--- title: Why IDP Is the Key to Streamlined Loan Processing description: Learn how leveraging automated loan processing through an IDP platform improves the customer experience in banking. image: https://www.resources.knowledgelake.com/hubfs/shutterstock_1673456551%20(1).jpg --- [Skip to content](https://www.resources.knowledgelake.com/blog/3-ways-intelligent-document-processing-improves-loan-processing#main-content) [![knowledgelake-logo](https://www.resources.knowledgelake.com/hubfs/Web%202022/nb-kl-logo.svg) ](https://www.resources.knowledgelake.com/) - [Platform](https://www.knowledgelake.com/platform) - [Industries](https://www.knowledgelake.com/solutions) - [Company](https://www.knowledgelake.com/leadership) - [Resources](https://www.knowledgelake.com/resources) ** [![Contact Us](https://no-cache.hubspot.com/cta/default/5802762/5f620b97-8fa9-46d4-ad80-25f0134602ff.png)](https://cta-redirect.hubspot.com/cta/redirect/5802762/5f620b97-8fa9-46d4-ad80-25f0134602ff) ** - [Platform](https://www.knowledgelake.com/platform) - [Industries](https://www.knowledgelake.com/solutions) - [Company](https://www.knowledgelake.com/leadership) - [Resources](https://www.knowledgelake.com/resources) [![Contact Us](https://no-cache.hubspot.com/cta/default/5802762/5f620b97-8fa9-46d4-ad80-25f0134602ff.png)](https://cta-redirect.hubspot.com/cta/redirect/5802762/5f620b97-8fa9-46d4-ad80-25f0134602ff) ** ** Banks & Credit Unions # 3 Ways Intelligent Document Processing Improves Loan Processing By: [Jason Burian](https://www.resources.knowledgelake.com/blog/author/jason-burian-vp-product-management) | January 12, 2023 [mailto:?subject=Check%20out%20https://www.resources.knowledgelake.com/blog/3-ways-intelligent-document-processing-improves-loan-processing](mailto:?subject=Check%20out%20https://www.resources.knowledgelake.com/blog/3-ways-intelligent-document-processing-improves-loan-processing) If Willie Sutton were a banker looking to improve margins, he'd say "Focus on loan processing because that's where the money is." But if you're still relying on manual, paper-based processes, Willie would say your inefficient processes are robbing you blind.  A recent survey of financial institutions from Cornerstone Advisors found that more than half [lost out on more than 75% of potential loan business](https://thefinancialbrand.com/112423/digital-banking-account-opening-sales-growth/?edigest1), losing two accounts for every loan or new account opened. These would-be borrowers are abandoning slow, cumbersome loan application processes for easier online processes. Today’s borrowers expect quick decisions and minimal hassle. And they want to do it all online. Digital-native FinTechs are giving borrowers a superior experience with easy-to-use web and mobile interfaces, eliminating the hassle of the traditional loan process. The good news is that intelligent document processing (IDP) can help traditional banks level the playing field. With IDP, banks can rethink outdated lending processes to provide a better borrowing experience to customers, gain valuable customer insights, and improve compliance. These are three important ways IDP can help your bank improve loan processing: ## 1. Approve and Close More Loans Faster Approving a loan is a complex process for banks that can traditionally take weeks. This is a dealbreaker for more and more prospective borrowers. With intelligent document processing, banks can approve loans in days by automatically processing all borrower documentation quickly and accurately. At the inception of the application process, AI instantly recognizes every digital or paper document, extracts all relevant data, and keys it into the appropriate application or system. There’s no manual data entry or scanning required. [This high-level of document automation allows banks](https://www.resources.knowledgelake.com/document-automation-financial-services) to approve loans quickly without sacrificing accuracy or needing to go back to the customer for more information. Getting closer to straight-through loan processing, or eliminating the need for paper-pushing and intervention by humans, is key for banks to compete with non-traditional lenders. Approving loans faster increases the likelihood of winning a prospective borrower’s business and enables higher loan volume. This all leads to underwriting better deals.  ## 2. Make Compliance Easier The rules that govern how banks handle and process customer data are extensive and growing. Intelligent document processing makes compliance easier by ensuring that your customers’ personal and financial information is accurately captured, secured, and searchable from the moment you receive it. IDP establishes a system where banks can capture, classify, separate, and organize any and all documents needed for KYC and AML verification. This gives banks the ability to easily retrieve and organize digital documents come audit time. Banks gain a competitive advantage when it comes to satisfying regulations while still protecting sensitive customer information. ## 3. Extract More Data to Better Understand Your Customer The lending process offers an excellent opportunity to get to know your customers better. An IDP platform can help you collect valuable data from customer documents and gain insight into their behavior, including what kinds of products and services they may want now or in the future. For example, an IDP platform can identify certain keywords from a loan application form or related set of documents. This data can then be used to inform future decisions and marketing strategies related to loan products or services offered by your bank. The competition for loan business is cutthroat, and today’s prospective borrowers won’t settle for a lengthy, cumbersome application process. IDP is fast becoming an invaluable tool for traditional banks to compete with FinTechs—not just in the lending arena but across all financial services. To learn more about the role that intelligent document processing plays in customer experience, check out our recent blog post below: ["Customer Experience in Digital Banking Requires Modern Back Office Operations."](https://www.resources.knowledgelake.com/blog/customer-experience-in-digital-banking-modern-back-office-operations)         Tag(s): [Banks & Credit Unions](https://www.resources.knowledgelake.com/blog/tag/banks-credit-unions) ## Other posts you might be interested in View All Posts [ Banks & Credit Unions ** 3 min read ## Why CX in Digital Banking Requires Modern Back Office Operations December 14, 2022 Is your financial institution a Potemkin Village? Read More ](https://www.resources.knowledgelake.com/blog/customer-experience-in-digital-banking-modern-back-office-operations) [ Banks & Credit Unions ** 5 min read ## Automation in Banking Requires a Platform, Not Point Solutions September 12, 2022 In an era of unprecedented competition and customer expectations, banks and credit unions are understandably... Read More ](https://www.resources.knowledgelake.com/blog/automation-in-banking-requires-a-platform-not-point-solutions) [ Banks & Credit Unions ** 2 min read ## KnowledgeLake Earns the FinTech Spotlight November 30, 2022 If you’ve been paying attention, you may have noticed that KnowledgeLake has been steadily expanding our... Read More ](https://www.resources.knowledgelake.com/blog/knowledgelake-aite-novarica-fintech-spotlight) ## Subscribe to the latest updates from KnowledgeLake - [Platform](https://5802762.hs-sites.com/platform) - [Platform](https://5802762.hs-sites.com/platform) - [Synthetic Labor™](https://5802762.hs-sites.com/synthetic-labor) - [Cloud](https://5802762.hs-sites.com/cloud) - Integrations - [Microsoft 365/SharePoint](https://5802762.hs-sites.com/microsoft-office-sharepoint) - [Microsoft SharePoint Premium and Syntex](https://5802762.hs-sites.com/microsoft-sharepoint-premium-syntex) - Industries - Industries - [FinServ](https://5802762.hs-sites.com/enterprise-automation-financial-services) - [Manufacturing ](https://5802762.hs-sites.com/accounts-receivable-automation) - [Higher Ed](https://5802762.hs-sites.com/university-content-management-system) - [Healthcare](https://5802762.hs-sites.com/healthcare-administration-software) - [Insurance](https://5802762.hs-sites.com/insurance-agency-management-software) - [BPO](https://5802762.hs-sites.com/outsourced-services-bpo) - [Digital Gov](https://5802762.hs-sites.com/digital-government) - [Digital Gov](https://5802762.hs-sites.com/digital-government) - Company - [About Us](https://5802762.hs-sites.com/about-us) - [Our Partners](https://5802762.hs-sites.com/partners) - Resources - [Resource Center](https://www.resources.knowledgelake.com) - [Blog](https://www.resources.knowledgelake.com/blog) - [Webinars](https://5802762.hs-sites.com/webinars) - [Newsroom](https://5802762.hs-sites.com/newsroom) - [Support](https://help.knowledgelake.com/hc/en-us) © 2026 KnowledgeLake [Privacy Policy](https://www.resources.knowledgelake.com/privacy) [Security and Compliance](https://www.resources.knowledgelake.com/security-compliance) [314.898.0500](tel:+13148980500) [**](https://www.youtube.com/c/KnowledgeLake/videos) [**](https://www.linkedin.com/company/knowledgelake/)