Bringing the Future to the Present: Workflow and Electronic Document Management Deliver ROI, Service, and Satisfaction to Lending Institutions

Banking, mortgage, and finance industries have a long and complicated history with respect to their use of electronic document management (EDM). The relationship is perpetually evolving. Nowadays, lending institutions use EDM for automated workflow, secure storage and retrieval, loan documentation, streamlined loan processing, and improved customer service, among other practices. This wasn’t always the case, however. Initially, lending institutions served as EDM pioneers in an effort to improve internal efficiency. EDM was used to capture print streams and reports, archive checks and other documents, and retrieve archived information.

These days, the multitude of information stored and administered by lending institutions—checks, customer account statements, identification verifications, applications, etc.—can be a challenge to manage. Organizations often have legacy and/or customized systems which can be difficult to integrate with other processing applications, making it challenging to take full advantage of the information that is stored. Customer demand for faster turnaround time—coupled with Sarbanes-Oxley (SOX), Gramm-Leach-Bliley, and other regulations—emphasizes the need for improved efficiency from loan origination to pay-off. Companies that had adopted EDM systems originally to improve internal efficiencies are discovering that external motivators—such as increased competition and a need to expedite processing—can also be addressed with a robust EDM system.

Increased customer expectations

Expedited services offered through the Web have increased customer expectations for faster turnaround time and accelerated processing. To serve their client base and to attract new customers, lending institutions are tasked with finding ways to integrate disparate silos of information. This helps them to decrease errors and minimize time wasted on inputting data into (or retrieving data from) multiple systems. Legacy and in-house systems that may not communicate with other applications can obstruct this objective. Consequently, organizations are turning to technology to find ways to assimilate their diverse (and often unique) software environments. Lenders strive to implement measures to improve customer service, speed up the lending process, decrease costs associated with loan generation, simplify compliance with federal and state regulations, establish a disaster recovery process, and improve accuracy and efficiency.

Mergers and buyouts

In short, lenders are searching for ways to use technology so that they can do more with less. This endeavor can become complicated. Organizations in this industry face constant opportunities for partnerships, mergers, and acquisitions. This offers occasions for even more software systems to be incorporated into the mix. Potentially, one organization could have several document management systems in place at the same time. Lenders need to determine whether they wish to continue to use separate EDM systems throughout their enterprise, or whether they could be more productive with one repository that oversees and integrates their existing systems. Scalability of an EDM system is also an important consideration, so that if further mergers or acquisitions take place, productivity will not be compromised.

Expanding services to take advantage of technology

As technology evolves, banking, mortgage, and finance organizations have expanded their capabilities in order to meet customer expectations. Many lending organizations have implemented automated workflow in order to take advantage of electronic signatures, Web check and statement presentment, electronic form submissions, and automated loan processing. Email messages and their attachments, faxes, and other formerly paper-intensive correspondence can also be routed electronically with workflow. Workflow ensures that the right information is routed automatically to the right person for processing at the right time. At the same time, it standardizes processes to help facilitate SOX and other compliance measures. A robust workflow tool has the ability to integrate with legacy systems and varied applications. It can significantly reduce cycle times, and even expedite internal processes such as those associated with HR.

Using workflow with EDM to improve competitive standing

Visionary lenders are increasingly using automated workflow in conjunction with EDM, as it enables them to achieve nearly paperless processes. When customers are sent information through the mail that requires a response, a lending institution can add barcode technology to the outgoing mail, ensuring that as soon as it is returned, the barcode will be read and it can enter the appropriate workflow for processing. Repetitive keying and a large amount of data entry are eliminated. Formerly paper-intensive processes can take place with little or no human intervention. With less keying, there is less potential for errors. Staff no longer has to spend tedious hours filing and searching for information. It is all available immediately, with the click of a mouse. Customer queries can be addressed without delay, and organizations are able to process more work with fewer people.

As lending institutions adopt technology enhancements and paperless processes, they discover that they can achieve a competitive edge by increasing their capabilities and providing better and expanded customer service. Processes and information are more easily managed, and regulatory compliance measures can be automated. A robust EDM and workflow combination can work with other products, including CRM, ERP, HR, mortgage origination, loan processing, and account management software. It can even provide audit trails that help to optimize efficiency and security.

For many lenders, automated workflow and EDM provide the one-two punch that puts them well ahead of their competition. By integrating their architecture, organizations are assured that their systems are operating at peak efficiency. Legacy systems have the ability to communicate with diverse software applications. Information is no longer lost, duplicated, or misfiled, and can be accessed with the click of a mouse. Best of all, customers receive the detailed attention to which they have become accustomed. Immediate answers, fast and proficient service, and quick turnaround time will ensure that your organization is able to attract and retain customers well into the future.

For more information or to schedule a demonstration, please Contact DocFinity now.