All About Effective Document Capture. Endless automation in the financial sector,with the help of innovative finance and mortgage software, has changed the sector’s look and feel.
It is true that loan origination, mortgage servicing, and customer on-boarding software solutions are simplifying business for financiers.
However, the introduction of document capture tools in the system has created an impact on the system as a whole.
What does a document capture tool do?
A document capture tool extracts information from a physical document for digital representation. The content in the document is captured, indexed, shared, stored and retrieved in the process.
Document capture is carried out in multiple ways (like OCR –optical character recognition,which identifies machine print,or ICR – intelligent character recognition, which identifies handwritten characters). The information is first captured, then interpreted, authenticated, and finally sent to target systems.
What is the need for document capture tools in finance and banking?
Enterprise Document Management (EDM)solutions enable bank officials to obtain information from a single interface, which can be used to access all enterprise documents. It also facilitates regulatory compliance and information security. Compliance and security parameters are extremely critical for banking and finance institutions to maintain integrity.On the other hand,the captured information being indexed enables you to retrieve information using keyword-search.
The speed and accuracy of document capture tools in banking and finance are helping integrate and bridge the gaps between front and back offices.
The benefits and scope the finance, mortgage, and banking software:
Easy storage and quick retrieval
Effective document capture can equip finance executives to carry out searches and simultaneously use productivity tools to avoid wasting time on extracting information and resolving lingering queries. The software solution mitigates human errors and inefficiencies during manual practice, help strack missing documents easily, and validates and verifies documents easily. Document capture tools allow data compression, so that bankers and financers are geared with vast storage spaces.
Collaborate with teams
Integrated functions result in efficient work. Document capture applications create seamless integration between departments like finance, HR, procurement, logistics, customer service, customer and supplier relations and other back-endsupport sections. The software helps in standardizing processes in the workflow in order to integrate work functions seamlessly within internal and external departments.
Follow processes and procedures
Document capture solutions can be used to ensure that procedures are executed without mismatches and human errors. Moreover, the assurance of appropriate procedures speeds up processes by enabling managers and top-level executives to provide quick approvals. The enhanced tracking capabilities can provide real-time information like debtor-daysratio and more to keep the financers updated.
The solution can keep up with fluctuating regulations,and cuts down the time taken to implement changes. The automation system enables bankers and financers to recall regulatory needs correctly and provide increased security. Swift implementation of regulatory mandates has been cost effectiveand efficient for institutions.Document capture solutions can comply even with difficult legislation like SOX (Sarbanes-Oxley Act) and drive up efficiency in business functions.
The document capture technology can be introduced to finance and banking with mortgage servicing software. They can support operations on a massive scale, and document capture is one of the solutions that will accelerate growth of the industry.
Preethi vagadia is currently a Senior Business architect with the Service operations practice at a well-known IT Industry in Bangalore. She has worked in several process improvement projects involving multi-national teams for global customers. She has over 8 years of experience in Mortgage Technology and has successfully executed several projects in Logistics management, Logistics Integration, Reverse logistics, Warranty software and Programmatic Solutions.