The 2008 financial meltdown hit the bottom-line growth of banks, bringing a host of profitability challenges as well as regulatory scrutiny. Operational inadequacies and failure to meet compliance were at the root of the crisis. The pressure on profitability margins is driving banks to look at innovative ways to harness new revenue streams and reduce branch expenses, while increasing long-term profitability and organic growth. Banks across the globe are renewing their focus on Enterprise Content Management (ECM) programs as a strategic differentiator to optimize the value of information and cost.
Traditionally, key business drivers for ECM were compliance and operational efficiency. Today, the expectations are higher and more complex. Banks need to provide quick mobile access to important documents and processes. They are looking to improve efficiency through enhanced collaboration with partners and availability of content across multi-site operations and locations. The demand for instant, on the move, real-time access to data that is archived centrally is more urgent than ever before. They need electronic workflow streams to deliver the right information to help employees make informed business decisions.
A recent report by AIIM, ECM at the Crossroads, reveals that ECM is a “work-in-progress” for most organizations. Often we hear them say – “Our information is widely scattered across the enterprise and our employees spend way too much time looking for the data they need to get their job done.” “We invest in the tools to manage information and never get the promised benefits of operational efficiency and optimized workflow.”
The Paper Problem
A move toward “enterprise paperless banking” is a big driver of content management systems. Especially as the sheer volume of data, both structured and unstructured, has dramatically changed the content management landscape, banks are under pressure to reduce their reliance on paper and demonstrate compliance with regulatory requirements. A recent study by the technology company AccuSystems, 12% of Financial Institutions Have Gone Completely Paperless in Loan Management, indicates that although 70% of financial institutions use some type of loan document imaging software, only 12% consider themselves to be truly “paperless.” Even today, key departments such as mortgage lending continue to follow slow, inefficient paper-laden processes. Additionally, compliance and content burden for mortgage banking has become economically unsustainable.
So, how can banks improve the availability of information and capitalize on new opportunities? How can they achieve process efficiencies and improve customer satisfaction while reducing the cost of non-compliance?
The cost of process and compliance is only expected to rise, banks and other financial organizations need to leverage ECM technologies and build digital mailrooms with centralized imaging for specific departments. They should start by taking a holistic approach to managing content across the enterprise–digitize and capture without duplicating or replicating all customer data and supporting content within the enterprise’s operations, then manage, route and decision, those digital-only documents throughout the enterprise in an automated fashion.
Unisys, with its InfoImage ECM solution, has helped several customer-facing and back-office departments maximize the impact and value generated from the content-process union, enabling them to manage regulatory compliance, increase efficiencies, reduce compliance costs and TCO. We help banks take advantage of the cloud and easily migrate from On-Premise to Cloud-Hosted to SaaS in order to help shift their budget from CAPEX to OPEX. InfoImage mobile app enables the bank employees to process loans faster and perform inquiries on the move.
Banks are ahead of the game when it comes to embracing new technologies. It’s time to look at ECM as more than a document management solution and take advantage of the other benefits that ECM, coupled with the right Mobility and workflow technology, has to offer.