Intelligent automation and lending glossary

Explore our glossary to better understand key industry terms such as automated document processing, intelligent document processing, document indexing, and many more. For further understanding, visit our FAQ page to learn more about the frequently asked questions related to our solution and industry terms.

Auto lending

Auto lending is the process of setting up a loan for an individual in order to finance the purchase of a vehicle. The terms of these types of loans may vary from borrower to borrower.

Automated document processing

Reviewing human-written documents with computer programs instead of people.

Back-office operations

A part of a company that performs non-client facing functions and personnel like adminstration and support.

Bank data analysis

Valuable information and insights from a complex banking data set that consists of both structured and unstructured data.

Business identity fraud

When a criminal steals a company’s identity by creating, using or attempting to use the identifying information of a business, without authority, to buy goods, services and/or obtain tax benefits.

Business process management (BPM)

BPM is the ability to utilize a variety of methods to continuously analyze and improve upon current business processes. Organizations often take advantage of automation and technology to aid these efforts and become more efficient and effective.

Business Process Outsourcing (BPO)

Valuable information and insights from a complex data set that consists of both structured and unstructured data.

Cash flow analysis

The examination of different cash inflows and outflows of a company or entity to get a detailed picture of its financial health. Ocrolus offers 100+ small business and consumer analytics that illuminate a borrower’s cash flow dynamics, including revenue, expenses, transaction categories, financial ratios, and trends.

Document indexing

The practice of adding metadata to documents that makes them easier to search for.

Employment verification

Employment verification process of confirming a borrower’s work history with documents such as W2s, paystubs, and Work Number forms.

Entity resolution

The process of identifying multiple data sources that refer to the same entity and then linking the records together. Entity resolution can be especially useful in the case of reconciling customer information when their data is entered multiple times in unique sources by various people.

Equipment leasing (equipment financing)

This is the practice of creating a contractual agreement where the lessor, who owns the equipment, allows the lessee to use the equipment for a specific amount of time and for periodic payments. The equipment may refer to vehicles, factory machines, or any other equipment.

Financial statement fraud

The deliberate misrepresentation of account balances in a financial statement to help an individual or organization deceive the person or entity reviewing the financial statement, such as a lender. This misrepresentation often helps individuals gain access to more credit than they normally would.

Form data extraction

Converting the contents of forms into machine-readable data. Depending on how the form is stored, data extraction can be done through OCR or through the document’s embedded text data.

Human error

These are human-made unplanned mistakes that reduce quality, safety and/or security.

Human-in-the-Loop machine learning

An extension of machine learning in which human experts validate the analysis performed by machines. This combines the best of machine learning with the review of humans.

Identity fraud

Identity fraud is when an individual pretends to be another person using stolen or forged documents in their name.

Income assessment

The verification of how much a borrower earns through the assessment of documents like bank statements, paystubs, and tax forms. Ocrolus can calculate and verify income for consumers with diverse employment profiles.

Intelligent document processing

A type of document automation where a program is able to capture, extract, and process data from a variety of document formats. It utilizes AI technologies such as natural language processing (NLP), Computer Vision, deep learning and machine learning (ML) to classify, categorize, and extract relevant information, and then analyze the data.

Know Your Customer (KYC)

This is a standard in the financial industry that ensures financial professionals have detailed information about their clients’ risk tolerance, investment knowledge, and financial position. KYC protects all parties in the financial process by making sure both sides are aware of what is a reasonable financial burden and risk. KYC compliance typically involves requirements and policies such as risk management, customer acceptance policies, and transaction monitoring.

Loan origination system (LOS)

A system that automates and manages the loan process from beginning to end. This includes everything from the application, through to underwriting, approval, documentation, pricing, funding, and administration. While the individual steps may differ with every lender, the overall process is very similar and helps to maintain a lending relationship.

Loan stacking

The practice of getting approved for multiple loans or lines of credit at the same time or within a very short period of time. Loan stacking generally happens through online lending and can be done by either individuals or businesses. While this practice is not illegal, billions of dollars are lost by financial institutions each year because many loan stackers commit application fraud and intentionally default.

Machine learning

The practice of building a computer model to solve a task by letting it discover patterns in data, rather than by using traditional programming methods and setting rules in advance. Furthermore, one of the distinct advantages with utilizing machine learning is that these models can be set up so that with each performance of the task, the computer is able to learn how to perform the task better.

Modern fintech infrastructure

The technology stack of a financial service company that helps streamline processes, increase accuracy and reduce turnaround times. Currently, the fintech field is broken up into four main categories, 1) B2B for banks, 2) the banks clients, 3) B2C for small businesses, and 4) consumers.

Mortgage automation

This is the process of replacing manual data entry with automation in the mortgage process from start to finish. Mortgage automation significantly enhances the lending process by enabling financial institutions to route forms and data automatically, reducing the complexity of processing applications, decreasing potential errors, and ensuring customers an efficient and pleasant lending experiences.

Mortgage quality control

The process of ensuring that the mortgage process proceeds according to regulations. This includes preparing the right documents, getting signatures from the correct individuals, providing the proper disclosures at the correct times, and maintaining comprehensive documentation.

Optical character recognition (OCR)

The ability of machines to convert images of typed text into machine-readable data.

Robotic process automation (RPA)

RPA is the process of designing a machine (including software) to do human tasks using real or simulated human tools.

Small Business Health Index (SBHI)

This index is a measure of the health of small businesses in the United States. This number is based on several different sets of data including Ocrolus’ own and seeks to capture a real-time snapshot of the health of small businesses by industry and geography.

Synthetic identity fraud

Synthetic identity fraud is the practice of pretending to be a non-existent person using partially or entirely false information. This is in contrast with conventional identity fraud, in which the identity of a real person is assumed.

Transaction-level data

Transactional data is the data gathered as a result of an individual or businesses transactions. Recent transactions tend to provide more useful information than older ones.

Underwriting process

The underwriting process is initiated when an individual or institution is interested in some sort of financial risk, namely taking on a mortgage or insurance . In order to confirm eligibility, the lender verifies the individuals income, assets, debt, credit and property.