Data Entry Throughput and Cost: The Real Numbers

Over the past 15 years, OrboGraph has been working with many organizations to identify the miskey rates of data entry operators. This research included:

• End-user banks
• Data entry providers to OrboGraph
• Research engagements with Global Concepts and Metasoft

Part of our analysis was focused on unit costs of keying, while balancing was also an important consideration. One thing is certain, the environmental variables play a major role in the accuracy of data entry operators. These variables include:

• Distribution of seasoned keyers vs. new keyers
• Turnover rate
• Geographic location
• Work environment
• Compensation programs
• Software functionality
• Software usability
• Tracking methodology
• Management 

We have identified wide ranges of operator keying accuracy and speed, which ultimately impact the unit costs of data entry.

The data entry costs illustrated in the table to the right were obtained from a survey across a wide range of OrboGraph bank customers. While benchmarking many financial institutions, we do see many community and regional banks operating at miskey levels at or exceeding 3% (see table below from existing customer). In our outsourcing operations, we have a wide range of keying misread rates. By implementing the proper controls, we have been able to migrate actual data verification numbers from 3% to near 1%. These controls include software functionality as well as “automated training” which kicks-out the validators with high miskey rates. This software is also very focused on CAR-only snippets. In our research with Global Concepts, we were able to extrapolate miskey rates based on the balancing requirements. In most cases, miskey rates were closer to 2% in larger. financial institutions, particularly those that implemented “keying centers of excellence”.

Miskey Levels

In conclusion, the standard deviation across the industry is probably quite high due to the variability of each environment. Many times, FI’s just cannot allocate time to the management function needed to ensure low miskey rates to drive down the unit costs of data entry. We’ve found that these controls are critical to the process, especially when guaranteeing performance levels with Automation Services.