Bank statements contain useful financial information that can be turned into important insights. With the era of manual bank statement extraction firmly in the past, intelligent document processing (IDP) and artificial intelligence (AI) offer a better way of processing bank statements and obtaining the valuable data they contain.
What is Bank Statement Extraction?
Bank statement extraction is the process of pulling critical financial data from bank statements. These statements may be in the form of PDFs or scanned documents and contain transaction details, fees, balances, and other data. Once extracted, this data is converted into a structured format that makes it easier to analyze.
Traditionally, extraction was performed manually. Finance teams would pore over statements, identify relevant data, and enter it into spreadsheets. The use of Optical Character Recognition (OCR) technologies resulted in a more efficient extraction process. However, OCR would often provide inaccurate results, particularly when working with non-standard formats or subpar image quality.
Today, AI-powered bank statement extraction software provides a faster and more sophisticated solution. Here’s how it works:
Improving Bank Statement Extraction with AI
AI-powered bank statement extraction goes beyond simple automation. It uses AI algorithms and machine learning (ML) techniques on transactional data for improved understanding and pattern recognition. Unlike older extraction methods, AI doesn’t rely exclusively on predefined templates or basic text recognition. Instead, it analyzes and understands financial documents’ structure, adapts to different formats, and captures financial data accurately.
The AI models used by modern bank statement extraction tools are trained to identify patterns, context, and anomalies in a dataset. ML algorithms further improve the extraction process by continuously learning from corrections and new data. The result is a solution that gets smarter and more accurate over time.
Benefits of Using Bank Statement Extraction Software
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Time Savings
With bank statement extraction software, the manual task of entering data from statements is largely automated. This means you can spend your time on more valuable activities, like strategizing or engaging with clients, instead of sorting through piles of financial paperwork.
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Improved Accuracy
Using bank statement extraction tools, you can significantly reduce errors in data entry. The software uses advanced algorithms to accurately extract and categorize financial information, giving you confidence that your records are precise and reliable.
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Enhanced Decision-Making
With this software, you can quickly generate reports and insights based on your bank statements. This means you can identify trends and make informed decisions faster, helping your business stay ahead of the competition.
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Cost Efficiency
Bank statement extraction software streamlines how you handle bank statements and allows you to cut down on operational costs. Less time spent on manual entry and fewer errors mean you’re saving both time and money, making your finance department more cost-efficient.
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Seamless Integration
Modern bank statement extraction tools can integrate seamlessly with your existing financial systems. This means you won’t have to change your entire workflow to start benefiting from this technology. You can easily connect it to your accounting software, allowing for a smooth flow of data that enhances overall productivity.
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Better Security
Bank statement extraction software helps you maintain accurate records for compliance purposes and often comes with built-in security features. This way, you can rest easy knowing your sensitive financial information is protected.
The Best Bank Statement Extraction Software
Astera
Astera is an end-to-end data management platform designed to streamline and automate data processes. Astera’s Intelligent Document Processing (IDP) component accelerates data extraction across various file formats and data sources, including bank statements. With AI-driven tools and rule-based mapping, it simplifies complex data extraction tasks and enables high accuracy, speed, and flexibility. It is an ideal solution for extracting data from bank statements and other financial documents. Pricing depends on the specific modules you want to use.
Key Features:
- Astera leverages both AI and machine learning to analyze the meaning behind your data, not just its format. This semantic mapping enhances the accuracy of transaction detail extraction from complex bank statements, helping you get precise information every time.
- By automating the entire data mapping process, you can significantly cut down on manual input, making it easier to process large volumes of bank statements with speed and efficiency.
- Whether your bank statements are in PDF, Excel, JSON, CSV, EDI, or other digital formats, you’ll benefit from seamless extraction and processing across all formats, reducing the need for file conversions.
- Built-in validation features ensure that your extracted data is both accurate and reliable. This minimizes errors in financial reporting, giving you confidence in the integrity of your records.
- You don’t have to rely on predefined templates, as AI-driven processing adapts automatically to different file types and layouts, giving you the flexibility to work with diverse bank statement formats.
- Specify the fields you need, and Astera’s AI will intelligently identify and extract relevant financial data across various statement formats, improving consistency and reducing errors across your financial data.
- You can consolidate your data extraction processes into just a few dataflows, even with multiple bank statements. This simplifies your workflows and saves time and resources, making your processes more efficient.
- Designed for high-speed processing, the advanced extraction engine is ideal for handling large volumes of bank statements regularly. With easy scalability, it maintains efficiency even as your data processing needs grow.
Streamline Your Financial Workflows
Transform your financial workflows with AI-powered bank statement extraction. Schedule a demo with our team today to see how Astera's IDP can help streamline your data extraction process.
