As the digital world is continually evolving, banks nowadays need to be innovative, flexible, and secure to meet the expectations of tech-savvy customers. For the traditionally established financial institutions, things have become more complicated due to both the current COVID-19 situation and the rise of "living in the cloud" fintech apps and platforms. With most employees working from home and customers hard to reach, it becomes vital for banking institutions to have robust online tools to keep up with this changing environment.
Companies in financial services and insurance have already embraced a great deal of digitization. However, going paperless has still often been looked at as a costly challenge, and it can be a daunting task to convert an archive into electronic documents in one go.
This makes enabling a comprehensive document management solution for their business the best way to solve this problem. A cloud-based DMS can be more than just a document manager; it streamlines financial operations, delivers business efficiency, and help them achieve assured compliance.
Here are five reasons why having a comprehensive Document Management System is important for running a financial institution.
1. Centralized auditability
Whether your company is a financial institution or a company's finance department, your organization probably handles a massive amount of information. Managing all this information can be a challenging task while your business grows. Most every activity in a finance document, from submission to review to approval, needs to be audited.
A complete Document Management Solution guarantees a unified, organized repository for all your documents, enhancing data auditability. It should offer both comprehensive dashboards to get an overview of data reports and detailed, time-stamped information on each file and employee activity. Managing all this data from a single location will help to ease the burden of strict audits.
2. Increased document reachability
Picking out a balance sheet from an ocean of files in your desktop storage can be as tricky as searching for a single-page document in an old-school filing cabinet.
With cloud-based content management platforms like WorkDrive, tracking down files become easier than ever. You can locate files by searching for author name, text or images inside the file, and even objects within images. This means everything in your document is indexed and easily searchable.
3. Enhanced collaboration
Consumers play a significant role in the working model of any financial institution. A good DMS allows a financial advisor or a bank salesperson to easily share files like invoices, purchase orders, receipts, or credit card statements, with their customers and collaborate with them no matter where they are.
Adding to that, sharing files with specific users with the right permission will considerably reduce the risk of data theft and keep your clients' sensitive information secure.
Most document management platforms also provide document embedding, through which users like banks can embed customer support elements such as guidelines or help documents in their customer emails web pages, or electronic commitment documents.
4. Upgraded regulatory compliance
As finance is one of the most regulated industries, financial organizations should ensure their data is kept safe and secure while providing useful information to their customers when needed.
With a DMS, your electronic files are securely stored on the cloud, in full compliance with all regulatory and legal requirements. Moreover, audit trails for the document's lifecycle will track and report activity data for future use. Additionally, the security settings in most cloud-based platforms offer user permissions at various levels to restrict unauthorized access.
5. Improved mobility
Going mobile with digital document management can reduce workplace pressure by providing 24/7 remote access to crucial finance documents. Digital banking powered by an appropriate DMS allows banking support centers to feed useful and updated information to their customers on the go.
Even more importantly in our current time, it is possible to manage your institution remotely when your employees are connected through the content management platforms via mobile apps as well. A powerful DMS like WorkDrive will ensure effective data access, even when your employees work from their homes across the globe.
Using a good DMS provides multiple other advantages, such as minimal dependency on in-house IT support, thanks to reduced infrastructure and network complexities.
Many businesses find it challenging to let go of outdated practices and approaches. As the financial industry works with sensitive information under tightly controlled industry regulations, banks and other financial institutions should start making use of the benefits offered by a fully featured DMS to satisfy the modern-day user's needs and demands.