© 2010 IBM Corporation © Copyright 2011 IBM Corporation IBM Enterprise Capture

© 2010 IBM Corporation

© Copyright 2011 IBM Corporation

IBM Enterprise Capture

© 2011IBM Corporation© Copyright 2011 IBM Corporation

Agenda

■Enterprise Capture Overview & Relevance In Banking

■DataCap Encapture Enterprise Capture Solution Overview

■Demonstration

© 2011IBM Corporation

Fixed Geometry

Variable Geometry

Document Capture

Intelligent Document

Recognition

Intelligent Process

Optimization

Val

ue/

Rel

evan

ce t

o C

ust

om

er

Time

Scan to an Archive

Archive business documents

Auto Decision Services

Simplify or automate process decision points

Capture to aProcessInitiate document centric processes

Content Initiated Process Automation

Simplify or automate document centric processes

Workflow & Rules Mgmt

Unconstrained

Enterprise Capture Evolution & Value – IBM’s Vision


Slide 4

New Account Enrollment• Speed application

processing efficiency

Loan and Mortgage Processing• Reduce cost and

increase compliance

Card and Payment Services•Correct and timely payments processed

Risk, Fraud & Compliance•Automate compliance controls

Customer Service / Correspondence•Greater customer responsiveness

New Account

Enrollment

New Account

Enrollment

Loan and Mortgage

Processing

Loan and Mortgage

Processing

High Efficiency

Processing

High Efficiency

Processing

Card and Payment Services

More Details for Better

Risk Analysis

Customer Service

Greater customer

responsiveness,

visibility & accuracy

Customer Service

Greater customer

responsiveness, visibility & accuracy

Risk, Fraud & Compliance

Automation of Internal

Controls

Enterprise capture Solutions Support Many Areas in the Bank


IBM Enterprise Capture Solution For Banking

Front office

Automate Collection at the Interaction Channel - Improve Customer Service

• Accelerated handling of high value customer documents

• Immediate response

• More value time to sell

• Transparency of data ingestion at each touchpoint

Back office

Increased Operational Efficiency

• Transform data into process ready information • Triggering workflows

• Application processing• Approvals, confirmations

• Deliver to where needed• Reduced processing time • Increased data accuracy

• Higher customer satisfaction – and retention• Faster closing of business• Higher closing rate – of profitable business• Reducing cost - across the entire organisation• Reducing risk – from data entry to archival• Supporting Compliance

Account Opening

Loan Origination

Mortgage Processing

FundsProcessing

Credit CardApplication

Invoice Processing

And more

Slide 5 Enterprise Capture in Banking


Banks are trending to a Common Ingestion Service -

Slide 6

Decide & Transform

Automate/Classify&

Understand

Process/BPM

RM Database

ECM

Portal ERP/LOB/CRM

What do I do with it?What is it?

Important Takeaways

1) It is about automating process (manual > reduce touch> touch-less/automated)

2) It is about leveraging the content and metadata to trigger downstream processes as early as possible in the cycle, with accurate, compliant data

3) It is about reducing cycle times

Signature Card

Loan appl.

Mortgage appl.

New account

Correspondence

Dispute

Credit Card

Paper

Fax

Email

e-form

XML

Lotus/Office

PDF

Single intake pipe to transform content & make it available to the relevant business process

Input Channels

DocumentTypes

Enterprise Capture Processing Delivery End Points


Doc PackageOK ?

status = R

R,P,Q

Classification and Separation (Income Docs, Assett, Docs, Debt, Info, Application Form)It can be Manual / Barcoded

YES

Single Pipe Activity + Transformation

KEY

Workflow Control + LOS

Export to workflow/ backend

Exchange Activity

Loan and Customer Specific Rules and Info (Credit Score, DTI, Ext.

Info, Appraisal)Generate Doc Cheklist

Alert rules: channel, template, content

(Doc request, Loan approval)

Document Collection

Email

Paper

Fax

Self Serve Portal

Web Form

Alerting forTrailing

Documents

Trailing Docs?

