Process Revolution in Banking
and Insurance
AIIM White Paper
Sponsored by
ProcessRevolutioninBankingandInsurance
1© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.c...
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2© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.c...
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AIIM White Paper: Process Revolution in Banking and Insurance

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The banking and insurance communities are constantly seeking ways to improve their operational efficiencies
and reduce their risks. Highly regulated, they need to identify and focus on process improvement that supports
regulatory compliance, while providing enhanced operations with reduction in operating costs.
Typical key drivers for process change include cost, headcount reduction, compliance, and improved customer
experience. Drivers could be vertically specific, or focused on more general horizontal business processes.

A determination must be made whether requirements are unique or specific, and which processes are prime
candidates for improvement.

Cultural readiness is also a consideration. Organizations must assess the appetite for process change and the
purpose of the change. Perhaps it is removing paper, a key step to performance improvement. Outsourcing might
also be a candidate. Would they consider outsourcing parts or all of the process and just as important, how is
outsourcing perceived within their organization? Another factor is the perception of outsourcing in relation to
inbound and outbound processes.

When it comes to decision-making on process initiatives, this may be a head office function or devolved to local
level. How the organization operates will also be influenced by corporate demographics including location, and industry type. Within the finance and insurance sectors, regulatory guidelines will differ across different products, and the same holds for location. The rules in one region or country will vary, sometimes being dramatically
different. While this will likely influence the use of outsourcing and the choice of supplier, it does not preclude it as a viable part of an overall solution.
In this report we will explore and measure the reasons why financial organizations are undertaking process
improvement projects, where eliminating paper sits within these activities, and attitudes toward outsourcing.
Based on our key findings, we will present some conclusions and recommendations for those who work in the sector and are undertaking these types of project.

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Transcript of "AIIM White Paper: Process Revolution in Banking and Insurance"

  1. 1. Process Revolution in Banking and Insurance AIIM White Paper Sponsored by
  2. 2. ProcessRevolutioninBankingandInsurance 1© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com About the White Paper As the non-profit association dedicated to nurturing, growing and supporting the user and supplier communities of ECM (Enterprise Content Management) and Social Business Systems, AIIM is proud to provide this research at no charge. In this way the entire community can take full advantage of the education, thought-leadership and direction provided by our work. Our objective is to present the “wisdom of the crowds” based on our 80,000-strong community. We are happy to extend free use of the materials in this report to end-user companies and to independent consultants, but not to suppliers of ECM systems, products and services, other than Swiss Post and its subsidiaries and partners. Any use of this material must carry the attribution – © AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Rather than redistribute a copy of this report to your colleagues, we would prefer that you direct them to www.aiim.org/research for a free download of their own. Our ability to deliver such high-quality research is made possible by the financial support of our underwriting sponsor, without whom we would have to return to a paid subscription model. For that, we hope you will join us in thanking our underwriter for this support: Swiss Post Solutions AG
 Pfingstweidstrasse 60b 8080 Zürich Switzerland Email: solutions@swisspost.com Website: www.swisspostsolutions.com Process used and survey demographics The survey results quoted in this report are taken from a survey carried out between 13 December 2013 and 03 February 2014 with 138 responses from individual members of the AIIM community surveyed using a Web-based tool. Invitations to take the survey were sent via email to a selection of AIIM’s 80,000 registered individuals. 72% of the respondents are from North America and 17% from Europe. They cover a representative spread of financial and insurance industry sectors. Results from organizations of less than 11 employees have not been included, bringing the total respondents to 131. About AIIM AIIM has been an advocate and supporter of information professionals for nearly 70 years. The association mission is to ensure that information professionals understand the current and future challenges of managing information assets in an era of social, mobile, cloud and big data. AIIM builds on a strong heritage of research and member service. Today, AIIM is a global, non-profit organization that provides independent research, education and certification programs to information professionals. AIIM represents the entire information management community: practitioners, technology suppliers, integrators and consultants. AIIM runs a series of training programs, including the ECM Master course. www.aiim.org/Training/Certificate-Courses/Enterprise-Content-Management About the author Bob Larrivee is Director of Custom Research at AIIM, and an internationally recognized subject matter expert and thought leader with over thirty years of experience in the fields of information and process management. Bob is an avid techie with a focus on process improvement, and the application of advanced technologies to enhance and automate business operations. © 2014 © 2014 AIIM Swiss Post Solutions AG 1100 Wayne Avenue, Suite 1100 Pfingstweidstrasse 60b Silver Spring, MD 20910 8080 Zürich (+1) 301 587-8202 Switzerland www.aiim.org www.swisspostsolutions.com
