In a world of technology and automated electronic systems, going paperless is fast becoming the norm for any business that sends its customers important documentation on a semi-regular basis. Banks are no exception to this. Most people with a UK bank account will have been asked by their bank to go paperless at least once, whilst banks themselves are pushing to ditch the paper in order to run a more efficient service.
Going paperless doesn’t just help the planet and cut down on unnecessary waste; it helps customers stay more organised, reduces the risk of information being stolen, and helps with customer service. That being said, moving to an entirely paperless model does mean document management needs to be strategically thought out, and that’s what we’re going to help with today.
At Lightico, we work with a myriad of banks and finance companies, helping them to streamline their operations through paperless document management. We’ve compiled some of the most relevant information on the topic into this handy guide.
What are the benefits of paperless document management for banks?
There are a number of benefits that going paperless and implementing digital document exchange can have from an operational and service perspective, including:
Reduced risk
Creating and retaining documents containing important information can pose a series of security risks for obvious reasons. When you have a wide customer base and frequent correspondence for each customer, the amount of documentation you’ll amass over the legal timeframe for record keeping will be huge. This is not only a logistical nightmare, but it’s also a goldmine of sensitive information that can be targeted by criminals.
Storing things digitally is far less of a physical demand, and it’s easier to implement cyber security practices that remove human error for this type of documentation.
Reduced storage and disposal costs
As mentioned, keeping paper copies of important documentation for years at a time takes up a lot of physical space. This needs to be paid for, in addition to the necessary security measures that need to be considered, maintained and adapted when disposing of sensitive material.
Secure access to information
Digital document management is easier to manage from an authorisation point of view. You can ensure only a select number of employees have access to certain documents, and auditable logs track access. You can also implement safe third-party uploading processes, which means customers can access and upload secure information any time, anywhere.
Expedite loan processing
Going into a branch is time consuming for customers and inefficient in terms of securing things like loans. Oftentimes, it’s a cumbersome exercise to verify someone’s identity and is a hassle for everyone involved. With paperless systems, you can provide customers with a portal to upload relevant documentation remotely, verify their identity, and sign agreements digitally, without having to ask them to come into a branch. This is far more efficient.
Quickly locate information
In the case of audits, it can be tricky trying to find the right document in a timely manner when you have thousands of pieces of correspondence. A digital system makes it much easier and faster to locate documents, making it better suited to audits.
How will a paperless document management system benefit banking customers?
It’s clear there are plenty of benefits to banks when it comes to paperless systems, but what about customers? Well, there are a lot of advantages for them, too. Some of the top benefits include:
Better customer experience
Any time you streamline a process, you are allowing for an improved customer experience. A lot of customers want to have everything they need at their fingertips; many simply do not have the space or the organisation in place to warrant keeping documents for years on end.
We live in a digital world where everyone is used to having things at hand, especially with the rise of challenger banks. Paperless document management means your customers don’t have to keep letters and spend hours trying to find the right one; they have everything they need in the palm of their hands.
More efficient application process
Moreover, digital document exchange makes it a lot easier to apply for things like loans. Without the need to go into a branch, customers can do all of the things listed below right from their phones:
- Digitally upload and download documentation: Instantly upload documents such as applications, and download documents such as bank statements straight to a mobile or desktop.
- Digital acceptance of terms and conditions: Read and accept documents instantly via a digital device.
- Provide eSignatures on documents: Use an eSignature to sign and date important documents.
- Digital ID verification: Upload photo ID such as a passport or driving license to quickly verify customer identities.
How much does it cost to implement a paperless document management system?
The exact price of going paperless will depend solely on your business’s individual situation. In any case, switching to digital is sure to save you money in the long run. In fact, we have found that by removing the inefficient overheads caused by operating costs such as document processing and handling times, banks can reduce their overhead costs by up to 75%. This reduction in cost means you can invest money elsewhere.
How can Lightico help with paperless document management for banks?
At Lightico, we have worked extensively with banks and financial institutions to help them streamline their operations, save money, and improve customer experiences. We have years of experience working with some of the biggest banks in the country, helping them to digitise their document management systems.
To find out more about how we can help your bank do the same, and to receive a demo and a quote, please contact us today.