Generate New Loan ID

And type in data and status

NO

Request / Status Approval with LID

Barcoded

Doc Processing FlowChart

Basic FlowChart for Doc Processing

External Data CollectionStatus = Q

Manual Update

Need data from Borrower ? Status = P

Retrieve actual documents for that

LID with statusAnd Manual Update

Loan Status:P = Pending , loan is waiting trailing documents from the BorrowerQ = reQuest , loan is on hold waiting for info from external sources R = Ready , loan documentation is ready for the approval

Initialize /Update Event

Handler

EscalationTriggered by Event Handler

NO

YES

NO

YES

A Real New?

Check if is a misread

YES

NO

Business Rule Engine / App Logic

OK Notification for Initiator

, -

.

Contract Generation

Enterprise Capture focuses on automation of the Yellow process

steps


IBM Datacap TaskMaster Enterprise Capture


IBM Datacap Taskmaster Capture

■ Production Document Capture Solution• Central (corporate or mailroom-type)• Departmental• Web-based distributed deployments

■ A point and click interface lets business analysts configure advanced solutions that can:

• Input from scanners, MFDs, fax, email and electronic files• Image enhancement to optimize recognition• Automated Document ID and classification• Data extraction using OCR, ICR, OMR, barcode• Validates data including lookups (and retrievals) • Intuitive User Interface for data entry, edit and verification

• Learns from human operator handling of exceptions• Thin and thick clients have same functionality

■ Rich administration tools• Web-based monitoring and administration• Extensive Reporting & Dashboards


Core Capture Concepts in Datacap

1. Collect (Capture)

2. Transform (Make Data Process Ready)

3. Distribute (Trigger Process)


Collect - Capture Data and Documents at the Front End

■ Anywhere• Distributed locations

■ Alternative input sources• MFP• E-mail• Fax

■ Any documents• Un-/structured forms, images, etc.• Paper, fax, electronic format• Outstanding scan quality

Back Office / MailroomBack Office / Mailroom• Production ScannersProduction Scanners

Electronic CaptureElectronic Capture• E-TransactionsE-Transactions• E-Mail & AttachmentsE-Mail & Attachments• FaxFax

Front Office / Branch OfficeFront Office / Branch Office• MFPs/Digital CopiersMFPs/Digital Copiers• Desktop ScannersDesktop Scanners

at Any Locationat Any Location

Kofax for Insurance - Claims Processing


• Signature Specimen• Proof Of Residence• Proof Of ID

Transform - Automating Document Classification

Slide 14 Enterprise Capture in Banking

•Automatic classification - removes the need for document analysis and sorting• Scanned/import documents in un-sorted batches (reduce separator

sheet dependency) • Automatically classify each document by content,layout, fingerprint• Release documents to workflow for routing

•Unique classification approach, learning based systems and rule re-use make IBM Datacap quick to configure and simple to maintain:


Highly Accurate, Labor intensive

Highly Accurate, not always possible

Labor intensive

Good on docs with logos/images

Good for highly varied docs Highly

effective for invoices, bills of lading

Good for mixed docs, similar layouts

Ideal scenario for Enterprise Capture

IBM DataCap’s Unique Approach to Auto Classification


Separation of unstructured documents is a significant expense for a high volume capture system

• Typical ‘structured’ recognition technologies are not applicable• Manual insertion of separator sheets is the primary solution today• 50% of document preparation labor spent sorting documents and inserting

separator pages• IBM DataCap auto-separates documents in the classification phase

Transform – Automated Document Separation

Where does one document stop and the next begin? Where does one document stop and the next begin?

SSPage 16


Transform - Automatic Data Extraction

04/01/60

John Q. Public

123 Main Street

Irvine

CA

•Automatic data extraction - removes the need for manual keying

• Paper documents are simply scanned and Datacap performs one of many forms of OCR

• Powerful extraction technology locates and extracts data from any document

• Extracted data can populate core business applications like SAP


What Sets IBM Apart?