Schedule a Demo Docsumo
Docsumo enables businesses to extract data from various document types. It converts unstructured documents, like bank statements, into structured data, making it easier to analyze and automate workflows. Docsumo offers different pricing packages, such as Growth at $500/month and Business & Enterprise with custom pricing. These packages have varying features and limitations.
Pros
- Docsumo can process a wide variety of documents, including invoices, receipts, and bank statements.
- The software is suitable for both startups and larger enterprises.
- Docsumo’s technical capabilities are supported by its responsive customer service.
Cons
- The pricing can be a bit steep for smaller businesses or startups working with tight budgets.
- While it handles many document types, some users have reported that its accuracy with specific documents is not the best.
- Getting Docsumo up and running takes time and effort as the setup is not straightforward. Users without tech experience find it complex to learn initially.
Nanonets
Nanonets is a generative-AI powered bank statement extraction tool that promises a quick setup and handling of complex document layouts. It offers dynamic pricing plans based on usage requirements and needed features.
Pros
- Nanonets can automate the entire bank statement reconciliation process.
- The no-code design makes it easy to use, even those without technical expertise.
- Supports documents with complicated layouts in multiple languages.
Cons
- If not managed well, the AI models become too focused on specific formats, which can impact performance on different layouts.
- The pricing is on the higher side compared to simpler solutions, which could deter small businesses or those with lower volumes.
- The effectiveness of Nanonets heavily relies on the quality of the input data. Poorly formatted documents or inconsistent data leads to challenges in extraction accuracy.
Parseur
Parseur is a document parsing tool that can also extract data from bank statements using a template-based approach. With its AI-powered custom extractor, you can capture essential transaction details, balances, and account information from both digital and scanned statements. Parseur offers the following plans:
Besides these, Parseur also offers packages by volume, ranging from 20,000 to 1 million pages a month.
Pros
- Like other bank statement extraction software, it’s straightforward and easy to use.
- Parseur accommodates a wide variety of bank statement formats.
- You can create templates tailored to specific requirements.
Cons
- The initial creation of templates takes some time, which delays the start of your extraction process.
- Each different format requires a new template, which can make scaling up a challenge.
- Parseur struggles with complex layouts like nested tables or multi-line descriptions, which can lead to less accurate data extraction.
FreshBooks
FreshBooks is an accounting software, but it also has features for processing bank statements and extracting data. You can connect your bank accounts and credit cards directly, which allows for automatic transaction imports. FreshBooks offers different packages—Lite at $9.50/month, Plus at $16.50/month, Premium at $30/month, and Select with customized rates. These packages are also available in yearly payment models.
Pros
- The software has a straightforward layout, making it easy to navigate and find what you need.
- It integrates bank data with other accounting features.
- FreshBooks is a good fit for small businesses and freelancers looking for an affordable solution.
Cons
- FreshBooks lacks advanced OCR features for reading physical or scanned bank statements, which restricts its functionality.
- It cannot handle complex or high-volume statement processing as effectively as some specialized solutions.
- While it can reconcile bank statements, it’s not specifically designed for extraction, which limits its use for more extensive workflows.
Infrrd
Infrrd is an AI-powered Intelligent Document Processing (IDP) tool designed to extract data from bank statements. It uses artificial intelligence and machine learning to automate the extraction and categorization of financial data. Infrrd’s pricing plans include Intelligent Document Processing (IDP), Human-in-the-loop (HITL), and No-Touch Processing (NTP), alongside an AI agent Annie.
Pros
- Infrrd accurately extracts data, which helps reduce manual errors and improves reliability.
- The software can handle large volumes of bank statements.
- You can tailor extraction rules to fit your specific business needs.
Cons
- Getting Infrrd up and running requires some time for initial setup and configuration, which could be a consideration for busy teams.
- While it handles various formats well, you may encounter difficulties with very non-standard or poorly scanned documents.
- There could be recurring expenses related to software licenses or API usage, which is something to keep in mind when budgeting.
Docuclipper
Docuclipper automates the extraction of transactions, balances, and other important financial information from both digital and scanned bank statements. Its pricing packages include Starter at $39/month, Professional at $74/month, Business at $159/month, and Enterprise with custom rates.
- Docuclipper uses pre-trained models for bank statement extraction, which can save time on setup.
- The software handles various complex and high-volume documents.
- It offers easy integration with popular accounting software.
Cons
- Accuracy is an issue with Docuclipper. The platform can flip debit and credit transactions or get the year wrong.
- Configuring the system can take some time for more tailored solutions.
- Docuclipper is an OCR solution. OCR is considered an outdated technology, especially compared to more modern, AI-powered options such as Intelligent Document Processing (IDP).
