Straight Through Processing (STP) is a method used by banks and financial institutions to automate the entire process of a transaction from initiation to settlement without the need for manual intervention. The goal of STP is to streamline the transaction processing, reduce errors, reduce paper-based processes, increase efficiency, and minimize costs.

Tech, more specifically, AI can help institutions get there. Artificial intelligence (AI) is becoming increasingly important in the financial industry and more so in straight through processing. How? Here are some ways in which AI helps in STP:

1. Data extraction: AI-powered optical character recognition (OCR) technology can extract relevant data from documents such as invoices, purchase orders (POs), and receipts, making it easier for banks to process transactions automatically without tedious manual intervention.
2. Decision-making: AI algorithms can analyze large amounts of data from various sources to make decisions quickly and more accurately. This enables banks to automatically process transactions, without the need for human intervention or errors in judgement.
3. Fraud detection: Fraud is a risk that runs with STP but AI-powered fraud detection systems can identify suspicious transactions in real-time thereby reducing the risk of fraud and minimizing losses for banks and their customers.
4. Handling special cases: AI algorithms can be trained to identify and handle exceptions in the STP process. For example, if a transaction requires manual intervention, the AI system can automatically flag it for review, reducing the workload of human agents which means more efficient handling of special cases.
5. Predictive analytics: AI can be used to analyze historical transaction data to identify patterns and predict future outcomes. This helps banks to optimize their STP processes, reduce errors and increase efficiency.

In summary, AI helps in STP by automating data extraction, decision-making, fraud detection, exception handling, and predictive analytics. By using AI in their STP processes, financial institutions can improve efficiency, reduce costs, and provide a better customer experience.

When it comes to efficiency, AI can definitely push the boundaries in the finance industry. Celusion’s proprietary platforms can help banks and financial institutions deploy an AI-powered platform without the need for a large-scale digital transformation.

To know more about how Celusion can help deploy the power of AI in your organization, get in touch with us, click here.