Automated Bank Reconciliation with OCR & AI - Achieve 3x Faster Turnaround
Automated Bank Reconciliation with OCR and AI, Achieving 3x Faster Reconciliation Turnaround
With automation, we successfully reduced manual effort by 80% & improved accuracy by 99.4%. The client saw a 60% increase in transaction processing capacity without additional staffing & scaled operations to handle 5x more transaction volume seamlessly.
Industry
Financial Services
Country
India
Project Duration
16 Months
System Architecture
Python-Based Microservice & Celery-Based Backend
Team Size
5 Experts
What Is Bank Statement OCR & How It Simplifies Financial Data Extraction with AI & Robotics?
Bank Statement OCR (Optical Character Recognition) is a technology that converts scanned or digital bank statements into machine-readable data. This process automates the extraction of critical financial information, facilitating tasks like reconciliation, auditing, and compliance.
Key Data Extracted by Bank Statement OCR:
Account Holder Information: Name, address, and account number.
Bank Details: Bank name, branch location, and routing number.
Statement Information: Statement number, period covered, & closing balance.
Transaction Details: Date, description, debit, credit, and balance.
Our Client’s Project Challenges
Challenges Our Client Faced
in Manual Bank Statement Reconciliation
Manual bank statement reconciliation presented significant challenges for our client, causing inefficiencies and errors in their financial processes. Some of the key challenges included:
Human Errors
Our client faced frequent issues with manual data entry, which led to errors such as transposition mistakes, omissions, and duplicate entries, impacting the accuracy of their financial records.
Lack of Standardization
Inconsistent reconciliation practices across different departments led to discrepancies, creating challenges in maintaining uniformity and compliance with internal and regulatory standards.
Time-Consuming Processes
The reconciliation process was labor-intensive for our client, especially with high transaction volumes. This caused delays and placed a strain on their resources, hindering timely financial reporting.
Limited Fraud Detection
Our client’s manual processes struggled to effectively detect fraudulent activities, as they lacked the ability to analyze large datasets comprehensively, leading to potential risks in financial integrity.
Our Client’s Project Solution
Step-by-Step Guide to Automating Bank Statement
Processing with Webelight Solutions
We offered a comprehensive approach to automating bank statement processing, integrating Optical Character Recognition, Artificial Intelligence, & Robotic Process Automation to streamline financial workflows for our client.
01
Secure Email Integration
We developed a secure pipeline to automatically fetch bank statement attachments from emails, ensuring accurate and timely data retrieval.
02
Advanced Data Extraction, OCR & AI
Using Azure AI & Google Gemini LLM, we utilized OCR technology to extract transaction details, like UTR numbers, dates, amounts, & descriptions.
03
Data Structuring and Validation
The extracted data was structured and validated with AI algorithms, ensuring consistency and accuracy with internal payment records.
04
Automated Reconciliation Logic
We implemented logic to cross-check the extracted data against payment records, automatically flagging discrepancies for review and further action.
05
Seamless Database Integration
Verified transactions were updated automatically in the client's SQL/NoSQL database, ensuring real-time accuracy with minimal manual effort.
06
Discrepancy Detection and Reporting
Our solution flagged discrepancies and generated reports, helping the finance team address issues quickly and maintain financial integrity.
07
Continuous Monitoring and Optimization
We set up continuous monitoring to evaluate system performance, applying optimizations based on user feedback and changing requirements.
08
Automation of Transaction Updates
We integrated automatic notifications to alert the finance team of completed reconciliations, discrepancies, or manual intervention needs.
Webelight Solutions for Your Automated Bank Reconciliation?
Expertise in OCR, AI, and automation technologies
Customizable solutions tailored to your business needs
Scalable to handle high transaction volumes
Fast, secure, and seamless integration with existing systems
Ongoing support and maintenance for continuous optimization
Business Impact
Webelight’s Automated Bank Statement Processing
Delivered 20% ROI Increase
Webelight Solutions delivered significant business value through the automation of bank statement reconciliation. By implementing an end-to-end automated solution powered by OCR and AI, we achieved the following outcomes for our client:
80% Decrease In Human Involvement
Webelight’s automated bank statement processing eliminated the need for manual data entry, reducing human effort and errors. This allowed the client’s finance team to focus on higher-value tasks.
95%+ Data Extraction Accuracy
Our solution ensured that the extracted transaction data was accurate, eliminating the common issues of data entry mistakes such as transposition errors or omissions. The client’s financial records became more reliable, and their reconciliation process was streamlined.
3x Speed Increase In Payment Verification
With automation in place, the reconciliation process was significantly accelerated. Our client was able to verify payments faster, improving cash flow management and minimizing delays in financial reporting.
60% Uplift In Transaction Processing
By automating repetitive tasks and reducing reliance on manual labor, Webelight Solutions helped the client improve overall operational efficiency. The finance department was able to handle a higher volume of transactions without additional resources.
99.4% Accuracy In Anomaly Detection
Webelight’s AI-powered solution enabled the client to detect discrepancies and potential fraud faster, ensuring compliance with financial regulations and reducing risks associated with financial discrepancies.
5x Scalability Without Performance Loss
The automated solution we implemented can easily scale as the client’s business grows. The system can handle a larger volume of bank statements and transactions without sacrificing performance or accuracy.
Potential Banking Applications
Use Cases
Of Automated Bank Reconciliation
Automated bank reconciliation solutions, like the one delivered by Webelight Solutions, have broad applications within the banking and finance sectors. Below are some potential banking applications for automated bank reconciliation:
Core Banking Operations
Automation significantly improves core banking functions by streamlining the reconciliation of transactions across various accounts, ensuring that balances are accurate and up to date. This enhances financial accuracy and reduces the time spent on manual tasks.
Treasury Management
With automated reconciliation, treasury departments can efficiently reconcile transactions involving large sums of money, such as payments to vendors and internal fund transfers. This helps to minimize discrepancies and improve liquidity management.
Accounts Payable/Receivable Automation
Automated bank reconciliation helps businesses manage their payables and receivables by matching incoming payments and outstanding invoices. This reduces payment delays, ensures faster collections, and optimizes cash flow.
Fraud Detection And Risk Management
By utilizing AI-driven algorithms, automated reconciliation solutions can flag discrepancies that may indicate fraudulent activities. This boosts a bank’s ability to prevent fraud in real-time and minimizes the risk of financial loss.
Regulatory Compliance
Automated reconciliation ensures that all transactions are accurately matched and reconciled, helping banks maintain compliance with industry regulations. This reduces the risk of non-compliance penalties and improves audit readiness.
Financial Reporting And Auditing
Automated systems ensure that data is accurately captured and reconciled, reducing errors in financial reporting. This improves the quality of financial statements and simplifies the audit process, ensuring transparency and trust in the bank’s financial records.
FAQs
Common Questions
We've compiled a list of frequently asked questions with clear and concise answers.
Bank Reconciliation with Automation
Experience faster, more accurate bank reconciliation with Webelight’s automation solution. Let us show you how OCR, AI, and robotics can improve your financial operations.
Our Work
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