Accelerating Intelligent Document Processing with IBM Datacap
A large financial services organization needed to modernize how it ingested, validated, and processed massive volumes of documents—including loan applications, KYC forms, invoices, and customer correspondences. Manual document handling created delays, errors, and compliance risks.
By implementing IBM Datacap with Nexright, the organization built an automated, intelligent document capture and classification system. The solution transformed how documents were scanned, digitized, extracted, and routed—resulting in faster processing, improved accuracy, and enhanced regulatory compliance across business units.
Business challenge
The organization relied on heavily manual processes to capture and process documents submitted through branches, customer portals, email inboxes, and third-party systems. These processes were labor-intensive, error-prone, and unable to scale with increasing customer volumes.
Key challenges:
- High manual effort in reviewing and entering data from documents.
- Slow turnaround times for loan approvals, customer onboarding, and service requests.
- Inconsistent accuracy, leading to rework and operational inefficiencies.
- Compliance risks arising from missing, mishandled, or inaccurate documentation.
- Lack of standardization across multiple business units and geographic locations.
- Limited integration with downstream systems such as core banking, CRM, ERP, and workflow engines.
The organization required a centralized, intelligent, and scalable document automation solution capable of reducing processing time, improving extraction accuracy, and ensuring compliance across the document lifecycle.
Solution
Partnering with Nexright, the organization deployed IBM Datacap as the foundation of its intelligent document processing platform. Datacap automated document capture, classification, extraction, validation, and routing across departments.
Solution Highlights:
- AI-Enabled Document Classification
Datacap’s machine learning–based recognition automatically categorized diverse document types (KYC forms, IDs, invoices, statements) with high accuracy. - Automated Data Extraction
Extracted key fields using OCR, NLP, and configurable rules—reducing manual data entry and improving consistency. - Straight-Through Processing (STP)
Integrated validation rules and business logic enabled documents to flow directly into back-office systems without human intervention. - Fraud and Compliance Controls
Enforced mandatory document checks, completeness validation, and audit trails aligned to regulatory frameworks. - Workflow Integration
Seamlessly connected with ERP, CRM, IBM Cloud Pak for Business Automation, and third-party systems for end-to-end automation. - Omnichannel Capture
Enabled ingestion from scanners, mobile uploads, email, portals, and legacy systems—centralizing all document pipelines.
Solution components
- IBM Datacap
- IBM Cloud Pak for Business Automation
- IBM Business Automation Workflow (optional integration)
Intelligent Document Classification
AI-driven recognition automatically identifies document types, even when layouts vary. This improves accuracy, reduces manual review, and accelerates processing.
Automated Data Extraction & Validation
Extracts structured and unstructured data using OCR, NLP, and rule-based validation—ensuring high-quality data before entering downstream systems.
Scalable Processing Engine
Handles millions of documents annually with elastic scaling across on-premises and hybrid cloud environments.
Result
- Reduced document processing time by 70%, enabling faster customer onboarding and loan approvals.
- Improved data accuracy by 90% through automated extraction and rule-based validation.
- Cut operational costs by 45% by reducing reliance on manual data entry teams.
- Enabled real-time compliance with digital document trail and auto-validation of mandatory fields.
- Accelerated automation adoption by integrating with IBM Cloud Pak for Business Automation and downstream core systems.
- Increased employee productivity by eliminating repetitive document-handling tasks.
Nexright and IBM Datacap transformed how we process documents across our enterprise. Automated capture and extraction dramatically reduced turnaround times and compliance risks. What once required hours of manual effort now happens in minutes—with far higher accuracy.
— Head of Operations, Leading Financial Services Organization