Document Classification
In banking, document classification typically refers to the process of organizing information into logical categories. Classifying by document type (i.e., loan agreements, insurance documents, vendor invoices, etc.) is especially beneficial for financial institutions.
Document Classification Workflows in Banking
Information management practices vary, but financial institutions often rely on one or more of following classification workflows:
- Paper-based workflows, such as adding a borrower’s financial statement into the correct “tab” of a commercial loan file.
- Email-based workflows, such as saving all vendor receipts in a dedicated inbox folder.
- Network drive workflows, such as storing all applicants’ resumes in a centralized location on the financial institution’s network drive.
- Enterprise content management (ECM) system workflows, such as using metadata from a loan origination system (LOS) to identify the type of document. Metadata could also be assigned with the help of AI (artificial intelligence), OCR (optical character recognition), or manual entry by a knowledge worker.
Benefits of Document Classification
Implementing effective document classification workflows can bolster internal collaboration and unlock efficiencies due to:
- Streamlined access to information: Rapidly filtering through thousands of electronic records and identifying specific information makes life easier for employees. Accurate classification is also a precursor for enabling a two-way document exchange with account holders.
- Reduced manual effort: Some ECM systems, such as FASTdocs from Alogent, offer prebuilt workflow capabilities that reduce or eliminate steps in downstream processes. For example, classifying an invoice and assigning relevant metadata can initiate a routing and approval workflow that bypasses manual sharing via email or interoffice mail.
- Automated retention rules: Not every document at a bank or credit union follows an identical retention schedule. Leveraging automated retention rules in tandem with a scalable document classification workflow offers a viable solution to this challenge. For example, FASTdocs users can automatically apply template-specific retention rules as documents enter the system.
Explore FASTdocs and modernize your financial institution’s document classification workflow. Access additional banker resources on Alogent’s Innovation Hub.
