Digital Transformation in Financial Services: Leveraging Document Management Solutions

For decades, financial institutions were burdened by document-intensive, manual processes and handwritten paper forms that later needed manual data entry into computerized systems. Or handfilled bank books that had to be frequently updated to reflect the account balance, not to mention loan application forms with the tiniest of boxes to be written out by hand—the list was endless!

But, in the last few years, digital technology has completely transformed how financial institutions look at information management.

Online forms replaced paper. Digital systems, self-serve portals, and automated platforms fundamentally changed how financial institutions handled customer information and financial data.

In this article, we will discuss the importance of digital transformation in the financial services sector—while emphasizing the role of document management in banking and financial services companies.

RDS offers specialized document management services for financial institutions, safeguarding sensitive data with encryption, access controls, and audit trails.

The role of document management solutions in financial services

Document Management Systems (DMS) played a pivotal role in ridding the financial services industry from the shackles of paper.

Employees who spent hours searching our paper documents, cross-referencing spreadsheets, and struggling with multiple copies of customer identification documents were set free with the adoption of digital records. 

The digital transformation journey begins with scanning paper and converting it to digital formats. But the process is hardly as simple as it sounds!

Financial institutions of every kind—from banks, insurance companies, credit unions, loan associations, brokerage firms or mortgage companies—all deal with sensitive personal and financial information, which is categorized as Personally Identifiable Information (PII). 

When you rely on paper for sensitive financial records, a lost or misplaced file can cause delays and hassle customers with rejected applications. Worse still, a missing document may hold back an important transaction and have serious implications downstream for businesses and individual customers. 

Data security and compliance are the most important considerations when architecting financial services document management solutions. 

Scanned files must be accurately indexed for quick search and retrieval. RDS uses advanced intelligent data capture technology (OCR) to extract key information from scanned images.

Once the financial records are well organized, they are stored in a secure and compliant document management system.

RDS offers OpenText AppEnhancer, a powerful document management system that empowers employees with the information required to get work done. 

Documents—even sensitive ones—can be quickly shared with others and distributed to other departments within the institution by allowing other software systems to integrate and access the documents for different workflows. 

AppEnhancer provides a comprehensive platform with file-sharing functionality coupled with strict access control settings. 

Benefits of financial services document management 

A robust DMS helps financial services companies standardize secure operating procedures and speedy digital workflows. 

It ensures secure and instant, role-based access to business-critical documents at any time, from anywhere, enabling faster communication and collaboration among employees, external vendors, as well as customers. 

Not to mention saving costs of physical records storage—which can be astronomical, especially in urban areas!

Financial services companies that have taken the leap into a digital transformation journey have experienced a range of benefits from digitization and process automation.

Let's look at some of these benefits in further detail:

Streamlined workflows

Document management puts your organization on the fast track to operational excellence. How?

  • It enables automated digital workflows, which break up an operational process into clearly defined steps. 

  • As each step is completed, the system alerts the employee responsible for executing the next step.

  • Approvals by managers or supervisory checks are executed seamlessly without allowing administrative bottlenecks, reducing the overall processing time. 

  • Delays are flagged off so managers can look into them and expedite resolutions.

  • Besides, as real-time information is easily accessible by all concerned departments and personnel simultaneously, there is no time lost waiting for a physical file to be sent from one department to another.

Improved collaboration

All digital files stored in a centralized document repository are easily accessible and shareable based on role-defined access controls.

  • A DMS allows teams to collaborate in real time, regardless of location.

  • It provides a secure platform for employees, vendors and customers to share files securely with all the mandatory compliance regulations for data security. 

  • Fast communication enhances customer satisfaction and provides a positive CX.

Enhanced security and compliance 

  • A robust DMS like AppEnhancer offers advanced version control features. It ensures that every employee accesses the latest, approved version of each document. 

  • It also provides an audit trail of who accessed or edited each document and when. 

  • Automated backups protect against accidental deletion of content of files and allow managers to revert a document in case of unauthorized edits or errors. 

  • Since approvals are obtained electronically, it reduces administrative expenses of shipping documents between offices and lowers the risk of the loss of documents in transit. 

These features enhance data security and help companies to adhere to stringent data protection compliances.

Cost savings

  • Transitioning to paperless processes translates to cost savings as it eliminates large-scale paper usage and reduces the costs of office printers and ink cartridges. 

  • However, the most significant cost savings come from reducing the need for expensive physical storage spaces. Depending on each company's document retention requirements and policies, we can retain digitized copies of documents and destroy the paper originals after they expire. A DMS tracks document expiration dates and alerts concerned personnel.

  • Lastly, with streamlined workflows and automated processes, your employees spend less time on repetitive administrative tasks. They can use their time for higher-value work, resulting in further cost savings for the company.

RDS: Document management specialists for financial services companies

Scanning and document management provide the foundation for a company's strides into a digital transformation journey.

Digitization and business process automation are vital for financial services companies to thrive in an increasingly digital world.

Digital technology improves the time and speed of communication and enhances efficiency. It ensures faster response time and results in higher customer satisfaction.

Revolution Data Systems specializes in document scanning services and document management solutions for document-intensive industries like financial services. 

Our solutions drive significant efficiencies while adhering to the industry's regulatory compliance norms. 

Take the first step of your digital transformation journey with RDS. 

Get in touch with our experts for financial services document management solutions.