Integra*ng Paperless Processes within Bank Applica*on

Integra(ng Paperless Processes within Bank Applica(on Marc Riccio, President Specialized Data Systems www.SpecializedData.com The Problem…  A typical four drawer file cabinet costs approximately $25,000 to fill and $2,000 annually to maintain  25% of all filing >me is spent walking  Average document is photocopied 19 >mes  32% of company's documenta>on is in use  It costs $60-­‐$120 to locate a misfiled document (10-­‐30 minutes)  Organiza>ons double filing volumes every 10 years To Sum It Up, We Have Informa(on Overload…  Too much >me spent looking for documents  Inaccuracies and lost documents  Duplica>ons and delays because of the need for extra copies, faxes and e-­‐mails  Less available space, resul>ng in increased costs for space and poor accessibility The Solu(on: Electronic Document Management (EDM) Imaging Func(onality Requirements  Leverages the latest Internet technology  Easy to learn and use  Maintain compliance with excep>ons tracking  Simple to deploy  Scan and annotate documents  Electronic signatures  Revisions  Subscrip>ons Imaging Benefits  Instant access to documents  Eliminates misfiled documents and the >me associated with finding them  Access documents from any banking applica>on including core applica>ons (Signature cards, loan files)  Minimizes storage space requirements  Eliminate excep>ons with tracking  Easy distribu>on  Increases produc>on Popular Integra(on (Capture) Op(ons  Scanning with barcode especially with Loan Origina>on System  Scan In batch mode  Scan via browser  Drag and drop  Capture email and applica>on files (PDF, JPG WRD, XLS, etc…)  Capture electronic signatures E-­‐Signature Laws E-­‐signature Law Effec1ve Date Electronic Signatures in Global & Na>onal Commerce Act (ESIGN) October 2000 Uniform Electronic Transac>ons Act (UETA) August 1999 Disclosures/Deliveries  Disclosures and deliveries can be made exclusively in electronic form  If a disclosure is required to be given to a consumer, then ESIGN requires a special “ESIGN Disclosure” if such disclosure given exclusively by e-­‐delivery e-­‐Record Reten1on ESIGN allows an electronic record to sa>sfy applicable statutory requirements that a document be retained “in wri>ng” if the electronic record is maintained in a form capable of being retrieved by all par>es for later reference. No more difficult, more onerous or more expensive than retrieving paper records. Electronic Signatures  “e-­‐Signature”: electronic sounds, symbol, or process aeached to or logically associated with a contract or record and executed or adopted with intent to sign the record. – Many different forms of e-­‐sign technologies – Clicking “I AGREE” or saying “I AGREE” – One may sign electronically a tangible document – Can also use a voice signature to sign a “hard copy” Electronic Signatures: Signature Pads Electronic Signatures: Click Wraps  Click-­‐wrap is the electronic equivalent of the shrink-­‐wrap method which allows users to read the terms of the agreement before accep>ng them. Going Paperless – Here’s How It Works… Whether it be checking statements from your core system... Whether it be electronic signatures... (1) Print To
eSign
eSign It!
Whether it be email or snail mail ... Whether it be printed documents from your LOS... All the documents should end up in your CENTRAL REPOSITORY (Imaging System) ROI ~ e-­‐sign for Loan Closing Documents Example of a Commercial Bank jus(fying Imaging  Commercial Bank  100MM Assets  Commercial, Real Estate & Consumer loans Under Mountains Of Paper we found...  77 Daily Reports  12 Weekly Reports  30 Monthly Reports  2 Quarterly Reports  2 Yearly Reports  123 Total Reports  1,800 pages per day  36,000 pages per month  432,000 pages per year  175 Cartons of Paper Filing Cabinet Expense  17 file cabinets in use  3,000 documents per cabinet  204,000 total documents  100+ sq. n. used  50-­‐60 documents received per day  2 new file cabinets per year Offsite storage expense  10 boxes in offsite storage  3,000 documents per box  30,000 documents  + 2 boxes per year  30 documents retrieved annually  45 minutes per request  22 hours wasted! The Envelope Please… The annual COST of a manual filing system in a typical $100MM Financial Ins>tu>on Conclusion! $$$$$
Jim Neri
Consultant
[email protected]
  Document Management focuses on the storage
and organization of documents to support
active work in progress.
Enterprise Content Management (ECM) relies
on content types. A content type is a group of
reusable settings that describe the share
behaviors of a specific type of content.
ONE – We need ECM, to become MORE
EFFICIENT. Deployment of ECM is being
driven by the ever increasing VOLUMES of
information there.
 TWO - Because of the economy, we need to
look for ways to increase PRODUCTIVITY
and achieve a ROI. ECM can deliver the
ROI in a relatively short period of time.
 THREE - Because of the increases in
REGULATION. We need an even better
AUDIT TRAIL.
 We need to TRACK documents and
EVENTS.
 FOUR - We need to store documents
SECURELY in a more SECURE working
environment.
 FIVE - We need to insure BUSINESS
CONTINUITY, and information reliability.
 AIIM Research 2010
© 2009 AIIM - Find, Control, and Optimize Your Information
ECM needs to be wrieen for the Web.    Scanning software needs to be nonproprietary (TWAIN)
Scanners are more and more economical
Capture in remote locations has become more
practical
© 2009 AIIM - Find, Control, and Optimize Your Information
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eSignature can eliminate or substan(ally reduces prin(ng costs.  Included to name a few…  SAS70 cer>fica>on  audited financials  security agreement  disaster recovery plan  con>ngency planning  and more…  You need a log that will record when a document has been  viewed  printed  e-­‐mailed  or revised. In some ECM systems, document reten>on policies can be set on each document type.    Mul>ple layers of user security down to the document level is possible. Documents with sensi>ve data should be encrypted. Rights/Permissions Based Security: Someone in new accounts may not have the rights to view loan documents.  Only HR may have the rights to employee documents  Preparing for an Audit?
Audits can be conducted quickly and efficiently when searching by content can be employed The IT manager for a 65,000-member credit union said,
“We no longer have to try to figure out when documents
need to be destroyed. We’re saving about $5,000 a month
in staff time to streamline processes or work done by
hand.”
© 2009, Forrester Research, Inc
ECM can help reduce expenses