The benefits of automating document management for banks

by Joerg Vollmer - August 2018

Why do banks need to invest in a digital transformation?

Financial institutions are under pressure to implement change due to ever more demanding clients and a financial market characterized by low margins. Clients are no longer loyal for loyalty’s sake. If a bank’s operations are not efficient, they cannot offer the best service, nor the best value. In which case they will find themselves falling behind in the race for digital enlightenment.
 
On the other side, there is pressure to keep pace with the advancing process of digitalization. 
 
Outdated IT systems often hamper an agile and efficient transformation process. One solution is to outsource end-to-end business processes to specialized partners, such as Swiss Post Solutions. These are then made more efficient through the application of intelligent automation technology and rightshoring operations. Outsourced document management projects at major international banks show that these measures are successful even in the short term. 
 

Digitizing internal business processes 

Customers are driving banks to digitize their business processes. Customer service channels are increasingly geared towards their personal preferences. In a bank,  digital files supplement the bank counter along with paper documents, necessitating an omnichannel customer service strategy. 

Digital Customer Experience in the Finance Industry

As things stand, document use is a digital-paper hybrid in 75% of cases. Consequently, most financial institutions are placing the customer experience at the heart of their digitalization strategies. They offer convenient online banking, apps and digital tools. 
 
Banks communicate with their clients via email, WhatsApp or web chat services, and modern collaboration tools. This means that within the financial industry at least, the first robo-advisors are already in use. 
 
Behind the digital front end, many internal processes are still being conducted very traditionally. A single change to a client’s master data set (e.g. an address change) at a bank frequently involves several people and IT systems. Small changes can take up an excessive amount of valuable working time. This is the case even if the client data has already been digitally transmitted via a web form processing through technologies like Optical Character Recognition (OCR) or Natural Language Processing (NLP). 
 
Such complex processes require fluidity. However, businesses still utilize a wide range of media, including paper. It is precisely here – in the area of document management – that there is untapped potential for optimization. This potential can be leveraged very quickly, without the need for major IT integration projects and thus also very efficiently.
 
Organization, determination and strong staff are no substitutes for AI and RPA technologies, process know-how and best-practice experience. Without this, any digital transformation process will be an arduous endeavor.
 

Optimize processes from end to end

The digital transformation process is far from complete when an app is programmed or a process step has been digitized. This is only the beginning. Around 70% of all banks are planning to invest in end-to-end digitization and RPA.  
 
Document management remains a hybrid world in which digital data – both structured and unstructured – will continue to exist in parallel with physical documents. Innovations, ranging from robotic process automation (RPA) via artificial intelligence to cognitive computing, will still occupy the industry for some time to come. 
 
The next step is, therefore, comprehensive process analysis and the end-to-end optimization of hundreds of processes. Here, artificial intelligence is already helping in extracting data from unstructured information contained in texts freely formulated by clients. In addition to making this available as structured data for further automated processing. 
 
Software robots can then work further with this data directly on the existing human-machine interface. They transfer data to a screen and in doing so initiate further process steps. Together with employees at the right place and at the right time onshore, nearshore or offshore locations depending on the data. The existing optimization potential can quickly be exploited and a process can be accelerated from end to end. 
 
To learn more about Swiss Post Solutions Document Management Services,
 
 

The key to the digital transformation for Banks

Artificial intelligence and RPA are on the way to achieving full digitization, but even these developments only represent intermediate stations. In a few years, cognitive computing will provide systems that not only learn but also identify and dynamically solve tasks themselves. 
 
This must already be taken into account today in the relevant strategies. The described the end-to-end approach, therefore, maintains a permanent and forward-looking view of the entire process chain. 
 
The benefit for banks is obvious. Through business process outsourcing (BPO), the work and risk involved with testing new technologies transfer to the BPO experts providing consultative and supportive services. 
 
The investment risk is minimized, as is the necessity for institutions to always evaluate cutting-edge technology themselves. As a result, the bank offers clients a perfect customer experience across all channels whilst simultaneously and optimizing its internal document management. And the financial industry keeps pace with the challenges of the digital revolution.
 

Digital Transformation Partner

Swiss Post Solutions are an experienced and innovative global full-service provider of physical and digital document management services. We provide a comprehensive suite of document processing and BPO services to support the digital transformation efforts of our clients’ business processes. 
 
We have vast experience helping companies in the financial sector to step onto the path of digital transformation and drive forward their digital transformation strategy for optimization and modernization of their business processes.
 
To learn more about how we could improve your business process efficiency and customer satisfaction, boost revenue and grow your business in a hybrid-digital world,
 
 

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