Straight-through processing (STP) is a term that describes digitising common processes and transactions.
It’s not just about automating manual processes, but also ensuring digital transactions are verified and processed efficiently.
What is straight-through processing?
STP is an automated process done purely through electronic transfers with no manual intervention. It can be understood as a business process where data flows through it in one direction without being stopped or diverted along the way. Its popular uses are in payment processing as well as the processing of securities trades. In the insurance industry, STP can streamline similar claims where a set of criteria is known.
6 benefits of straight-through processing.
1. Reduced costs and time
STP can reduce costs, primarily when implemented on a company-wide scale. In addition, it can minimise the time information needs to be re-keyed as transmitted from one service provider to another, making it ideal for electronic business exchanges and decisions.
STP also speeds up the process of amending a transaction or operation, reducing opportunities for human error. Also, transactions and operations through STP must be accompanied by all relevant documentation to ensure that your company’s internal controls are not compromised. Finally, it eliminates many chances and opportunities for fraud, drastically reducing costs associated with auditing processes.
2. Greater accuracy
STP helps ensure that transactions are processed more accurately by error-checking software. It allows organisations to quickly analyse trends and identify errors, increasing customer satisfaction levels and minimising mistakes. Giving businesses the ability the hit the hammer on the nail from the get-go.
3. Lower rates of errors and fraud
STP causes lower rates of errors and fraud using STP-integrated software. STP software validates data to reduce or eliminate errors and disputes that usually result from manual processes. In addition, STP includes payment verification systems to verify transactions before funds are released.
4. Increased customer satisfaction levels
STP increases customer satisfaction and minimises complaints through efficient transactions and operations created by streamlined processes. STP can also work with your software/technology integration ensuring compliance with regulation, which can help build consumer confidence in your business.
To increase customer satisfaction, STP simplifies the payment process, allowing employees to focus on satisfying their customers and offering personalised services rather than tedious admin work.
5. Better cash flow management capabilities
STP offers better cash flow management capabilities with the use of STP-integrated software. This is because STP allows for real-time monitoring of claims processes and funds entering and exiting businesses and provides easy access to customer information.
STP also means more efficient communication between employees and customers, accessible through STP-integrated software portals available on many devices.
6. Improved business intelligence
STP improves business intelligence by providing new ways of interpreting and analysing data, creating more opportunities for improved business processes. STP uses analytics to provide insights into the most critical aspects of the business, leading to world-class decision-making and smarter growth strategies.
Can straight-through processing go wrong?
While straight-through processing has many benefits, it can also be a complex system to implement and maintain. Therefore, you must have the right technology partner to help keep your business running smoothly.
How can Wilbur help?
Wilbur provides full-service technology solutions for businesses in the insurance industry looking to adopt straight-through processing technologies.
We pride ourselves on our ability to work closely with our clients throughout every stage of their STP journey—and beyond!
To find out more about how Wilbur can help your company benefit from these advantages, contact us today.