Super.AI
Super.AI is an AI-powered document processing platform that can adapt to bank statement extraction, though it’s not solely focused on this task. It utilizes machine learning and computer vision to automate data extraction from various document types. The platform tailors pricing to individual requirements based on document volume, data fields to be extracted, and possible customizations.
Pros
- You can train the software to recognize and extract specific fields from different bank statement formats.
- Super.AI combines automated processes with human checks to improve accuracy and ensure quality.
- The platform can handle high volumes of document processing.
Cons
- Getting the software to perform optimally takes time for setup and training.
- While it can handle bank statements, it’s not designed specifically for this purpose, which might limit effectiveness in some scenarios.
- Non-technical users find it challenging to navigate the platform initially, especially if they are unfamiliar with document processing technologies.
How to Choose Bank Statement Extraction Software
Choosing the right bank statement extraction software requires due diligence as there are multiple options out there. Let’s break it down into some straightforward tips to help you make the best choice for your business.
Before exploring software options, assess your needs. Are you processing a high volume of statements, or are your requirements more modest? Knowing how you plan to use the software will help you choose the right features and avoid paying for unnecessary capabilities.
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Look for User-Friendly Interfaces
Since many of us aren’t tech experts, it’s important to find software that has a simple and intuitive interface. The easier it is to navigate, the less time you’ll waste trying to figure things out. Look for user reviews that mention ease of use to maximize tool adoption.
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Check for Integration Capabilities
Consider how the bank statement extraction software will fit in with your existing systems. Does it easily integrate with your accounting software or other financial tools?
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Evaluate AI and Automation Features
When evaluating bank statement extraction software, consider its automation and AI capabilities. Look for solutions with advanced algorithms that adapt to different formats without frequent adjustments to improve accuracy and efficiency.
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Request a Demo or Free Trial
Many companies offer demos or free trials of their software. Take advantage of these offers! Testing out the software yourself can help you understand if it truly fits your needs and preferences. It’s your chance to see firsthand how user-friendly it is and whether it delivers on its promises.
Enhance Accuracy and Efficiency in Data Extraction
Say goodbye to manual data entry and hello to high-accuracy bank statement extraction. Discover how Astera’s advanced AI capabilities can simplify and accelerate your financial reporting.
Contact Us Today! Use Cases
AI-powered bank statement extraction solutions prove valuable in several areas, such as:
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Automating Bookkeeping Processes
Accountants spend hours manually entering transaction details into accounting software, which is both time-consuming and error-prone. With bank statement extraction software, businesses can quickly extract relevant financial data directly from their bank statements.
The software uses AI-driven algorithms to accurately identify and categorize transactions, reducing the manual effort involved.
Companies often struggle to track employee expenditures, especially when they come in various forms—receipts, bank transfers, or credit card statements. Bank statement extraction tools can unify this information by extracting details of employee transactions automatically.
The software helps organizations monitor expenses by categorizing them and providing insights into spending patterns. This allows finance teams to easily identify areas where spending can be optimized, enhancing budget control and accountability.
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Financial Reporting and Analysis
Bank statement extraction software quickly consolidates data from multiple bank statements, enabling organizations to generate financial reports with ease. Using AI and machine learning, the software can analyze transaction data and identify trends, helping businesses understand their financial health.
Bank statement extraction tools leverage AI-powered anomaly detection algorithms, that can monitor transactions for unusual patterns or discrepancies. For instance, if a transaction is significantly larger than the typical spending limit, the software flags it for review.
Many industries are subject to strict regulations regarding financial reporting and data management. Bank statement extraction software assists in ensuring compliance by automatically archiving transaction data and generating audit-ready reports.
The software’s ability to accurately extract and categorize financial information means that businesses can easily produce the necessary documentation for audits or regulatory reviews—reducing the risk of non-compliance penalties.
Summing It Up
By choosing bank statement extraction software that aligns with their needs, businesses can enjoy a faster and more streamlined process. Enterprises can save time and operational resources across the many areas where bank statement extraction is useful, enabling them to focus on higher-priority activities.
Astera’s Intelligent Document Processing (IDP) transforms bank statement extraction, providing organizations with high-quality data and decreasing the time to insight. Powered by a remarkable set of AI capabilities known as Astera Intelligence, Astera features automated semantic mapping and data extraction from varying document formats. With Astera IDP, there’s no need for predefined templates, as the tool adapts automatically to different layouts and file types. It intelligently extracts relevant data based on user-specified fields, and drastically lowers the number of extraction workflows needed to get the job done.
Experience a better way of extracting bank statements with Astera.
Speak to our team to set up a demo today.
Authors:
- Usman Hasan Khan