The Document Dilemma in Financial Services | Quisitive
A stack of documents represents how the volume of documentation that flows through a financial services or banking organization can cause a slowdown in the process and negatively impact customer experience.
The Document Dilemma in Financial Services
July 30, 2021
Weldon Boley
Explore how loan document management can help improve customer experience in banking and financial services organizations.

The year 2020 brought on extreme change, and banks had to advance their schedules for implementing technical solutions that extended their reach while maintaining customer satisfaction. A sudden and unexpected need for change in the face of COVID-19 occurred in the middle of what has been deemed the decade of the digital revolution. While financial services companies categorically were among the most prepared to address such demands, the need to differentiate and personalize the consumer experience continues to grow exponentially. With more competition surfacing daily, banks are in dire need of speed and accuracy to ensure a flawless consumer experience, resulting in loyalty. The bottleneck in this system comes by way of documentation and the amount that needs identifying, processing, and taken to action, every second.  

As a self-user of several banking platforms, I can say firsthand that I expect a quick experience, without error, every time I visit my banking app or engage in a loan. In some respects, I blame being a millennial. Still, as Gen Z has also expressed impatience and experience-driven behavior, it is clear that the demand for promptness and accuracy will not go away. On top of that, regardless of generation, consumers expect a personalized experience more and more each day, causing banks to rethink their strategy for productivity, operations, and service.

It is no mistake that when such needs surface and become high in demand, technology and document processing meet face to face at the intersection of high-tech transformation. Microsoft has invested billions of dollars in ramping up its capabilities in the areas of Cloud Services, and with that have come solutions such as Azure Synapse, Azure Form Recognizer, Cognitive Search, OCR Digitization, Automated Document Classification, and more. The power of AI and Machine Learning lies at the center of these solutions. They maximize the potential for addressing such demands while taking the bank’s processes out of team member’s hands and putting them directly in front of the consumer in a productive manner.  

If you take a moment to understand and respect the amount of documentation that flows through a bank daily, let alone through one interaction, it is daunting. Document types include anything from KYC documentation to loan agreement forms, banknotes, bank statements, credit reports — The list goes on and on. The tricky part is not necessarily in the documentation itself but rather the interaction required between institutions to come together and form a product that fulfills a request. Each institution has its way of structuring forms and information. When you couple that with the amount of data flowing in and out, you quickly find yourself in a heap of unstructured data, slowing down the process. Combining the power of Microsoft technologies and Quisitive’s experience in delivering transformative solutions has put us at the forefront of high-tech innovation within financial services.

Loan Document Management (LDM) for Financial Services

I have been fortunate to cover the Banking Industry for Quisitive when so much change has taken place. There has been much to learn, but it has been clear that the need to address the document dilemma grows every day. One everyday use case we have engaged in the most is Loan Document Management (LDM). LDM not only encompasses the technology highlighted above to help streamline operations but includes the end-to-end platform for loan generation, verification, processing, issuing, and storing. Lenders service one of the highest in transaction loads, and for some of our nation’s largest loan lenders, these platforms are the heart and soul of their organization and serve as the backbone for all transactions. Any skip of a beat can result in thousands and up to millions in losses. Failure is not acceptable, and in cases where there are hiccups, millions in losses are incurred. Having now provided solutions for several LDM systems, we at Quisitive have the opportunity to bring our complete set of capabilities to the table, delivering a modern or reimagined approach for LDM design, implementation, and execution.

One key takeaway from our experience has been that every company has a custom solution to Loan Document Management. These systems are comprised of multiple applications and services built many years ago and have been slowly iterated on through the years by application development teams. The pain points remain consistent as these, now legacy platforms, are clunky and require an extensive backend infrastructure estate to maintain. Companies feel the pain of maintaining cost efficiency with any such environment as they are constantly up against hardware refreshes, maintenance, and expansion. With legacy backend environments come legacy processes that hinder the bank’s ability to have continuous deployment and integration, thus impacting their constant improvement. Among these pain points are the legacy solutions for loosely automating document dealing. Quisitive provides point solutions and innovates via AI, Machine Learning, and Cognitive Services to transform the business by providing what we have already reimagined for our customers.

By way of Quisitive’s Financial Services defined strategy for delivering a synergistic experience, LDM’s tell the whole story. Modernizing onto as-a-service platforms, adopting event-driven architectures, enabling insights through the power of data and analytics, and delivering information to front-line workers streamlines operations and creates a modern and seamless experience. To tie in the document dilemma to this use case, the high-tech solutions that exist for quickly identifying, parsing, and aggregating data from documents, transform the archaic experience of document management into a modern experience that follows the synergistic flow Quisitive provides. The information is now quickly accessible, does not exist in disparate systems (data that often goes lost), and most importantly, allows bank employees to focus on the data itself to create a value-added consumer experience in every touchpoint. Simply by removing the process from employees’ hands, banks find themselves with fewer errors leading to more reliability and more informed consumer interaction. Human error alone accounts for substantial losses, so taking advantage of high-tech automation and solutions directly impacts the bottom line for the better. Through this adoption, banks are finding themselves two steps ahead of their consumers, which creates a best-case experience internally and externally with modern appeal.

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