Data is critical to the operations of any financial institution. The wide range of operations and massive customer base generate huge numbers of transactions per day. These transactions go through a carefully planned verification process, which covers many aspects of an applicants (bank account/loan/credit card applicant) home and financial history.
These processes are critical to any financial institution, as they ensure that these companies offer their services to citizens who are more likely not to default on their payments because of their regular inflow of funds.
However, even today all these processes are being conducted on paper and that is the reason they face many challenges during this process.
The major challenges faced by financial institutions (NBFC’S, MFI’s & BANKS) are listed below:
• Storage– Paper documents are stored in files which occupy floor space. The papers for internal and external communication need to be stored and maintained separately in specific categories.
• Retrieval– Retrieval becomes difficult as clerks needs to search through drawers of folders and papers before they can find the right document. This results in a massive loss in time for the company and results in delay of the application process.
• Mobility– Moving these files from desk to cabinet is a tedious job and introduces the possibility of lost documents.
• Manpower– There is a major investment in manpower to handle and maintain these folders and documents apart from hiring on-field executives who go door to door implementing these verification processes.
• Knowledge Management– Creating, distributing and maintaining knowledge, then reusing it many times as and when required; becomes too tedious.
• Forms Processing– Designing forms, defining templates and fields, extracting data from filled in forms, data entry, verification and preparing reports is extremely complicated and consumes a lot of time.
• Application Approval Process– The application approval process, when done on paper, takes way to long to be processed; as approvals need to be taken from several different departments of a financial institution.
So, taking in all these cons in mind; our suggestion to the financial sector is simple: Go Digital!
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