Digitization improves back office operations in banks

Digitization Improves Back Office Operations in Banks

The article discusses how digitization is improving the efficiency of back office functions in banks

Digital technologies and the banking industry are no strangers. Digitization can have a positive impact on the banking industry. Many U.S. and European retail banks have struggled to fund the projects necessary to modernize all front- and back-office operations according to a recent report. There are certain reasons for the slow rate of digitization and the continued reliance in core legacy systems: 

Replacing legacy systems without impacting running operations is a challenging task



Expensive to upgrade



Mergers and acquisitions across the industry

However, if banks move ahead with digital conversion of back office operations, they would enjoy many advantages. Back office often involves a copious amount of data and paper files. These can be well managed with enterprise content management character recognition).

Advantages of Digitizing Banks Back Offices

A well-implemented document management system can ensure efficient information management with digital (web-based) scanning and imaging, document sealing, and encryption in addition to document indexing and bar-coding. 

OCR helps convert scanned documents to machine-readable format files.



The system can reduce the time spent to locate, retrieve, and file documents by 75%.

www.managedoutsource.com

800-670-2809



‘Digital signature’ is another advancement through which the delays in collecting signatures can be considerably reduced. This improves file processing efficiency and reduces paper cost.



By scanning and converting paper documents into electronic format, centralization of back office operations can accomplished quite effortlessly.

Moving common activities to a central system creates a shared service model, allowing easier reporting, and better management.



Conversion of documents to digital format improves competitiveness, saves storage space, and reduces operational costs



It automates business processes, such as account opening, lending, or payments to reduce costs



Process bottlenecks if any can be detected much easier, allowing rapid corrective action



Going digital provides greater visibility and process transparency and promotes compliance with industry regulations

According to a recent report, U.S. Bancorp has gone digital and freed itself from dependence on paper. The bank now enjoys the benefits of handling loans electronically rather than “passing around sheaves of paper”. They have been offering paperless consumer loans for more than 6 years and have recently taken steps to automate account opening. All their digital processes have become quicker, with fewer errors and less paper to be filed in a cabinet. Moreover, less bureaucracy and faster answers have made customers happier than before.

www.managedoutsource.com

800-670-2809

Complexity in replacing legacy systems and setting up technology infrastructure are the major restrictions for banks to move towards a digital environment. If banks don’t upgrade, they will eventually lose customers and volume. Outsourcing digital conversion to a reliable document conversion company is an ideal option to accomplish the digitization goal. This can help banks make a slow transition, without affecting their operations and workflow.

www.managedoutsource.com

800-670-2809