Nish Shah, chief technology officer, IMM, Linden, N.J.
Times have never been better to “GO GREEN” and electronically streamline all of those historically paper-based processes within a credit union. It’s certainly a win for the environment by eliminating the use of paper, but it also provides for many efficiencies beyond just paper. The credit union benefits from increased productivity by managing electronic documents rather than the time consuming and difficult job of manually retrieving paper forms from file cabinets when needed. Just as costly is the time consuming and labor intensive effort of scanning paper and add to that the limitations and errors that occur when physically indexing documents and the reasons to automate the process becomes obvious. Automation will not only reduce operating costs but will also create efficiencies allowing Credit Union employees to apply themselves to other more important work. “GOING GREEN” makes the credit union more efficient and the members experience quicker, better, faster service in addition to addressing environmental issues.
If your 80% electronic, your 100% paper…CUs need to be electronic all the way. Populating & signing a document electronically by an applicant and then printing it so a co-applicant can sign at a later date isn’t a solution, it just creates more paper to manage. Providing the facilities for applicants and co-applicants to be able to sign the same document electronically at a different branch and/or time while capturing an auto-indexed, electronic document image with the signatures embedded in the document is critical. Additionally, to gain the maximum benefits CUs should be looking for solutions that are not only in-Branch, but also provide signature capture via the web so that members can sign at home, at work or on vacation. To compete with the “Big Banks” that seem to have a branch on every corner, its imperative that Credit Unions utilize electronic technology solutions to meet their members needs & wishes outside the branch infrastructure. CUs need to look for a single Doc Prep and eSignature solution that can accommodate the various platforms run within the institution.
Sue Pogatschnik, Credit Union product manager, Wolters Kluwer Financial Services, Minneapolis
Automating documentation tied to lending, deposit and IRA accounts is an important step in helping your credit union achieve increased efficiency and improved compliance and risk management.
Before seeking automated tools to help you accomplish this, however, you should thoroughly assess your credit union’s existing documentation processes, systems and staffing levels while keeping in mind the credit union’s strategic goals and objectives.
Consider the following:
*Does the software support documentation that meets the credit union’s needs today and aligns with future growth objectives?
*Does the software automatically select the required documents based on transaction criteria, helping you take the guesswork out of document selection, improving compliance consistency and simplifying new employee training?
*Does the software make it easy to control and update lending or deposit policies and products, and ensure that updated policies are used consistently from branch to branch?
*Does the software offer time-saving features, such as standard templates, that allow you to preset and pre-fill data for frequently used transactions?
*Is the software easy to use? Is it easy to go back and make changes or work on multiple loans or accounts at once?
*Is the software easy to install and maintain?
*Does the software use industry-standard technology?
*Does the software easily interface with other systems? (i.e., core, identity verification, credit bureau, credit analysis, check ordering, etc.)
*Does the software vendor provide proactive, on-going compliance monitoring and updates?
If the answer is yes to all of these questions, it’s likely the solution will help you automate your credit union’s documentation process in ways that increase operating efficiencies and improve compliance and risk management.
Joe Rizzo, VP of Operations, USERS’ Maestro Group, Valley Forge, Penn.
To optimize your processes, reduce manual steps, and cut costs, you need to take a broader view and consider more than just the forms involved in a process. Start by evaluating the process itself and looking for problems like redundant or unnecessary steps or paper forms that could be eliminated.
Otherwise, you’ll end up automating a bad process that only exists because “that’s the way we’ve always done it.” Redesign the process to eliminate problem areas and get consensus from the appropriate groups at the credit union.
With consensus achieved, you’re ready to automate the process. One of the keys is integrating all of the different systems that are likely to be involved, especially for multi-step processes like account opening. Workflow technology can integrate those systems to ensure the process is efficient, easy, and consistent (which is critical for compliance). The technology can also eliminate redundant data entry by automatically populating data fields–improving accuracy, increasing productivity and speeding service.
As far as forms are concerned, avoid unnecessary paper by storing electronic copies to an optical system and using signature pads for forms that require a member signature. USERS’ Maestro Group has helped many credit unions improve workflow by evaluating, redesigning, and automating their processes using this approach.
Christopher Barber, SVP-CIO, Western Corporate FCU, San Dimas, Calif.
The first step is to accurately evaluate and select the required technology, which can provide workflow services. The second critical component is to accurately capture the current process as it exists in the paper format and then map it to how it might look in the workflow process.
Most paper process don’t lend themselves exactly to one that is automated and in addition and may need to be adjusted, by evaluating the current process you may find efficiencies that were not in the old process.
Dan Cheney, Teres Solutions, Austin,
Before developing workflow to automate forms, credit unions need to carefully select the right system for the processes they’re trying to automate. For example, for lending, a loan origination system has the workflow, forms and process automation built in for that part of the business.
Some even have the ability to tell you which forms are appropriate or the kind of loan you’re processing. There are also three other key things credit unions needs to keep in mind when developing workflow for automating forms. They include:
* Ensuring that you can pre-fill as much data as possible onto the form. For example, pre-populating things like the member name, address, account information, and collateral information, which you have access to in other systems.
* The workflow and forms must integrate with your document storage system so you can automate the process of archiving the forms for future use.
* Make sure you have digital signature integration with all your forms and workflow so you can automate the capture of signatures when required.
John Schooler, SVP-Real Time Solutions, Fidelity National Information Services Inc., Jacksonville, Fla.
A fully automated workflow combined with seamless document management is certainly the nirvana that all credit unions desire to reach. These technologies are in many stages of evolution from nothing to a number of component pieces that are less than fully integrated. Where you start depends on where you are today.
Your core provider and/or your LOS system provider can help you create a path for your credit union to achieve your goal. It is unlikely that there’s one “giant leap” technology you can implement to address this problem.
You’ll need to create a plan to get there in intermediate “hops.” Typically new account opening and loan origination are the biggest areas of need as these areas are the most forms intensive.
They are also the areas that most core vendors and LOS providers have the most workflow capability. You’ll also need an optical storage solution.
Once you tackle these two areas, you’ll want to identify the other miscellaneous forms utilized throughout the credit union and the processes they are supporting to determine how to address them.
One simple solution is to make all forms available on your intranet to eliminate the need for blank paper forms.
Readers: Ask CUJ Technology Panel Experts
Readers can leverage the Credit Union Journal’s panel of technology experts by submitting any technology-related questions to the panel Managing Editor Lisa Freeman at lfreeman
