ECL Software Blog

The Cost of Data Entry Mistakes is Much Higher Than You May Think

How much does it cost your company when a data entry error is made? You may assume that most mistakes are minor and don’t have a huge impact on your bottom line but that could be wrong. Keep reading to learn how data entry errors can have a much larger impact than you may think, then contact ECL Software at 800-625-5972 to learn how our JDIO software can help you get the job done right – the first time.

An Investment in New Technology Can Reduce the Need for Future Costs

It can seem that investing in new software can just increase your costs, the truth is that this is a short-term expense that can be paid for in future lack of losses. If you stick with your legacy system and workflow methods, you can be losing resources and time every single day you show up to work.

The Facts About Data Entry Errors May Surprise You

The National Center for Biotechnology Information (NCBI) completed a study of error rate in single-entry data entry. There were than 100 people who participated and more than 20,000 pieces of data were evaluated. The study showed that there were more than 650 errors for every 10,000 entries. That’s a nearly 7% data entry error rate.

Common Data Entry Errors in the Lending Industry

When it comes to the lending and fund distribution industries, data entry errors can be huge. If things like social security numbers or a person’s date of birth are inaccurately entered, the lender could end up out of compliance with the Bank Secrecy Act’s Customer Identification Program.

Data entry errors can also lead to serious mistakes in loan amounts. Consider, for example, the huge issues that could arise if a $10,000 loan is wrongly documented as a $100,000 loan. Even if it ends up funding accurately, there may be issues of compliance reporting, pricing, and documentation that was overlooked due to the error.

There is a Simple Solution to Many Data Entry Errors

If you want to significantly reduce data entry errors, the first step is to ensure that data only needs to be entered once. Many lenders and fund distribution companies are using outdated programs that require several types of software to cover all their needs. The person entering info on loans is then forced to enter it twice, three times, or even four times throughout various software programs. It is not hard to see that the more times a number must be re-entered, the more chances there are for mistakes.

This is just one reason to consider the software solutions from ECL Software. We know how serious these errors can be and we created software solutions that truly solve the problem. Call us at 800-625-5972 or email us at info@eclsoftware.com for a free demonstration of the way it works.