How to Efficiently Meet Document Management Challenges in the Financial Institutions

by | Last updated Mar 28, 2023 | Published on Nov 18, 2015 | Document Conversion / Scanning Services

Document Management ChallengesFinancial organizations such as banks rely a great deal on paper-based information such as loan applications, tax returns, correspondence, appraisals and other paperwork. Every day new records may have to be created for new clients or to make new deals, and so there is a never ending array of forms that need to be completed. These increasing piles of documents mount up until the office is overrun with paper. And the solution?None other than document scanning and digitization of the paper documents.

To reduce the time taken to process payments as well as ensure better customer service experience, companies in the financial industry have to streamline their processes and organize their work. Banks, credit unions, lenders and other financial institutions are scanning their important paper documents to achieve their organizational goals. With document imaging, financial organizations can process data quickly and more efficiently since customers’ documentscan be obtained and information authenticated in an automated way.

Here are some of the typical documents that a financial organization needs to handle.

  • Business tax records
  • Mortgage documents
  • AP AR invoices
  • Finance and accounting records
  • Proof of delivery records
  • Rebate forms

The Challenges in Document Management

Data is critical to the operation of any financial institution. The wide range of operations and massive customer base generate a huge number of transactions each day. The major challenges that a financial organization may face are as follows:

  • Paper documents are stored in file cabinets which occupy a lot of storage space. The papers for internal and external communication have to be stored safely and maintained separately in specific categories.
  • Retrieval of data is another challenge; it becomes difficult as clerks need to search through a lot of drawers, folders and papers in order to find the right document.
  • Moving files from desk to cabinet is a tedious job. There is also the possibility of losing important documents during this movement.
  • Maintenance of these records becomes difficult year after year as these papers are perishable in nature.
  • A huge investment is required in manpower to handle and maintain these folders and documents.

How Scanning and Digitization Is Beneficial

  • Single repository of documents for the entire company
  • Workflow management for effective routing of electronic documents, where documents and folders are tracked and processed
  • Document scanning, indexing and storage will become easier
  • Documents can be retrieved quickly and effortlessly
  • Increases information security
  • Quicker handling of requests for information
  • Scan directly into business application

Points to Consider When Choosing a Scanner

  • Whether you will scan the documents at their source or send them to a centralized scanning area.
  • What type of documents you plan to scan – ID cards, checks, deposit slips, other types and sizes of documents.
  • The space available to accommodate the scanner.
  • Whether professional scanning technicians are available to do the job or whether you need to recruit new staff for the same.

The scanning process can prove to be quite rigorous and demanding and it would be a good option to consider outsourcing this to a reliable document scanning company. A firm with a good standing in the industry and many years’ experience will already have in place efficient scanners that can easily handle all the typical documents used in the financial industry. They will also have trained and experienced staff to manage the entire process ensuring efficiency and productivity.

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