  3. 3. ProcessRevolutioninBankingandInsurance 2© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Table of Contents About the White Paper: About the White Paper.............................................................................................................................. 1 Process used and survey demographics.................................................................................................... 1 About AIIM................................................................................................................................................... 1 About the author.......................................................................................................................................... 1 Introduction: Introduction................................................................................................................................................3 Key Findings................................................................................................................................................3 Drivers for Process Change: Drivers for Process Change.....................................................................................................................4 Outsourcing: Outsourcing...............................................................................................................................................8 Outsourced Processes: Outsourced Processes.............................................................................................................................8 Suppliers: Suppliers....................................................................................................................................................9 Benefits: Benefits......................................................................................................................................................10 Conclusion and Recommendations: Conclusion and Recommendations........................................................................................................11 Recommendations......................................................................................................................................11 Appendix 1 - Survey Demographics: Survey Demographics.............................................................................................................................. 12 Survey Background..................................................................................................................................... 12 Organizational Size..................................................................................................................................... 12 Geography................................................................................................................................................... 12 Industry Sector............................................................................................................................................ 13 Job Role...................................................................................................................................................... 13 Underwritten in part by: Swiss Post Solutions.................................................................................................................................... 14 AIIM.............................................................................................................................................................. 14
  4. 4. ProcessRevolutioninBankingandInsurance 3© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Introduction The banking and insurance communities are constantly seeking ways to improve their operational efficiencies and reduce their risks. Highly regulated, they need to identify and focus on process improvement that supports regulatory compliance, while providing enhanced operations with reduction in operating costs. Typical key drivers for process change include cost, headcount reduction, compliance, and improved customer experience. Drivers could be vertically specific, or focused on more general horizontal business processes. A determination must be made whether requirements are unique or specific, and which processes are prime candidates for improvement. Cultural readiness is also a consideration. Organizations must assess the appetite for process change and the purpose of the change. Perhaps it is removing paper, a key step to performance improvement. Outsourcing might also be a candidate. Would they consider outsourcing parts or all of the process and just as important, how is outsourcing perceived within their organization? Another factor is the perception of outsourcing in relation to inbound and outbound processes. When it comes to decision-making on process initiatives, this may be a head office function or devolved to local level. How the organization operates will also be influenced by corporate demographics including location, and industry type. Within the finance and insurance sectors, regulatory guidelines will differ across different products, and the same holds for location. The rules in one region or country will vary, sometimes being dramatically different. While this will likely influence the use of outsourcing and the choice of supplier, it does not preclude it as a viable part of an overall solution. In this report we will explore and measure the reasons why financial organizations are undertaking process improvement projects, where eliminating paper sits within these activities, and attitudes toward outsourcing. Based on our key findings, we will present some conclusions and recommendations for those who work in the sector and are undertaking these types of project. Key Findings Drivers for Process Change: n Faster, more efficient processing is the top driver (56%) for process change, closely followed by cost reduction (55%). Organizations are increasingly seeking better ways of working, to increase operational efficiencies and decrease processing times, which in turn will reduce overall operating costs. n 52% of respondents indicate regulatory compliance as a strong driver and focus for process change. Regulatory compliance is a global challenge that can result in heavy fines and in some countries, imprisonment if non-compliance is found. n Records and document management is viewed as the most likely common business processes for improvement. With a top rating at 57%, this is an indication that each new regulation is adding to the number and variety of records that need to be held right across the business. n Paper removal from all business processes is viewed as a key corporate objective for performance improvement by 41% of respondents. A further 35% would want to remove paper for certain processes. n Time spent searching for and filing paper is the biggest issue cited for paper-based processes (51%). When combined, 62% indicate lost paper files and poor access are still significant paper-related issues. n 46% have centralized the capture of incoming mail and 32% use distributed capture. The desire for paper removal is on the rise, with an emphasis to capture the inbound content as early in the process as possible. Outsourcing: n Internal consultants and executives favor outsourcing, while operational staff, LOB managers and legal departments are reluctant. Executives and internal consultants see things with an eye on improvement and keeping the business running efficiently while staff, managers and legal are concerned with information security and risk management. n While 40% of our respondents outsource some or all of their outbound mail, only 10% outsource an inbound digital mailroom. However, 22% do outsource capture for specific forms and processes, suggesting that process improvement still occurs in silos, at the department level, rather than considering cross-process capabilities.
