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USE CASE

Digital Onboarding and KYC

 

Client onboarding is often the first impression a customer has with a new banking provider and is critical to setting the tone for the bank’s ongoing customer experience with the client. It is also a critical compliance step for gathering Know Your Customer (KYC) data that will be critical for the ongoing maintenance and management of the account.

Robotic Process Automation (RPA) has become a key priority for bank executives looking to do more with less. When considering the automation opportunities offered through Artificial Intelligence, many banks have identified onboarding and know your customer (KYC) processes as the priority area.

Traditionally a paper-intensive and full-time employee (FTE) heavy operation, the customer acquisition process is often the first impression a new customer gets of a bank and subsequently is the prime focus of digital-only challenger banks who seek to disrupt the industry. Synechron's OCR and NLP integration module, now enables banks to deliver a more frictionless experience by allowing customers to easily upload documents through their mobile or tablet camera and extract both the needed data fields and ‘intent’ of documents to fully-automate the origination process.

The Mortgage Bankers Association has forecast that the home purchase originations and refinance originations will total $1.31 trillion in 2017, and with document management costs forming a huge part of every mortgage originated, any increase in straight through processing of documents will reduce the burden on the industry as a whole. The potential for FTE cost savings and reduced turnaround time for near-instant fulfillment of new account opening or loan origination are incentives too hard to ignore, and Synechron's Robotic Process Automation module focusses on automation of structured, semi-structured and unstructured documents.

Currently bank staff must extract key information from customers or organizations for both KYC and risk purposes. The key information is then input manually into supporting systems. Additionally, the bank staff need to physically scan various documents in order to verify specific clauses, statements or values and then verify certain assumptions or intentions before they can make a final decision on their suitability or credit worthiness for products. All these manual activities from an end to end process perspective are very time consuming and could introduce human error throughout the end-to-end process. Introducing Robotic Process Automation through OCR/NLP automation in the end-to-end processes can help cut down turnaround time and reduce chances of manual errors.

OCR examples:

  • Text extraction
  • Image extraction
  • Unlimited pages can be scanned (reducing licensing costs)
  • Improved OCR with image post processing
  • Automatic document identification

Features

Data Extraction: Users can easily input information by taking a photo of their passport or driver’s license, and OCR technology will extract text from the image and auto-populate identification fields, minimizing the need for manual entry. This vastly improves the customer experience and removes lengthy form filling exercises that often result in new customer leakage.

Linguistic Analysis: The combination of OCR and NLP provides a powerful platform, where new customers can easily upload the required documents using their smartphones. Once those documents are scanned the key values can be extracted and then used to pre-fill fields in the form filing process. This removal of onboarding friction saves valuable time for the customer and reduces potential errors during data entry. The result is a superior customer experience and a streamlined process that delivers a digital-first omni channel solution. Synechron's NLP engine can be further trained to classify statements, for example as true or false, in order to determine if certain clauses are present in documents, and understand the 'intent' within a document. The Robotic Process Automation of unstructured content to distinguish both the semantics and pragmatics of the information open up a number of opportunities to automate very paper heavy processes that traditionally required staff to manage - despite the repetitive nature of the task. Synechron's OCR and NLP Robotic Process Automation solution delivers tangible benefits immediately after implementation.

To learn more about our Artificial Intelligence solutions for Robotic Process Automation and the work we’re doing email us at finlabs@synechron.com