Jaiye looked out his office window to see a ship passing on the horizon. As the CFO of one of the largest banks in Nigeria, Jaiye liked facing challenges. One of his pastimes was watching the ships because they reminded him of how banking always evolves. There were always new regulatory guidelines from the regulators, disruptive technology had increased, and Fintechs competed to get part of the banking customer base. Banks had to bring their best performance to keep up with the changes and address problems.
Managing documents is a huge challenge for banks as they try to meet sales targets, delight customers, and follow regulatory guidelines. Thankfully, technology has helped address this issue. Document automation, in particular, is the perfect solution to many of these challenges.
As his assistant walked in with his next meeting, he remembered a financial conference he recently attended. One of the speakers was Akintayo from Flowmono, who spoke about how banks could save time and money with document automation. He remembered the questions he asked Akintayo, which I am sure you need answers to. What is document automation? How does it work? And most importantly, how did implementing it help his bank save time and money? This article answers these questions and more. Read on to discover how this can be the solution you need.
What is Document Automation?
Document automation uses technology to create, manage, and process documents with little human intervention. It automates repetitive tasks like data entry, formatting, and compliance checking by pulling data from different sources and inserting it into document templates.
Kim Mayberry, founder and CEO of document automation software company Knackly describes it as “Document automation is the process of putting form fields and conditional logic into a template, so it can be filled out and a document can be produced faster. If you have a very transactional document, like a contract or sales proposal that you use regularly and simply needs some variable blanks filled in, that’s a good candidate for document automation.”
Many banks have adopted document automation. In our experience, the reasons vary from its ability to increase productivity and streamline workflows. A recent survey by HotDocs shows that document automation reduced the time spent creating documents by 90%! Imagine the time you have left to deal with more important matters!
How Does Document Automation Save Time and Money for Banks?
Let us understand the different ways document automation can save time and money for your bank.
Reduced Data Entry Errors
A report by ZoomInfo revealed that dirty data costs businesses more than $611 billion annually. Dirty data includes inaccurate, inconsistent, and incomplete information. For banks, this usually happens when you transfer data from paper to computer. Some errors happen when analysts misspell names, enter figures inaccurately, and mix up addresses. My wife, for example, had her date of birth entered as the 11th of July instead of the 7th of November, and this error affected her BVN! These errors sometimes take months to find and even more time to correct them. According to Harvard Business Review, some banks carry out manual checks, which can take up to 55% of an analyst’s time. Can your organization spare that time?
For Jaiye, automating document generation has helped accurately capture data, verify questionable information, and notify the user if the information is incomplete, false, or entered incorrectly. It has become a lot easier to deal with data entry, saving his bank a lot of money and time.
Enhancing Customer Onboarding and Experience
Automation plays a major role in simplifying the onboarding process for new customers. Before now, paperwork and verification procedures made it complicated. Customer-facing web portals and APIs help collect essential financial data and customer information. This integration with external data sources ensures accurate customer information and reduces manual data entry errors.
For instance, instead of filling out multiple forms and submitting physical documents, customers can now upload necessary documents online, where automated systems verify their identity and financial status in real-time. Banks can provide a smoother onboarding experience by automating document collection and verification.
Loan Approval Time
There are many stages involved before a loan can get approved. Customer management, credit report check, presentation, approval, and portfolio risk management. All these processes involve documents and that takes up a lot of time. Loan approval in banks takes weeks, with endless paperwork and manual checks. There may be some errors in the process which is frustrating for customers. There is also the pressure of knowing there are loan apps that get approved almost instantly.
With document automation, this process is now much faster. Automation collects and verifies data from various sources, ensuring all necessary documents are accurate and complete. This means fewer errors and quicker approvals. Customers no longer have to wait long for loan decisions. Automated systems flag any issues, allowing analysts to focus on complex cases. This speeds up the approval time, giving customers faster access to funds. Your bank, too, can see a dramatic reduction in loan processing times, saving both time and money while keeping customers happy.
Improving Compliance and Risk Management
Compliance is a cornerstone of banking operations, with strict regulations necessitating meticulous record-keeping and regular audits. For Jaiye, compliance and risk management are critical areas where document automation shines. In the banking industry, adhering to regulatory guidelines is non-negotiable. Manual compliance checks and risk assessments are time-consuming and prone to human error. Document automation streamlines these processes by ensuring that all documents meet regulatory standards.
By integrating document automation, your bank can reduce the risk of non-compliance penalties. Automated systems keep up-to-date with the latest regulatory changes and apply them across all relevant documents. This ensures consistency and accuracy, making audits smoother and more efficient. With less risk and better compliance, you can focus on strategic initiative, knowing your bank is safe and well-regulated.
Enhancing Security Measures
Security is a top concern for banks, especially in today’s digital age where cyber threats loom large. With document automation, banks can add strong security measures on who can access important documents. It also gives extra protection through encryption, which means only the right people can see sensitive info.
By using document automation, your bank shows customers that their info is secure. This smart move saves time and money. You can confidently assure clients that their personal and financial information was protected by state-of-the-art security measures.
Save Up To 85% By Signing Up On Flowmono
Flowmono’s document automation platform offers banks a way to save up to 85% on document processing costs. These savings are achieved by cutting down on manual labor, reducing errors, and speeding up processes that typically take weeks.
Flowmono provides a powerful and easy-to-implement solution that can transform your bank’s operations. By signing up, your bank can save money, improve efficiency, and delight your customers. This is a smart investment that pays off quickly, allowing your bank to focus on strategic initiatives and stay ahead in the competitive banking landscape. Don’t miss the chance to revolutionize your bank with Flowmono’s document automation platform. Speak to Akintayo about creating a Flowmono account today.