  5. 5. ProcessRevolutioninBankingandInsurance 4© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com n Decisions about outsourcing are being made at the head office according to 59% of respondents. Governance and standardization is a mantra now resonating in many organizations, which is an indicator that head office decision-making is an attempt to gain control over technology and suppliers. Suppliers: n 65% of the respondents indicate they maintain a supplier list of some type while 36% indicate use of restricted lists. Long-term relationships and proven performance are important for customers when it comes to their choice of supplier, rather than necessarily the cheapest bid. n 36% of respondents indicate insourcing of services staff is a preferred option, with the work being done on-premise. 37% indicate they will never outsource to an overseas location, which supports the concerns over security and compliance risk. Nearly 50% are happy to outsource their physical records management. n While outbound processes are more likely to be considered for outsource over inbound, 29% feel that using a single source supplier across inbound and outbound processes could be a sensible strategy. A further 30% would consider it if they could be re-assured about scalability and flexibility on the part of the supplier. Benefits: n 62% of the respondents indicate outsourcing would allow them to focus on their core business activities. By not having to spend time and resources on content and process management, organizations can turn their attention toward product and services development. n 60% of the respondents indicate outsourcing would deliver cost and efficiency savings. This ties back to the drivers of increasing efficiency and decreasing costs. Outsourcing will lower overall operating costs and when automation is put into use, operating efficiencies increase while error rates will likely decrease. Drivers for Process Change Faster more efficient processing is a focal point for banks and insurance companies. Improvements to capturing transactional content and data using automation and outsourcing will result in consistency, cost reduction, and improved customer service. Our survey shows that the top three key drivers for process change are faster processing (56%), cost reduction (55%), and compliance and regulatory requirements (52%). Consistency supports compliance and when you look at the fourth selection, improved customer experience (44%), it stands to reason that if you focus on the top two, an improved customer experience will follow. Figure 1: What are the three key drivers for process change in your organization or department? (N=131) 0% 20% 40% 60% Process efficiency – faster processing Cost reducƟon Compliance requirements – regulaƟons Improved customer experience – customer-facing Process efficiency - error reducƟon Improved customer service – back-office accuracy and response Compliance requirements – culture change Headcount reducƟon Product raƟonalizaƟon
  6. 6. ProcessRevolutioninBankingandInsurance 5© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Expanding the customer base and superior customer service are vital in growing and maintaining market share. Organizations able to quickly process new accounts, loans and mortgage applications are meeting immediate consumer demands. Yet, it is not enough to bring them onboard quickly. Once customers are part of the client base, it is essential they remain satisfied with the services provided, or they will move away to the competition at the earliest opportunity. Switching is much simpler than ever it was. Looking at the most likely industry-specific processes for improvement, we find that although account opening or onboarding leads the way (36%) it is followed at number two by customer communication and contact (32%). We also find that compliance (29%) has appeared in the number three position here as it did when we asked about key drivers. This indicates concerns over meeting the strict compliance guidelines in the finance sector. Figure 2: Which industry-specific business processes are the most likely candidates for improvement? (N=130) We asked our respondents to think about the one or two business processes that are the most important candidates for improvement, and whether they view the requirements as specific to the organization, to the industry, or more general. The majority cited requirements as specific to the industry as a driver. This is to be expected due to the regulatory nature of the finance and insurance industries (45%). What is of