The Challenge
The partner bank faced significant challenges with its manual cheque-clearing process, which was slow, resource-intensive, and prone to errors. The bank received a high volume of cheques—3-5 lakh per day—that required multiple levels of manual verification. This intricate process, conducted primarily during odd hours, resulted in delays and human errors, affecting accuracy and efficiency.
- Slow Processing Times
The manual verification process led to delays in cheque clearance, frustrating customers who expected faster service.
- High Error Rate
The reliance on human verification increased the likelihood of errors, including discrepancies in cheque details and incorrect signature matches.
- Manual Validation
The need for extensive manual checks for various fields like MICR, amount, and signatures added to the complexity, making the process time-consuming and inefficient. - Operational Bottlenecks
The manual review of a high volume of cheques during non-business hours created bottlenecks, limiting the bank’s ability to process cheques efficiently and scale its operations.
20+
cheques processed in a second
55%
cost saved in processing
Solution
To address these challenges, the Bank partnered with Arya AI to deploy an AI-based cheque-clearance system to automate the verification process, significantly reducing processing time and errors. Arya AI’s solution combined six AI models trained on historical cheque data and signature snippets to extract and verify information accurately.
Key highlights of the Arya AI solution include:
- Handwritten Data Extraction
AI models extracted all handwritten details from the cheque, including the amount and account number.
- Signature Verification
A highly precise signature verification model matched the cheque signatures with the organization’s database, reducing fraud.
- Business Rule Validation
Information extracted from the cheques was validated against predefined business rules, ensuring accuracy before clearance.
Results
The implementation of Arya AI’s cheque-clearance system delivered remarkable improvements:
- Increased Processing Efficiency
The AI system handled vast volumes of cheques with minimal human intervention, drastically speeding up the process.
- Enhanced Accuracy
The system generated confidence scores for each field, ensuring precise predictions and significantly reducing manual errors.
- Reduced Fraud
The advanced signature verification model, which matches cheque signatures against the organization's database, led to a notable decrease in fraud cases.
- Operational Excellence
The automation set new standards for cheque processing efficiency, enabling the bank to handle high volumes while easily maintaining security and accuracy.
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