EDI Full Form in Banking | What is the Full Form of EDI

Full Form of EDI

EDI stands for Electronic Data Interchange. ( full form of edi )
It's a computer-to-computer exchange of data or information like business documents between companies.
It involves the use of a uniform format that permits companies send information or documents to a different companies electronically without human intervention.
EDI is in use for more than 30 years. There are many EDI standards like X12, ANSI, EDIFACT, ODETTE.
For using EDI, the computer systems of two companies must be ready to communicate directly with one another.
Furthermore, as there's no human intervention, the businesses must follow an equivalent standard format to enable computer systems understand one another and information flowing between them.
Generally, the companies that do business together use EDI for fast, accurate and reliable exchange of data.

EDI Interchange

Benefits of EDI ( full form of edi )

Speed :
- The data and information are exchanged in a matter of seconds rather than days or weeks.
Time-Saving :
- It eliminates the time-consuming activities like printing, handling, filing and delivering the documents.
Accuracy :
- The human intervention is reduced in EDI that reduces human errors like illegible handwriting, document mishandling etc.
Low Cost :
- It helps companies save money because the expenses associated with producing and delivering documents are eliminated.
CRM :
- It helps manage relationship with customers by enabling companies respond faster to changing customer need.
Real-time transactions :
- Information is exchanged in real-time that permits faster and better decision-making.