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Ian McCain

How Intelligent Document Processing Transforms Lending

documents automatically sorting into appropriate stacks

Let’s face it, the lending landscape for credit unions has been more challenging over the last few years, with inflation, rising interest rates, and ongoing economic uncertainty making it difficult to plan and reach strategic goals. In such a challenging environment, many credit unions and financial service organizations are turning to AI-powered intelligent document processing (IDP) to create future-fit organizations and capitalize on the efficiencies that IDP creates. This emerging technology is proving to be a game-changer for loan processes for a variety of reasons:

 

1. Deliver Faster Lending Decisions

Today's lending market is highly competitive, and credit union members are more demanding than ever. When loan applicant information is slow to reach business systems, decisions are delayed, leaving members uncertain about their choice. IDP can change this dynamic by accurately extracting, quickly classifying, and seamlessly delivering documents and data to the document repository. This accelerates the decision-making process by presenting the important information needed to the appropriate decision makers - ensuring that members receive prompt responses and improving their overall satisfaction.


2. Unlock Insights from Unstructured Data

Many credit unions struggle with data locked in paper, digital semi-structured, or unstructured documents (depending on the input source). With the digital era continuing to introduce new file formats and digital channels, credit unions are turning to AI-powered IDP solutions to help unlock valuable insights. More comprehensive data drives better decision-making and leads to more strategic results. By leveraging IDP, credit unions can turn previously inaccessible data into actionable intelligence, helping them better serve their members and mitigate risks.


3. Reduce Errors from Manual Processes

Accuracy is crucial in lending, given the large number of document types and data points required. Manual data extraction is prone to human error, which can compromise data quality and reliability. IDP significantly reduces these errors by automating the data extraction process. This not only improves the accuracy of the data but also enhances the overall reliability of the information used in lending decisions, ensuring that credit unions can maintain the trust of their members.


4. Enable a More Productive Team

IDP doesn't just automate tasks; it augments human capabilities. By integrating validation, approval, and feedback loops into a streamlined process, IDP allows credit union employees to work smarter. This technology frees up employees' time, allowing them to focus on higher-value projects that require human creativity and strategic thinking. As a result, teams become more productive and can contribute more effectively to the organization's strategic goals, ultimately benefiting the credit union's members.


5. Gain Continuous Improvements

One of the standout features of IDP is its ability to learn and improve continuously. Powered by artificial intelligence, IDP operates on a continuous learning model that is augmented by “human-in-the-loop” exception handling. This means that the system can be easily trained and will deliver ongoing performance enhancements over time. As IDP processes more documents, its accuracy and efficiency increases, providing credit unions with a tool that continually evolves to meet their needs, and continually improves based on human guidance.



In short, the fierce lending landscape requires innovative solutions to stay ahead. Expectations from members are consistently moving toward faster, more accessible and more convenient borrowing experiences.


AI-powered intelligent document processing offers a strategic advantage by delivering faster decisions, unlocking insights from unstructured data, reducing errors, enabling a more productive team, and providing continuous improvements. By tapping into this technology, credit unions can navigate the uncertainties of the market and create organizations that are not only future-fit but also capable of thriving in any economic climate. There's gold in them thar' hills, and IDP is the key to uncovering it.

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