MACHINE LEARNING FOR DOCUMENT PROCESSING IN FINANCE
Challenge
Digitize finance company’s document management process with cutting-edge technologies.
Solution
Development of a machine learning-powered document processing solution.
Tech stack
Java, AWS, React.
Client
As a financial company operating in a fast-paced environment, our client faced the challenges of managing a vast amount of paperwork. This included handling loans, invoices, and critical client documents on a regular basis. Realizing the transformative potential of machine learning, they embarked on a journey to leverage this technology and revolutionize their operations.
Challenge
The client encountered substantial difficulties with their manual document processing system. The overwhelming volume of paperwork consumed a significant portion of employee time, ranging from 41 to 60% of their workweek, resulting in inefficiencies and errors. Moreover, the client faced obstacles in automating their data processes. A considerable amount, up to 80%, of their valuable information was trapped in unstructured formats such as business documents, emails, photos, and PDF files. This presented obstacles to their digital transformation initiatives and hindered their ability to adapt to evolving market conditions and meet compliance requirements. In light of these challenges, the client sought a transformative solution to automate data extraction, enhance efficiency, and improve compliance. By leveraging machine learning-based document processing, they aimed to streamline their workflows, reduce processing time, increase accuracy, and provide reliable services to their customers and stakeholders. This approach would enable the client to unlock the potential of their data, accelerate their digital transformation journey, and stay competitive in the dynamic finance sector.
Team
1
Project manager
1
Business Analyst
1
UI/UX designer
1
Team Leader
1
Data scientist
4
Software developers
3
QA engineers
1
DevOps engineer
Process
1 From Initiation to Discovery
As the preferred technology partner, Modsen was selected through a competitive tender process to develop a document processing solution utilizing machine learning. This choice was based on our expertise, competitive pricing, and technical excellence, as well as our comprehensive understanding of the finance sector. With the guidance of our highly knowledgeable CTO, we embarked on this transformative project with the aim of delivering exceptional results.
1.1. Forming the project team: Key roles and responsibilities
Modsen wasted no time assembling a proficient team of experts to drive the implementation of the machine learning-based document processing solution. Our meticulous team selection process allowed us to create a harmonious and proficient group, tailored to meet the specific needs of the project. With a project manager and business analyst on board, we ensured seamless coordination and collaboration, maximizing the project’s success and delivering exceptional outcomes. The project manager took the reins of overall project coordination, ensuring seamless collaboration among team members and effective communication with the client. They skillfully managed timelines, resource allocation, and kept the project on track. The business analyst worked closely with the client, delving deep into their specific requirements and document processing workflows. Leveraging their expertise in the finance sector, they conducted a thorough analysis of existing processes, identifying pain points, and determining key success factors for the solution. As the project continues, the core team will be expanded to include additional key professionals, each bringing their unique expertise to ensure a comprehensive and successful implementation. These professionals include a UI/UX designer, DevOps engineer, data scientist, software developers, QA engineers, and a team leader. Their collective contributions will enhance the project’s capabilities and enable us to deliver a high-quality solution.
1.2. Orchestrating effective communication: Channels for collaboration
Recognizing the significance of effective communication and collaboration, Modsen established clear channels from the outset. Regular meetings, both internal and with the client, were scheduled to keep all stakeholders informed and engaged throughout the project. These meetings served as a platform for discussing progress, addressing challenges, and making informed decisions to keep the project on track.
1.3. Defining project parameters, including deadlines and budget
In order to maintain project focus and efficiency, Modsen diligently defined project parameters, including deadlines and budgetary constraints. This proactive approach enabled the development of a comprehensive project plan, outlining key milestones, deliverables, and resource allocations. Adhering to agreed-upon timelines and budget ensured smooth progress throughout the project lifecycle. The meticulous project setup laid the groundwork for subsequent stages of development, testing, and deployment, propelling the client towards a transformative path of streamlined and efficient document processing in the finance sector.
1.4. Understanding requirements and compliance
Modsen comprehensive reviewed the client’s existing document processing workflow, delving into the specifics of document types, required data extraction fields, and compliance rules and validation criteria. Thorough analysis served as the basis for developing a comprehensive project plan, outlining milestones, timelines, and resource requirements in alignment with the client’s needs and compliance regulations.
1.5. Time and resources
The project plan included milestones to guide its progress, reflecting key stages of development, testing, and deployment for a systematic approach to execution. Timelines were essential, setting clear deadlines for each milestone to maintain momentum, allocate resources efficiently, and avoid delays. Resource requirements were also carefully considered, ensuring appropriate allocation of personnel, equipment, and technologies to support successful implementation. The comprehensive project plan served as a roadmap, aligning team and client towards shared objectives and deliverables. It provided a clear vision of the project’s scope, fostering collaboration and driving progress.
2 From Development to Release
Establishing an optimal infrastructure
The development team utilized AWS to establish a scalable and secure infrastructure for the document processing solution. This involved configuring virtual machines, storage, and networking components. The infrastructure was carefully designed to meet the solution’s performance and security requirements. By leveraging AWS services, Modsen ensured reliable data storage, seamless connectivity, and high availability. This robust infrastructure laid the groundwork for integrating advanced machine learning technologies, resulting in exceptional document processing outcomes.
