A Perspective on Paperless Banking – Part 1 (3 Part Series)

I recently attended the Illinois Bankers Association 122nd Annual Conference & Trade Show where I had the opportunity to hear several notable speakers, including bankers, academicians, advisors, and regulators. One of those speakers, Jack Vonder Heide, CEO of Technology Briefing Centers, Inc., presented several illustrations of new types of technology banks may want to consider as they strive to become paperless.

Below I give a brief summary of two particular technologies, and what impact these have on banks and their customers. While technology is just one piece of a larger puzzle, banks are continually looking for innovative ways to streamline processes, improve efficiencies and reduce operations costs.

As a disclaimer, we pride ourselves on our independence and objectivity. The references below do not represent endorsements of the vendors or solutions; rather, they are illustrations.

Illustration #1: Paperless Account Opening: Andera and its oFlows solution

“Paper is the devil,” exclaims Scott Pitts, Chief Product Officer at Andera. “The best way to get rid of paper is to never create any in the first place.”

Andera is a Software as a Service company. It’s oFlows solution enables banks and credit unions to originate deposit accounts and loans online, in the branch, over the phone, and in the field, using a single platform that is optimized for Macs/PCs, smartphones, and iPad/tablet devices.

In other words, it enables paperless account opening. With oFlows, applicants simply take pictures of their documents, e.g. using iPad® built-in cameras. Then, Andera delivers the pictures instantly to your bank or credit union. In addition, it lets applicants sign their paperwork just by signing their screens with a finger or stylus.

For more information, view the oFlows Mobilize Demo

Illustration #2: Paperless Commercial Loan Servicing: Luminous and its BankFiling solution

Luminous touts that its BankFiling solution creates a secure digital “pipe” directly to banks’ loan customers’ accounting information.

In other words, it enables paperless commercial loan servicing. With BankFiling, banks continually receive up-to-date information on their loan customer’s business performance in an electronic format. This information includes management accounts, debtors, stock and annual financial statements among others. Banks no longer need to allocate precious resources to continually chase customers for this information. It arrives in one secure place in an electronic format.

For more information, see www.luminousbanking.com

Again, we do not endorse the solutions above; rather, we think they illustrate some of the types of technology solutions that may enable banks to become paperless. Also, they do not replace the need and opportunity to focus on other critical areas such as process, training, policies, and procedures. As Eli Goldratt wrote, technology is necessary but not sufficient.

We will elaborate on this concept in Parts 2 and 3 of this series. In Part 2, we will discuss critical components of optimizing a solution, which include training, communications, project prioritization, and monitoring. In Part 3, we examine how internal policies and procedures may inhibit banks from becoming paperless.

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