Book a demo

For full terms & conditions, please read our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

5 Applications of Automated Data Extraction in Financial Services

Miranda Hartley
August 31, 2023

The real-world applications of AI-powered automated data extraction are diverse. For businesses in the financial services sector, harnessing this technology is now easier than ever. In this article, we’ll cover five of its most promising applications and how they can benefit your organisation. 

1. Data Enrichment and KYC

Know Your Customer (KYC) is an essential process in financial services. Categorising, segmenting and appending data allows organisations to avoid risk by identifying high-risk individuals or entities. A thorough KYC process can prevent financial crimes and aid compliance with anti-money laundering (AML) and Counter-terrorist Financing (CTF) regulations.

Validating and verifying identity for KYC involves data enrichment —adding customer data from external sources. Manually enriching data, however, is time-consuming and cost-prohibitive. Case in point, in 2018, the Royal Bank of Scotland discovered that they were spending hundreds of thousands of work hours on KYC. That’s when Evolution AI stepped in to automate KYC for them. 

2. Risk Management and Compliance

AI models can be trained to identify information specific to risk compliance, such as legal clauses and contractual terms.

Additionally, AI algorithms can validate extracted information against regulatory standards or pre-existing databases. Take Companies House, for instance. By analysing a real-time flow of data, AI technology can identify and flag potential risks for a compliance team.

As a further capability, fraud detection is an integral application of AI-based risk management. Pattern recognition and anomaly detection enable AI to identify fraud. Intelligent data algorithms can reconcile accounts with external sources, i.e. confirmation from payment processors or establish a baseline behavioural analysis.

3. Credit Assessment and Underwriting

Personal and business financiers alike are increasingly deploying technology to facilitate instant loan origination. Leading financier, YouLend, for example, uses Evolution AI’s proprietary technology for instant credit decisioning or, as Head of Product, Jessica O’Hare phrased it, “to automate [the] review of documents as they come in.”

In the past, instant loan underwriting and decision-making would have seemed like a pipe dream. The complexity of the due diligence processes, however, is no match for well-trained AI technology.

AI binds multiple facets of underwriting, eliminating the possibility of human error—from the initial gathering of data (from financial statements, bank statements, invoices and so forth) to comprehensive data analysis. 

Superior AI technology can also flag exceptions for manual management. It’s important to remember that while AI is an increasingly helpful tool in financial services, it can’t replace the expertise of your employees.

4. Extracting from Historical Documents

AI data extraction software can now capture information from any document, regardless of its length or format. For companies with cabinets full of historical documents, AI offers an unprecedented opportunity to unpack and unlock data insights and more.

As our CTO demonstrates, AI-powered data extraction technology can even extract from poor-quality images of crumpled documents. Watch the full demonstration here.

5. Predictive Forecasting and Analysis

Predictive forecasting based on historical or current data is an emerging technology. AI can extract from data lakes by unlocking insights and producing forecasts that will assist enterprises in making informed decisions.

In other words, AI is a useful tool for extracting outdated, unstructured information and converting it into valuable insights about future outcomes.

The technology works by analysing causal relationships between data points, which yields patterns and trends. Overall, predictive forecasting enhances business agility by identifying opportunities earlier and avoiding potential risks — giving companies that use it a competitive edge.

Benefits of Predictive Forecasting Across Financial Sectors

Enhancing Information Capture with Evolution AI

AI solutions for data extraction are versatile, and each use case is different. You’ll want to start by considering the benefits you’d like to reap from an intelligent data extraction technology. Equally crucial to ensuring a positive outcome is selecting a provider that understands a typical use case in your industry.

If you’re looking for award-winning data extraction technology, we invite you to book a demo with our team at Evolution AI or email us at hello@evolution.ai for more information.

The real-world applications of AI-powered automated data extraction are diverse. For businesses in the financial services sector, harnessing this technology is now easier than ever. In this article, we’ll cover five of its most promising applications and how they can benefit your organisation. 

1. Data Enrichment and KYC

Know Your Customer (KYC) is an essential process in financial services. Categorising, segmenting and appending data allows organisations to avoid risk by identifying high-risk individuals or entities. A thorough KYC process can prevent financial crimes and aid compliance with anti-money laundering (AML) and Counter-terrorist Financing (CTF) regulations.

Validating and verifying identity for KYC involves data enrichment —adding customer data from external sources. Manually enriching data, however, is time-consuming and cost-prohibitive. Case in point, in 2018, the Royal Bank of Scotland discovered that they were spending hundreds of thousands of work hours on KYC. That’s when Evolution AI stepped in to automate KYC for them. 

2. Risk Management and Compliance

AI models can be trained to identify information specific to risk compliance, such as legal clauses and contractual terms.

Additionally, AI algorithms can validate extracted information against regulatory standards or pre-existing databases. Take Companies House, for instance. By analysing a real-time flow of data, AI technology can identify and flag potential risks for a compliance team.

As a further capability, fraud detection is an integral application of AI-based risk management. Pattern recognition and anomaly detection enable AI to identify fraud. Intelligent data algorithms can reconcile accounts with external sources, i.e. confirmation from payment processors or establish a baseline behavioural analysis.

3. Credit Assessment and Underwriting

Personal and business financiers alike are increasingly deploying technology to facilitate instant loan origination. Leading financier, YouLend, for example, uses Evolution AI’s proprietary technology for instant credit decisioning or, as Head of Product, Jessica O’Hare phrased it, “to automate [the] review of documents as they come in.”

In the past, instant loan underwriting and decision-making would have seemed like a pipe dream. The complexity of the due diligence processes, however, is no match for well-trained AI technology.

AI binds multiple facets of underwriting, eliminating the possibility of human error—from the initial gathering of data (from financial statements, bank statements, invoices and so forth) to comprehensive data analysis. 

Superior AI technology can also flag exceptions for manual management. It’s important to remember that while AI is an increasingly helpful tool in financial services, it can’t replace the expertise of your employees.

4. Extracting from Historical Documents

AI data extraction software can now capture information from any document, regardless of its length or format. For companies with cabinets full of historical documents, AI offers an unprecedented opportunity to unpack and unlock data insights and more.

As our CTO demonstrates, AI-powered data extraction technology can even extract from poor-quality images of crumpled documents. Watch the full demonstration here.

5. Predictive Forecasting and Analysis

Predictive forecasting based on historical or current data is an emerging technology. AI can extract from data lakes by unlocking insights and producing forecasts that will assist enterprises in making informed decisions.

In other words, AI is a useful tool for extracting outdated, unstructured information and converting it into valuable insights about future outcomes.

The technology works by analysing causal relationships between data points, which yields patterns and trends. Overall, predictive forecasting enhances business agility by identifying opportunities earlier and avoiding potential risks — giving companies that use it a competitive edge.

Benefits of Predictive Forecasting Across Financial Sectors

Enhancing Information Capture with Evolution AI

AI solutions for data extraction are versatile, and each use case is different. You’ll want to start by considering the benefits you’d like to reap from an intelligent data extraction technology. Equally crucial to ensuring a positive outcome is selecting a provider that understands a typical use case in your industry.

If you’re looking for award-winning data extraction technology, we invite you to book a demo with our team at Evolution AI or email us at hello@evolution.ai for more information.

Share to LinkedIn