To answer this question, we recently conducted a survey of 95 community banks. You can download a summary report of our study here.
Upon reviewing all of the responses we received from bankers, we feel that one banker related the struggle that many institutions face regarding setting up an automatic workflow process when he said:
“Everyone is doing what they want. Everyone needs to be on the same page and send electronically.”
These sentiments seem to be a frustration for many of the financial professionals we surveyed. In this article, we’ll relate the workflow struggles many institutions are dealing with and give you a closer look at the data revealed in our survey.
Paper Versus Electronic
When asked how institutions route internal documents, 40% responded that there seems to be an even split between the use of paper and electronic files. 35% of institutions rely on paper for routing most internal documents, and only 20% of banks rely on paperless internal workflows. Financial institutions ranked speed concerns (26%), bottlenecks (26%) visibility issues (23%) and data loss (23%) as common issues with paper documents.
Automate Workflows for Best Results
The increase in approval and routing speed associated with an electronic routing system was cited as the greatest benefit for 56% of financial institutions surveyed. Productivity naturally increases with a faster process, increasing results and keeping both internal and external stakeholders happier.
According to our survey, a cumulative 60% of banks feel that exception automation (electronic exception reporting and tracking in addition to automatic generation and distribution of exception reports) would increase efficiency in their institutions. Electronic loan application routing (24%) also appears to be an area where an automated workflow process could prove to be beneficial for banks.
What’s the Solution for More Effective Workflows?
Paper technology seems to create frustration for many bankers. When given the chance to share what causes stress, one banker related that “pieces are electronic, pieces are not. Those that are paper get lost or misplaced.” Another shared, “We don’t have an electronic signature for the final approved document. So it is printed and passed around for signatures. Sometimes it gets lost in the process and never makes it to the file.”
Of the financial institutions surveyed, 31% of bankers felt that they “desperately needed” a more automated system in order to close more loans. Institutions still have room to improve regarding how loans are internally routed and approved.
Is your bank seeking a way to increase efficiency and automate workflows in the document imaging process? AccuSystems can decrease wasted time related to this common struggle for financial institutions.
Click here to request a demo of AccuAccount’s document management software.