Mitigate Risks, Maximize Efficiency: Automated Data Collection for Financial Services

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Mitigate Risks, Maximize Efficiency: Automated Data Collection for Financial Services

Gurpreet Arora

@gurpreetarora

September 18, 2024

Data Science & AI Community

The financial services industry is at the crossroads of welcoming a new, digitally advanced era characterized by innovation and speed, leaving behind legacy data collection and verification processes, and even longer processing times. Whether this transformation is fueled by changing customer choices, stricter compliances surrounding data privacy, saturating marketplaces, or uncertain economic environments, one thing is clear—financial leaders and CXOs are feeling the heat to find innovative ways to stay ahead of the competitive curve. And they’ve no other choice but to embrace advanced solutions like smart data transformation to stay in the green amid such a dynamic landscape.

Nearly every financial services company, whether big or small, is a data-producing factory. Plus, there’s an overwhelming volume of data existing outside the organization such as financial transactions with third parties, market reports, customer data, and more. Ideally, all this data must be efficiently gathered, processed, and analyzed to get actionable insights for informed decisions. Additionally, the same data can be stored for audits and used for further processing. Yet, this isn’t the case!

Given the diverse formats and sources of data, silos are inevitable. This makes it difficult for financial leaders to understand their data, what it means, and how it can be used. Thanks to data transformation services, stakeholders can have ready-to-be-analyzed data at their disposal.

Data Transformation Solutions at Glance

Strategically combining human intelligence with AI, ML, RPA, and advanced OCR, data transformation solutions help transform raw, unstructured data, extracted from different sources and in different formats into well-structured and well-formatted datasets. Financial institutions can use this revolutionary approach to give their public and/or proprietary data the due makeover and drive improved decision-making, which ultimately fuels their growth.

Without a doubt, smart data transformation solutions are a life-saving hack for financial institutions to expedite data acquisition and enhance data quality, all while keeping a check on their operational costs.

Using Smart Transformation Solutions for Data Makeover

Financial firms that invest in smart data transformation solutions for data collection, extraction, cleaning, and formatting can gain a plethora of strategic advantages, some of which are listed here:

Automation that Translates to Accuracy

Human error, a frequent challenge in manual data collection and capturing processes, can be easily eliminated using automated data collection solutions. Technologies like Optical Character Recognition (OCR), Optical Mark Recognition (OMR), Intelligent Character Recognition (ICR), Intelligent Document Recognition, (IDR), barcode recognition, etc., can be used to ensure that data is captured and gathered accurately from diverse resources including, websites, social media platforms, documents, and more. This accuracy is particularly beneficial for maintaining the integrity of financial records and complying with regulatory standards.

Stay Audit Ready at Any Given Time

Operating in a highly regulated industry, financial services firms must adhere to data privacy and security rules including, General Data Protection Rules (GDPR), Payment Card Industry Data Security Standards (PCI-DSS), and more. Non-compliance not only leads to significant penalties, but also tarnishes the brand image. Thanks to smart data transformation solutions, leaders can be assured that the data collected, stored, and processed complies with relevant regulations. Above all, using automated solutions for data acquisition provides an audit trail, making it easier to demonstrate compliance during audits and inspections.

Balance Cost and Efficiency

While there might be a significant upfront investment in implementing smart data transformation solutions, long-term benefits far outweigh the initial costs. Automation reduces the need for extensive manual labor and minimizes associated errors that could lead to costly corrections. Additionally, automated data collection solutions can easily handle any volume of data in real-time, which increases operational efficiency for financial institutions, while lowering costs.

Experience Agility Like Never Before

Customers are accustomed to ‘smart’ ways of bill payments and deposits. However, ‘smartness’ at the business-end isn’t a common practice for some financial service companies. By using a strategic mix of next-gen technologies, businesses in the financial services industry can automate processes like bookkeeping, tax compliance, reconciliations, month-end closing, expense management, and more. Thus, financial firms can ‘smartly’ handle large volumes of data in less time, without compromising data quality or integrity. This agility helps in expediting decision-making and offers the upper hand when detecting fraud.

Make Informed Choices Without Delays

The ability to assess the current financial situation instantly is critical in a fast-paced business environment to seize time-sensitive opportunities and remain proactive toward risk management. And smart data transformation solutions precisely serve this purpose for the companies operating in the financial services sector. Automated solutions collect, format, cleanse, and verify data in real-time, expediting the processing and analysis. Armed with insights-driven decisions, financial leaders can capitalize on emerging opportunities, respond to market changes swiftly, and address challenges with agility.

Expanding Business Without Limitations

Scalability is one of the inherent advantages of data transformation solutions, allowing financial institutions to handle growing volumes of data without losing efficiency or accuracy. These solutions can be tailored according to the business needs, enabling financial leaders to collect and process data without any constraints. Plus, this ability to easily expand is important for financial services companies looking to future-proof themselves and scale new heights.

Keep Data Integrity Intact and Fraud at Bay

Dealing with highly confidential financial data, financial companies are expected to counter the risks of fraud, anti-money laundering, and counter-terrorism financing (AML/CTF). Thus, there’s increased pressure on these companies to improve compliance standards across the board. Thanks to automated solutions that come with advanced security features, encryption, secure data transfer protocols, and access controls, data can be safeguarded against unauthorized access and breaches.

Closing Thoughts

Smart data transformation solutions are no less than a magic wand for the financial services sector, especially when there’s economic uncertainty and unpredictable markets. In fact, organizations can improve accuracy, mitigate risks, maximize productivity, enhance efficiency, and ensure compliance without burning a hole in their pockets. Additionally, financial institutions can ensure that their data collection and management processes are robust, efficient, and future-ready against such a dynamic backdrop.

At the same time, the risks of inaction are too great to ignore. So, for the financial services companies that haven’t boarded this bandwagon yet, now is the time to make the move— investing in smart data collection services.

To sum up, financial institutions that embrace data transformation solutions are better positioned to pull ahead of the competitive curve and carve a unique niche in a sector that is evolving quickly.

Read here the original blog: https://www.damcogroup.com/blogs/automated-data-collection-for-financial-services

data collection data collection services data collection companies data collection company automated data collection

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Gurpreet Arora

AVP

Gurpreet heads the ITeS business unit in Damco. He is an experienced professional with a demonstrated history of excelling in ITeS, managing Profit Center Operations with a strong focus on implementing industry best practices, driving operational excellence initiatives and enhancing the customer experience.

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