be a game-changer. What once took hours, IDP can handle in a matter of seconds. Let’s dive into the world of IDP, exploring what it is, why it matters, and how it can make document handling much more efficient.
What is IDP
Intelligent Document Processing (IDP) is a workflow automation that leverages a combination of technologies to automate the extraction, categorization, and analysis of data from various sources. In this process, OCR plays a key role in extracting machine-readable text, while AI and machine learning help interpret, classify, and improve accuracy by adapting to different document types and contexts.
How IDP works
Intelligent Document Processing (IDP) creates an opportunity for businesses to transform unstructured documents into actionable insights with just a few clicks. Let’s take a closer look at the IDP process in three main steps:
1. Data extraction
To begin with, the document that has been inputted is processed for data extraction, where OCR automatically identifying and capturing every relevant data.
2. Data validation and analysis
After data collection is complete, the data is then validated and analyzed based on a set of predefined rules, resulting in valuable insights to support decision-making.
3. Data integration
In the final step, the result is seamlessly integrated into the user’s internal system or into currently used external platforms, allowing for further processing.
Key features of IDP
With the perfect combination of cutting-edge technologies, IIntelligent Document Processing (IDP) brings numerous features that enhance and ease document processing, such as:
- Automated data capture
- High level of accuracy
- Advanced analytics
- Adaptive learning engine
- Flexible integration with other systems
- Robust data security
Examples of IDP in action
To gain a clearer understanding, here are several ways of how Intelligent Document Processing (IDP) is commonly used in the business process.
1. Invoice Processing
During account payable, accountants often face a large number of invoices to manage. IDP can automate the extraction and validation of invoice details, such as number, date, and vendor name, ensuring all information is correct and transferring them into the finance system.
2. Loan Application Processing
With customers demanding fast approvals, efficient loan processing is crucial. By integrating IDP into document assessment, loan processors can save time on data collection and focus more on making informed decisions. Furthermore, can streamline the analysis of bank statements by instantly extracting and generating them into a brief financial report, with detailed cash flow and potential fraud detected.
3. Insurance Claims
One of the biggest issues in processing claim documents is the need for manual data entry, which often leads to long waiting times for customers. By taking advantage of IDP capability, insurers can automate data extraction from ID cards, medical records, claim forms and other supporting documents. Not only improves efficiency, implementing IDP in claim processing also enhances customer experience.
How to get started with IDP
When businesses start considering new technology integration, one common challenge is knowing where and how to begin. With so many options available today, it’s important to find a solution that can effectively address the problem. For example, adopting AI-powered document processing automation to reduce errors and speed up data entry.
Fintelite delivers an AI-powered solution for businesses to manage, process, and extract data from documents. Fintelite capably handles various types of documents, turning them into insightful data in seconds. With Fintelite, automatically pull structured data from documents, just by uploading. Whether it’s invoices, forms, or bank statements, Fintelite brings consistency and precision to every document data extraction. Book a demo to see how Fintelite automates your paperworks and saves you more time.
