Do RPA have any role in the process of Letter of Credit Scrutiny in a financial service. A letter of credit, or “credit letter,” is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. For this process bank has to examine several documents to see if they comply with the documentary credit terms that were set by the buyer and the governing rules of LC. The bank also checks the instructions to ensure that the documents submitted by the seller contains no errors, in order to make the payment. As this was a very time-consuming process, automation will be the perfect solution for their problem and officers can focus on areas which need more manual interventions. With the advent of RPA technology, Alzone had successfully automated their Letter of Credit Scrutiny process of Supporting Documents

Document scrutiny is the most important step in the process where all the supporting documents undergo verifications which results in various challenges when performed manually. There can be missing of critical rules and possibilities of manual errors. Also, the tasks performed are highly repetitive and requires a lot of human effort for the process of data extraction from required fields. A huge volume of documents and rule complexity makes the process time consuming. The solution was to automate the process using a cognitive RPA bot and Intelligent document processing with the heavy usage of Natural Language Processing (NLP). Bot will extract necessary information from LC and cross check with the supporting documents based on the master rule book. By leveraging the capabilities of natural language processing, bot is trained to read the additional rules mentioned in the LC and run corresponding algorithms by applying the necessary conversions to complete the validations.

Alzone has derived a unique solution for the Letter of Credit Scrutiny of Supporting Documents process by automating the whole process.  If all these processes are done manually, at least it takes 2 days to get into an initial step and this makes customer embarrassed, by the deployment of individual bots by Alzone they are able to do the process within 1 day and downsized the delays due to reading and manual errors. As a result, we have provided them a permanent solution by solving all the errors and missing of critical rules. When bot started working, it completed the works much faster than before by processing multiple documents within limited timeframe so that issues like late shipment, expiring of letter of credit, difference in the billing dates and absence of documents all get sorted out. As the document examination is performed by Bots, the activity would be made much more scalable, i.e., banks are less constrained by availability of document checkers to handle fluctuating volumes of presentations also the quality of document examination by individual bots would theoretically be more consistent than that by human document checkers, avoiding personal quirks and reducing operational risks. In this way we helped our client to improve their customer as well as employee satisfaction.