Efficient architecture for document processing
A robust and efficient architecture was designed to handle the document processing workflow. Although our team is unable to share the specific details of the architecture due to non-disclosure agreements (NDA), we have provided a common scheme below as an illustration. The system utilizes AWS Machine Learning (ML) to leverage advanced algorithms for extracting key information from documents. Integration with the client’s existing systems and databases enables seamless data transfer and validation.
Agile approach to code, QA, and deployment
Modsen adopted an Agile development methodology, breaking the project into sprints. Regular iterations were conducted to develop, test, and refine the document processing solution. Continuous integration and deployment practices ensured rapid feedback and quick turnaround time for bug fixes and feature enhancements.
Iterative progress demonstrations
The team conducted regular progress demonstrations during the development process to keep the client informed and gather valuable feedback. These iterative demos facilitated early validation of features and ensured that the solution remained aligned with the client’s expectations.
Third-party audit and certification
Furthermore, the document processing solution underwent a comprehensive third-party audit and certification process to ensure compliance with industry standards, security protocols, and regulatory guidelines. This step not only validated adherence to these requirements but also addressed specific security regulations in the client’s country. For instance, GDPR compliance was essential due to their European customer base. Additionally, the client required integration with IDP processing solutions that meet GDPR, ISO, or SOC2 compliance to safeguard sensitive data and uphold data governance standards. The solution successfully met these compliance requirements, providing the client with reassurance and peace of mind.
Acceptance Testing
Thorough acceptance testing was conducted in close collaboration with the client to validate the accuracy and performance of the document processing system. Real-world documents were utilized to assess the solution’s data extraction accuracy, compliance checks, and seamless integration with existing workflows. This collaborative testing approach ensured that the solution met specific requirements and effectively addressed document processing needs.
Transitioning to Production
With the successful completion of acceptance testing and attainment of necessary certifications, the document processing system was ready for release. Modsen facilitated a seamless transition by providing comprehensive documentation, including technical and business analysis documents, along with a user guide. In addition, our team offered training sessions to ensure the client’s users were equipped to utilize the solution effectively.
Solution Highlights
We developed an advanced document processing solution with machine learning capabilities to automate data extraction, processing, and organization from a variety of documents. It utilizes state-of-the-art machine learning algorithms to analyze document content, extract relevant information, and facilitate efficient data handling. Key ML techniques and functionalities incorporated into the solution include:
Optical character recognition (OCR):
The solution leverages OCR technology to convert scanned images and physical documents into machine-readable text. This enables the digitization of documents and facilitates faster and more accurate data extraction.
Information extraction:
Machine learning enables automatic extraction of valuable data from documents, eliminating the need for manual data entry. The system can identify and extract specific fields, including names, addresses, dates, and other relevant information.
Data validation:
ML algorithms are employed to validate the accuracy and consistency of data within documents. This involves cross-referencing data with external sources, performing data consistency checks, and identifying potential errors or discrepancies.
Document classification and categorization:
The solution utilizes ML models to automatically classify and categorize documents based on their content, type, or purpose, resulting in efficient document management and enabling streamlined retrieval and organization.
Document review and approval automation:
ML capabilities automate the review and approval processes by identifying anomalies, inconsistencies, or missing information in documents. This expedites approvals while ensuring compliance with business rules and standards. In addition, the solution prioritizes data accuracy and security in document management workflows. We employed robust encryption methods, secure authentication mechanisms, and role-based access controls to protect sensitive information and prevent unauthorized access.
Result
- The ML-powered document processing system delivered remarkable results, revolutionizing the way data is handled and processed. With an accuracy rate exceeding 99%, it eliminated data entry errors, ensuring reliable and consistent output. This breakthrough not only saved valuable time but also enhanced data integrity, allowing the client’s organization to make critical decisions based on accurate information.
- In terms of cost savings, the solution showcased its capabilities by reducing operational costs by 60-70%. Through automated data extraction and eliminating duplicates, manual processes were streamlined, reducing the need for human resources in low-level tasks. This optimization enabled employees to shift their focus to strategic initiatives, enhancing productivity and operational efficiency.
- The solution’s impact on efficiency was extraordinary, boosting productivity by 9 times. By seamlessly integrating with existing business systems, it rapidly ingested, categorized, and classified data, handling unstructured, semi-structured, and structured documents of various formats at scale. This automation streamlined workflows and eliminated time-consuming manual tasks, empowered the organization to achieve more in less time.
- The processing time was dramatically reduced to an impressive 30 seconds, enabling near-instantaneous data extraction and processing. This remarkable speed allowed the client to make timely decisions, respond quickly to customer needs, and stay ahead in a competitive landscape.
- Furthermore, the system fostered collaboration and accessibility within the organization. By storing data in the cloud and eliminating manual data collection and organization, it facilitated easy access to information and encouraged cross-departmental collaboration. This not only enhanced teamwork but also improved overall operational efficiency.
- Overall, the ML-powered document processing solution brought unparalleled accuracy, significant cost savings, improved efficiency, and streamlined processes. It empowered the client’s finance organization to leverage the power of machine learning and achieve new levels of productivity, data integrity, and business success. We are delighted to have played a role in this transformative journey.
99%
Accuracy
60-70%
Cost Reduction
9x
Productivity
30S
Processing Time