Electronic Content Management in the Banking Environment
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Electronic Content Management in the Banking Environment
Abstract
This paper will explore the application of electronic content management (ECM) in the banking industry. The question is, “Would an electronic content management solution improve operational efficiency in a banking environment?” For research material subject matter experts were interviewed, the NECB and the Boston Public Library databases, professional trade and industry journals and internet forums deemed credible were utilized. After viewing this paper, the reader will have a better understanding of what the term ECM encompasses and how a financial institution may benefit from storing documents electronically. By managing documents in a virtual environment as early on as possible in the process, efficiencies were realized, compliance issues were addressed and the misplacement of documents were minimized. A cautious approach to implementation is required in order to ensure effective acceptance and ongoing satisfaction.
Introduction
Many banks are seeking ways to improve their day to day operations. From start to finish, they are looking for an effective way to improve existing processes and mitigate risk while gaining efficiencies. Is electronic content management (ECM) the way to accomplish this? Where do they begin a project of such magnitude? What are the payoffs? Is it truly a more efficient way to run a business? These and many other questions are addressed in this paper. Before beginning, first a bank must understand the concept to be better equipped to answer these questions.
What is Electronic Content Management?
Electronic Content Management (ECM) is the capture, storage, retrieval and management of documents, records, emails, and other papers that make up a file within an organization. This includes methods and tools used throughout the life cycle of a document. The use of ECM tools and strategies facilitates the organization of a businesss information. The content is then used to achieve business goals. To drive understanding of these tools this perspective emphasizes a typical process of content as well as four primary areas which are the main focus; compliance, collaboration, continuity and cost. (AIIM 2010).
Benefits of Electronic Content Management
There are many benefits to be gained with a well managed ECM solution. First of all, the automation of processes within a business results in a financial savings and increased productivity. Once a document is stored electronically it can be backed up, mitigating the loss of valuable documents. In a physical environment, documents can be multi-managed. As they are accessed, they are often copied and filed by individual users for their own purposes. By electronically storing a document, end users are able to share the same records for their intended use, freeing up valuable space and time. In the banking world, a document must undergo scrutiny for various reasons; because of this, documents must be constantly updated. Today, most ECM software allows the most current record to be managed through the use of “versioning” where outdated documents are archived (i.e. tax returns, statements of income). The chances of a physical document becoming misplaced are greater than that of an electronic document. Automation is paramount to the successful processing. The benefits are realized in operational efficiency and improved customer satisfaction. (L. Alcorn 2005)
Hurdles
Although there are numerous reasons to embark on this processing method, an institution should keep in mind that it is a huge cultural shift and should be introduced in a prudent manner. Everyone should be brought onboard and understand that this is the way a financial institution has chosen to proceed. Additionally, an organization must take into consideration the staffs tolerance for change and growth. While many will welcome this new technique, others may find it intimidating and resist this foreign process until confidence is established. Because it is a new way of doing things, it will initially take more time and resources to address issues as they are encountered. This may be seen as a negative to some employees. The initial out of pocket costs will be substantial but when weighed, the return on investment for both hard and soft dollars far outweigh any money and time invested (Robert L Mitchell 2006).
Repercussions
So, what could possibly go wrong with an ECM conversion? According to Jeetu Patel, who co-runs Doculabs, there are eight areas to avoid. “ECM implementations tend to have lower adoption rates in relation to what was initially anticipated.” (Patel 2010). Another area cited was failure to achieve