Step-Wise Guide to Verify Bank Statements via Document AI

TL;DR

1. Manual bank statement verification is slow, prone to errors, and carries a risk.
2. Docsumo’s Document AI platform automates the process with 99% accuracy.
3. It extracts and validates data from 200+ statement formats in minutes.
4. You can reduce fraud risks, free up team hours, and save on costs.

Verifying bank statements manually can be a challenge: PDFs from multiple banks, inconsistent formats, and hours spent copying data line by line. It’s slow, error-prone, and leaves your business vulnerable to costly fraud.

With an innovative, automated solution like Docsumo, finance teams can process hundreds of bank statements in minutes, not days. In this short guide, we’ll answer common questions to help you understand how bank statement verification software works.

Q1: Why should I automate bank statement verification?

A: Manual verification of bank statements takes up valuable time and is prone to errors. It can also miss important anomalies that could affect your financial decisions. Automating the process with Document AI makes verification faster, more reliable, and reduces fraud risks. Plus, it cuts down on manual work, allowing you to make better decisions faster. 

Read more about Docsumo’s data verification solution to see how it can help simplify your workflow.

Q2: What are the biggest challenges with manual bank statement verification?

A: Manual bank statement verification comes with several challenges, including inconsistent formats from different banks, difficult-to-read tables and scanned documents, missed discrepancies, and incorrect totals. Additionally, significant time is lost on repetitive, low-value tasks. 

Docsumo’s Intelligent Document Processing (IDP) addresses all of these challenges with a single platform, streamlining the entire process for greater efficiency and accuracy.

Q3: How does Docsumo’s Document AI platform work?

A: Given below are the steps explaining how Docsumo works:

1. Upload: Drag and drop bank statements onto the Docsumo platform.
2. Extract: The system reads the document and extracts data, including account numbers, transactions, and balances.
3. Validate: Built-in checks confirm data accuracy, such as verifying opening balances against closing balances.
4. Review: Approve the data or fix flagged exceptions.
5. Export: Download in CSV, JSON, or push via API/Webhook to your systems.

To see the process in action, watch the video and learn more in detail. 

Q4: What makes Docsumo different from other tools?

A: The features that separate Docsumo from other tools are:

• Can read 200+ global bank statement formats with high accuracy
• Supports straight-through processing with minimal manual touch
• Seamlessly integrates with tools like QuickBooks, Xero, and Zapier
• SOC-2 certified and GDPR, HIPAA compliant for data privacy
• Continuously learns new formats to stay ahead

Q5: Who can benefit from this automation?

A: Anyone who deals with bank statements regularly, lenders, financial institutions, underwriters, income verifiers, or even accounts teams.

For example, Grid Finance in Ireland utilized Docsumo to automate over 93% of their loan application processing, resulting in a monthly savings of € 5,000 and over 50 man-hours.

Q6: Can this help reduce fraud?

A: Yes, Docsumo’s AI is designed to identify unusual patterns and inconsistencies in transactions, enabling you to detect potential fraud proactively. It ensures that your data is not only processed but also validated, providing you with reliable insights for more intelligent, more informed decision-making.

Q7: How secure is Docsumo for handling sensitive financial data?

A: Very secure. Docsumo is SOC-2 certified and GDPR compliant, ensuring high standards in data handling, encryption, and privacy protection.

Q8: What’s the final business impact of automating your bank statement verification?

A: Automating your bank statement verification allows your team to save time on manual work, reduce human errors, focus on strategy and growth, improve loan decision speed, and lower processing costs.

Q9: Does Docsumo handle both scanned and native PDF bank statements? 

A: Yes, Docsumo is built to handle both scanned (image-based) and native (text-based) PDF bank statements with high accuracy. Its advanced OCR (Optical Character Recognition) engine ensures accurate data extraction from low-quality scans, handwritten notes, or complex tabular data.

Q 10: Can I train Docsumo to recognize new or custom bank statement formats?

A: Absolutely, that’s where Docsumo stands out from the rest of the other generic bank statement extraction tools in the market. Docsumo’s platform is built on machine learning and can be trained to recognize new or custom formats over time. If your team encounters a unique format, you can configure custom rules or request format support, and the system learns quickly with continued use.

Final Thought

Automating your bank statement verification with Docsumo can really make a difference for your team. It helps cut down on time-consuming manual work, improves accuracy, and reduces the risk of fraud, letting you focus on the things that matter most. Whether you're working in finance, lending, or accounts, this approach can save you time and help make better, faster decisions.

Curious to learn more? Try it out with a trial or see how Docsumo can help simplify your bank statement verification process.