How to Extract Brokerage Account Statement Portfolio Holdings from PDFs Using AI

July 11, 2024
Post Image

Processing brokerage account statements can be a taxing task for financial advisors, especially as they accumulate. Manually extracting details from each statement is tedious, time-consuming, and error-prone, leading to inefficiencies.

Thankfully, advanced technologies can simplify this task. This article will guide you through extracting portfolio holdings data from PDF brokerage account statements using AI and OCR technology, making the process simpler and more efficient for financial advisors.

Step-by-Step Guide

Step 1: Selecting the Right Brokerage Account Statement Scanner

Choosing an effective OCR and AI-based brokerage account statement scanner is essential for ensuring accuracy and efficiency.

We recommend Investipal, an advanced OCR and AI solution specifically built for financial advisors that captures brokerage account statement portfolio holdings data with 95% accuracy.

Investipal processes various formats, automatically converting PDF brokerage account statements into usable data quickly.

Step 2: Uploading Your PDF Brokerage Account Statement

After selecting your scanner, the next step is to upload your PDF brokerage account statement into the extraction software. Here's how:

  • Prepare Your Documents: Ensure your PDF files are clear and legible to avoid errors in data extraction.
  • Upload Process: Open Investipal, navigate to the portfolio page, click on “Add many securities” and then select “Upload from file”
Simply click upload from file to begin
  • You can drag and drop your files in various formats like PDF, .png, .jpg, .xlsx, .xls or .csv into the scanner. It will instantly begin parsing the data, turning a laborious task into one that is done in seconds with minimal errors.
Easily drag and drop the files directly into Investipal

Step 3: Automatic Portfolio Holdings Extraction and Review

Once the documents are uploaded, Investipal’s software will automatically extract the portfolio holdings data:

  • Extraction Process: The AI-powered OCR technology scans the document and extracts relevant data points such as asset names, quantities, and values.
Review that the document is correct before importing into Investipal
  • Review and Validation: After extraction, review the data within the software to ensure its accuracy. While Investipal achieves 95% accuracy, it’s crucial to validate the data and correct any discrepancies.
Edit the extracted data or search for new securities directly within Investipal

Step 4: Analyze Client Holdings in Investipal

Since Investipal is a fully integrated portfolio management platform, after reviewing and validating the data, you can keep it within Investipal to:

  • Understand client portfolio exposure
  • Analyze, backtest, and compare the portfolio to your models
  • And even generate a proposal
Analyze holdings and exposure directly within Investipal's portfolio management software

(Optional) Step 5: Downloading Portfolio Holdings Data

If you would like to export the data, then you can download it for further use.

  • Download Options: Investipal allows you to download the data in various formats, such as CSV or Excel. Simply click the download icon in the top right to download your file.
Download holdings into a CSV or Excel format

Additional Information

What is Brokerage Account Statement Data Extraction Software?

Brokerage account statement data extraction software uses AI and OCR technologies to automate the extraction of data from financial documents. The software scans documents, identifies relevant data points, and converts them into a machine-readable format, simplifying data management for financial advisors.

Intelligent Document Processing (IDP)

Combining OCR technology with AI forms Intelligent Document Processing (IDP). IDP uses AI to enhance OCR capabilities, improving accuracy and handling more complex data extraction tasks. This combination offers a robust and efficient solution for processing brokerage account statements.

Benefits of Automated Brokerage Account Statement Data Capture

  • Cost Reduction: Automating data capture reduces the time and cost associated with manual data entry.
  • Labor Savings: The cost of OCR data capture software is significantly lower than the salary of a data entry personnel, leading to substantial savings.
  • Improved Organization: Digitized data is more organized, consolidating scattered paper documents into a single spreadsheet.
  • Increased Accuracy: OCR technology minimizes errors compared to manual data entry, ensuring higher data accuracy.

Manual vs. OCR Portfolio Holdings Data Extraction

  • Manual Extraction:
    • Pros: Direct control over data entry and ability to handle unique document formats.
    • Cons: Time-consuming, error-prone, and not scalable.
  • OCR-Based Extraction:
    • Pros: Fast, accurate, scalable, and reduces manual workload.
    • Cons: Initial setup and validation required.

Using OCR Technology

OCR technology converts documents like scanned paper documents, PDF files, or images into editable and searchable data. In financial advisory, OCR is used to extract data from brokerage account statements, reducing the need for manual data entry and minimizing errors. AI enhances OCR by improving accuracy and handling more complex data extraction tasks.

Conclusion

AI and OCR technologies can transform how financial advisors handle brokerage account statement analysis and portfolio management. This step-by-step guide shows you how to use these technologies to save time, reduce errors, and provide more accurate and insightful advice to your clients. Learn how Investipal’s solutions can help streamline your brokerage account statement analysis and improve your practice. Contact us today to schedule a demo and learn more about our innovative tools.

Let's Kickstart Your Growth

Curious how Investipal can help accelerate your firm's growth? Chat with one of our solution experts.