Significant IT constraints hinder Credit Unions from becoming truly digital and delivering distinctive member experience—doing things like migrating basic transactions from physical to digital channels, creating API-driven open banking, and shedding cost and complexity of legacy-based architectures. Most often, the barriers stem from the Credit Union’s underlying legacy core banking platforms.
“Financial institutions are in a bind. Legacy systems, processes, and relationships make innovation extremely difficult, even as new technology ramps up user expectations and attracts new competitors. Many firms still struggle with making a digital transformation, even as their future growth may depend on it.” (source: PWC)
A survey by AIIM of executives from 48 banks and insurance companies confirms this:
91% of respondents said, “Our information management strategy needs to be modernised to meet modern problems.”
93% said, “Digitising and standardising business inputs is one of the key bottlenecks for Digital Transformation.”
57% stated, “My organisation is concerned that we could face serious disruption of our business model in the next 2 years.”
On average, 58% of the unstructured content and information used in enterprise business systems is stored WITHIN those enterprise systems (and thus unavailable to other processes) INSTEAD OF in a Content Management System. (source AIIM Research)
Many legacy Credit Union core banking systems were designed around large-volume, mission-critical processes. These systems did the job within these processes, but they were not designed for easy integration with other core enterprise applications. The resulting silos of information tied up in single process, application-specific repositories now stand in the way of the efforts of Credit Unions to redefine their business processes around member experiences.
Credit Unions need to think beyond the core platform itself to achieve true transformation, modernisation and efficiency.
The purpose behind the modernisation of both the technology and the approach to innovation should be to provide all things needed to drive member growth and retention while helping your Credit Union drive efficiency ratios and improve management of resources. However, simply updating core technology won’t give your Credit Union the complete transformation it needs. This change requires thinking beyond a core platform and into integrating complementary products that both maximise efficiency now and leave the door open for future innovation. Today’s core should have the ability to leverage existing technology investments by providing open connectivity between the core platform and existing third-party solutions.
The business case for core agnostic member information management
The Information Management market is experiencing rapid growth due to a “perfect storm” of events and technologies that make information management invaluable. The influx of highly diverse content from a variety of systems and repositories points to the urgent need for Credit Unions to invest in information management in order to take control of all types and sources of content.
Credit Unions are looking to Information Management, or ECM, systems to create order where there is chaos, and given the vast amount of data and content they seek to analyse, maintain and store on a daily basis, content management is providing Credit Unions with the means for them to take control, creating workflows that allow their employees to be more effective and efficient while complying with regulatory rules and regulations.
Overall, Information Management allows Credit Unions to use new and existing sources of content to drive higher levels of efficiency and improve productivity. In addition, it secures Credit Unions from potentially devastating data breaches and data losses and controls access to confidential information.
Information Management or ECM solutions continue to provide Credit Unions with a proven and reliable solution to effectively capture, store, manage and share content. As ECM technology continues to evolve and mature, Credit Unions will be able to leverage content management for more functional applications that also support members and other external stakeholders. The next generation information management platforms will continue to enable Credit Unions to address critical concerns, including security, compliance and managing the accelerated creation of content from many sources, including mobile devices.
The issues and statistical data provided in this paper build the case for the implementation of an information management system to mitigate risk due to data loss, compliance failures, general operational inefficiency, but also to avoid potential legal fallout by creating a systematic and organisational culture of efficiency.
How Digital Documents can help
Digital Documents Streamline Credit Union operations with M-Files Intelligent member record management and Credit Union business process automation
M-Files supports Credit Unions ever increasing compliance obligations and drives the Credit Union’s digital transformation.
M-Files provides a centralised system and approach for classifying and storing member records and for maintaining version control. It also automates workflows; integrates with core banking systems to reduce data silos; and provides security by limiting access to only authorised individuals. It also provides a full audit trail of document access, versioning, and approvals that Credit Unions need to maintain quality and prove compliance. Most importantly, M-Files drives daily compliance processes such as record retention management and alerts key personnel about tasks that require attention.
When it comes to managing vast amounts of information Credit Unions simply cannot operate at maximum efficiency without the ability to easily search, share and protect their critical records and documents.
M-Files automates operational workflows like loan applications or new membership applications. That means you can ensure consistency while M-Files verifies that every step in your business process is followed.
Utilising M-Files to automate front and back-end Credit Union processes ultimately has a positive effect on the member experience. When employees have fast access the right member-related information, issues can be resolved expeditiously, and member satisfaction improves.
Increase productivity with automated workflows
Credit Union productivity improves 39 percent when electronic forms replace paper and workflows are used to streamline processes, according to AIIM research, which shows that there is significant scope within most Credit Unions to improve both staff productivity and customer response time by eliminating paper from the process.
Save time with digital signatures
With digital signatures, staff and advisors can spend more time building relationships with members and less time trudging through administrative chores. So much time is spent printing forms, keying in information, photocopying and then scanning to get documents back into digital format. Digital signatures free Credit Union staff to have higher value conversations with members. Digital Signatures cut document workflow cycles from weeks to days – or even minutes.
Reduce the burden of compliance with automated processes
CU Vault drives daily compliance processes such as record retention management and alerts key personnel about tasks that require attention.
Contact Digital Documents to learn how our core agnostic member information management solutions can help accelerate innovation, drive process efficiency and ultimately enhance the member experience.