According to recent forecasts, banking and securities are among the top vertical markets with the greatest potential for IT spending growth, which comes as no surprise given the vast amount of confidential data usually stored and managed by antiquated systems with limited accessibility options. Technology advances and cloud-based solutions are dramatically impacting enterprises in every industry, including businesses within banking and financial services. By implementing cloud-based document management solutions, banks can optimize workflow productivity, increase the efficiency of IT managers and safeguard documents in case of emergencies.
Below are the major pain points that the banking industry faces and how these problems can be solved with cloud-based document management:
Conquer Document Overload
It is estimated that more than 81% of adults in North America have at least one bank account at a formal financial institution. With multiple customers come various documents that are required to support daily banking operations, including audit preparations, credit and loan files and customer records.
The multitude of files generated presents a predominant challenge for small and regional banks with limited availability of space and resources. Small -to mid-sized businesses (SMBs) in the banking industry should invest in cloud-based document management systems, enabling organizations to manage records efficiently without having to maintain bulky file cabinets. Additionally, by providing external branches and offices with direct access to files via the cloud, interoffice collaboration is enhanced. Instead of wasting valuable time filing and retrieving documents, employees can increase daily productivity and dedicate more time toward pleasing current and potential customers.
Boost IT's Utilization
In a world dependent on technology, companies spend an inordinate amount of their budgets on IT solutions. In fact, the most recent forecasts indicate that worldwide IT spending is on track to reach $3.8 trillion this year. Overseeing document management has historically been a responsibility of the IT department, stealing valuable and costly time away from IT managers.
By using cloud-based document management systems, banks can improve IT efficiency by dramatically reducing the time dedicated to managing document management systems, allowing more time to focus on forward-looking projects. Document management solutions established in the cloud are unlike previous solutions since they do not require an upfront capital investment or ongoing maintenance of hardware or software, which are maintained by the cloud provider.
Prepare Your Backup Plan
Numerous regulatory guidelines have been enforced on banks to ensure the utmost level of security is provided when handling confidential personal information of customers. Standards, such as those proposed by the Federal Financial Institutions Examination Council (FFIEC), strongly urge all financial institutions to do their due diligence into researching all vendors before selecting a cloud solutions provider in order to ensure data is maintained and secure at all times, including threats of malicious activities and natural disasters.
To adhere to these policies without cloud services, current process requires IT to maintain backups of existing systems, as well as plan for disaster recovery (flood, fire, earthquake, hurricanes, etc.). This adds additional work and the expense of backups and second physical locations for a second server.
Banks that implement cloud-based document management systems receive an extra service of backup and disaster recovery as part of the cloud solution. Cloud-based document management reduces the time and money IT spends by consistently monitoring files as a standard part of the cloud service and allows the services to focus on maintaining redundant systems and regular backups.
Cloud-based document management systems enable banks to streamline core business processes, thereby decreasing downtime and boosting productivity. By employing document management systems, banks can differentiate themselves from competition by ensuring better customer service, improving IT operations and increased protection of confidential customer data.
Aaron Weiss is the director of marketing for LaserJet and Enterprise Solutions in the Printing and Personal Systems Group of Hewlett-Packard Company. His organization is responsible for driving the product and marketing strategy for a portfolio of document management, workflow, capture, mobility, security and fleet management solutions targeting the SMB and enterprise customer segments.