Artificial intelligence in banks and financial service providers

Artificial intelligence offers great opportunities for banks. This is because the use of AI supports banks and financial institutions in various activities and they benefit from an optimization of processes.

Data and AI in banks

AI technologies make banking processes faster, money transfers more secure and back-end operations more efficient. The use of AI is particularly worthwhile in areas where the legislator has imposed a large number of legal requirements on institutions. Document and information verification in the lending business is a prominent example. Today's credit customers demand a process that is as trouble-free and comprehensible as possible. In addition, a decision on their application should be made quickly. The complete application often comprises many pages of more or less structured data - personal details, real estate or construction plans and details, work contracts and modernization documents; and this time as a letter, e-mail, fax or mobile phone photo.

AI unfolds the potential when searching for information in extensive documents, thus making the relevant sections in the document visually easy to find for a human inspector. The same applies to the use of the often required dual control principle. The dual control principle is considered a reliable cross-check in work processes. The intelligent visualization with AI of relevant data in a document, also helps people to work spatially separated in a document. In addition to the two human controllers, the AI also ensures a qualified and well-founded content control and prevents a "quick co-signing" of the second person even in so-called mass transactions.

How AI is helping banks streamline processes for vehicle licenses

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Challenge

For the evaluation of credit requests, various documents are often used to check creditworthiness. For the financing of a motor vehicle, a lot of information can already be taken from the vehicle registration document. Frequently, the data from the documents about the deposited securities is manually entered by the customer advisor.

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How can Konfuzio help?

Konfuzio checks the documents for completeness, possible manipulation, extracts the required data and makes them available for further processing of the credit application.

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Solution

No manual typing is required to collect data from the delivered vehicle documents. Both the credit application and the required securities can be reviewed more quickly. The customer is won over by a fast approval with a cost-effective internal check.

Vehicle registration document sample

Extract and automate salary statements with AI in banks

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Challenge

If the initial loan's fixed borrowing rate expires, borrowers need follow-up financing for the remaining debt. It is important to take out a new Offer or to draw attention to a forward loan so that the borrower decides to take out follow-up financing in-house and does not reschedule with another lender. With the completion of the follow-up financing, it will be necessary to update any documentation, such as proof of equity and salary statements for the last three months.

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How can Konfuzio help?

Konfuzio automatically reads the submitted current documents. For example for salary statements of different structures, fields such as the payment amount, gross salary, tax class, and other employee data are extracted.

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Solution

The lender binds customers through fast processing and receives a comprehensive, data-driven picture of the customer.

Salary statement sample
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    Understanding external contracts with AI and leveraging existing customers

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    Challenge

    A bank's letter of credit business barely contains automatic processing, since both the credit bank and the correspondent bank must subject a large number of documents to individual checks. For example, the insurance certificate of the accredited goods delivery is required in advance to ensure the execution of payments.

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    How can Konfuzio help?

    Konfuzio automatically reads the required data, such as the shipping date, the specification of the insured goods or the transport route. This enables a quick comparison across other documents.

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    Solution

    For the payment processing after a thorough check of the documents' conformity with the letter of credit, no manual reading of the data is necessary. At the same time, incomplete documents are identified more quickly, queries are sent and processes are improved.

    Cargo Insurance Certificate Sample

    Automate land register excerpts, notary contracts and rental agreements

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    Challenge

    One way of offering better conditions than other lenders in the area of loan financing for current contracts is to replace an old loan with a debt rescheduling. However, the question of whether a rescheduling is worthwhile for the borrower can only be answered after careful examination of the loan agreements. In the case of installment loans, for example, it is necessary to consider the characteristics of the loan in order to determine the regulated amount of compensation payments.

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    How can Konfuzio help?

    In old contracts of various formats, Konfuzio distinguishes relevant sections such as special clauses and termination conditions. In addition, other data such as the loan amount and payment terms can be automatically read and prepared.

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    Solution

    Konfuzio replaces completely the manual thinning of old contracts. This enables the potential new lender to quickly provide optimal advice and prepare a corresponding offer for debt restructuring. The borrower benefits from better conditions when the old loan is repaid and the new lender from a data-driven new business.

    Automatic indexing of ID cards with AI in banks

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    Challenge

    Inventory data must be regularly checked for up-to-dateness due to changes in regulations such as the obligation to file copies of identification cards in accordance with the German Banking Act (GWG). The data in documents already stored or for the creation of a new customer are often revised manually and stored in a corresponding database.

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    How can Konfuzio help?

    Data from existing or new ID documents is automatically extracted from the scanned document. This data can then be imported into an existing system and reused – completely without manual input.

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    Solution

    A quick check of the inventory data due to new regulations is possible without considerable additional effort. Typing is no longer necessary and the search for relevant documents is reduced to a minimum.

    Identity card sample

    The special solution for banks and financial service providers in the EU

    finted.ai, the Frankfurt-based FinTech is a unique AI for banks and financial service providers according to KWG § 1 paragraph 1b. With the combination of AI-based text recognition and banking-specific rules and regulations, finted does more than just type documents. The solution validates information through expert knowledge in the form of guidelines, requirements or calculations. finted users thus receive the highest level of automation with high data quality through continuously learning AI and new rules.

    finted is the only AI platform for unstructured text data and documents developed specifically for banks and financial service providers in the European Union, including Switzerland and the United Kingdom. As a joint venture, finted GmbH combines the AI-based text recognition Konfuzio of Helm & Nagel GmbH with the banking-specific rule sets of the fintus platform.

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