■ Simplicity - Single vendor solution for end-to-end ECM and capture– Simplified purchasing, fewer contracts to manage– Reduced training and administration

■ Attractive, user-based pricing– Competitors charge per page which is excessively costly, inflexible and unpopular for determining

future TCO

■ IBM Datacap’s Rules Execution Engine - none of our competitors offer this capability– Implement in weeks not months - Quickly adapts to change– DataCap Rulerunner Service is a SOA service from applications for in-process capture – SOA architecture enables you to deliver data directly into core business processes “in the capture

process” 150 preconfigured rules and the ability for the LOB to add new rules easily versus Kofax requiring programming to meet special requirements

– Click and key, with fingerprinting, enables the system to learn and automate new document types and fields on the fly – Kofax doesn’t have this capability

■ Integrated central thick-client and distributed Web-client – Scan at one location, verify at another– Administer with thick or thin client

■ Single product for both basic and advanced capture– Scalable from a single client to thousands– Includes advanced data extraction and many capabilities that are expensive add-on modules in our

competitor’s products

This adds up to higher, faster ROI for customers


Enterprise Capture: Automating Mortgage

Processing

Slide 20 Capture: Banking Solutions


Mortgage Processing Impact


MortgageProcessing

MortgageProcessing


Mortgage Processing – traditional approach


NIGO rates 20% - 40%

Complex loan folder contains over 200

document types and over 300 pages

Manual data entry errors result in rework,

additional cost and customer frustrations Average time for

mortgage loan approval is 4 weeks

Loan stays “active” for average of 30 years –

compliance requirementTotal production

operating expenses rose to $5,837 per loan

Average profit of $346 on each originated

loan and decreasing


Mortgage Processing – Automated By Enterprise Capture

Automatically respond back to

customer/broker/MMS for submission errors

Supports compliance initiatives by ensuring documents carry accurate metadata for to meet existing and changing regulatory requirements

Decrease cost to initiate any type of mortgage or loan by automating the intake of critical

documentation and applying business logic

Greatly reduced cycle time and manual effort to resolve NIGO document compliance issues



1. Ease Of Use2. Ease Of Roll Out/Scalability3. Ease of Configuration/Customization4. Security5. Strategy6. Stability/Bugs7. Integration8. Community and Channel9. Support/Maintenance10. Value for Money11. Standards12. Application Development

Validation of IBM DataCap’s LeadershipThe AIIM 2011 Capture Software Product Survey

IBM Datacap Taskmaster Capture scored the highest total score for Transactional Batch Capture based on 12 categories:


Demonstration Scenario’s


Solution Demonstration #1 – Mortgage Processing Automation

Capture Logic (Rules) is applied to ensure documents are IGO

Key Metadata is extracted from fields Validation done by operators on any field-level exceptions

DataCap performs AutomaticClassification and Separation on Mortgage Documents

Page 27

Documents scanned or imported into a “Batch”

Document is released to ECM repository with metadataDatacap can also release metadata directly to BPM, ESB or LOB applications

This demonstration scenario is designed to show DataCap’s “core” enterprise capture capabilities

• Classification

• Separation

• Extraction

• Easy application of Capture “Rules”


Solution Demonstration #2 – Processing Automation – Addressing Document “Variability”

Capture Logic (Rules) is applied to ensure documents are IGO and “other documents” are properly managed


DataCap performs AutomaticClassification and Separation on Multiple Documents- mortgage, correspondence, auto loan application

Page 28

Documents scanned/imported into a “Batch”


This demonstration scenario is designed to show DataCap’s capability to easily handle “variable documents in a batch – supporting the automation necessary at a Shared Service Deployed within many banks

• Advanced Classification



Solution Demonstration #3 – Processing Automation – Process Orchestration & Rules

Capture Logic (Rules) is applied to ensure documents are IGO and based on classification patterns documents with SLA’s are routed accordingly-trailing document for pending mortgage app, auto loan app,


DataCap performs AutomaticClassification and Separation on Multiple Documents- mortgage, correspondence, auto repair estimate,

Page 29

Documents scanned or imported into a “Batch”


This demonstration scenario is designed to show DataCap’s capability to leverage capture rules and process orchestration to enable simple management of documents in a batch with various business SLA’s that would be necessary at a Shared Service Deployed within many banks


• Rules orchestrated processes