greater interest is the level of response indicating requirements are more specific to the organization (32%). When looking at this more deeply, we find that this view is equally shared between IT and the business units (42%) indicting an internal awareness and desire for operational improvement. In reality, perceived requirements may not be so very unique, and we would always recommend using a sector-experienced consultant, or a dependable business process service provider to audit current practice and suggest potential improvements. When asked about common business processes like correspondence, product development, etc., we found that the number one process targeted for improvement is records and document management (57%). Internal processes like approvals and QA are cited as the number two targets at 36% each, while 22% indicate correspondence as their target process. It is interesting how records and document management are viewed as process, indicating that the focus is on how content is processed rather than the content itself. This is where improved efficiency through consistent practices and automation will benefit in reducing costs and supporting risk management and compliance. Compliance requirements – regulaƟons Improved customer experience – customer-facing Process efficiency - error reducƟon Improved customer service – back-office accuracy and response Compliance requirements – culture change Headcount reducƟon Product raƟonalizaƟon 0% 5% 10% 15% 20% 25% 30% 35% 40% Account opening / on-boarding Customer communicaƟon and contact Regulatory compliance Loan / mortgage applicaƟons Payment processing Middle office Risk and fraud management Case-based: claims, invesƟgaƟons etc. Renewals Treasury management 0% 20% 40% 60% 80% Records and document management Other internal processes, eg. approvals, quality, etc. Customer correspondence, help desk Product development and roll-out Contracts, procurement, shared-services Internal HR processes, expenses, Ɵmesheets, etc. Finance, accounts payable (invoices) Finance, accounts receivable (credit control) FaciliƟes management, buildings maintenance LogisƟcs, delivery, manifests, etc. None of these Yes, the organizaƟon embraces trans- formaƟonal Change is difficult in my organizaƟon with many barriers to
  7. 7. ProcessRevolutioninBankingandInsurance 6© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Figure 3: Which common business processes are the most likely candidates for improvement? (N=129) This leads to the discussion about willingness to change and organizational readiness. Flexibility in business is essential in meeting customer and regulatory demands. When asked about organizational readiness related to process change, the majority indicates a culture where dramatic change is embraced when appropriate (47%), while 32% indicate it is more variable across processes or departments. Process improvement projects should include the capture and management of content early in the process. This will result in increased consistency in the way content is managed, reduced risk of lost information, and streamlined processing times. Added benefit is gained through the use of recognition for data extraction and metadata application, and deployment of automation technologies to launch the appropriate workflows and direct information to the appropriate resources for processing. Figure 4: Is there an appetite in your business for dramatic process change? (N=130) Paper reduction is high on the list of drivers related to process improvement and performance. For many (47%) this is a corporate objective while others (35%) indicate paper removal from specific processes is their objective. Loss or misplacement of paper-based information is a risk and cost factor. Paper is an impairment slowing processing, review, and approval times. 51% indicate their biggest issue as time spent searching and filing paper copies. Case-based: claims, invesƟgaƟons etc. Renewals Treasury management 0% 20% 40% 60% 80% Records and document management Other internal processes, eg. approvals, quality, etc. Customer correspondence, help desk Product development and roll-out Contracts, procurement, shared-services Internal HR processes, expenses, Ɵmesheets, etc. Finance, accounts payable (invoices) Finance, accounts receivable (credit control) FaciliƟes management, buildings maintenance LogisƟcs, delivery, manifests, etc. None of these Yes, the organizaƟon embraces trans- formaƟonal change projects, 17% Yes, but backed up with suitable jusƟficaƟon, 30% It depends on the department / process involved, 32% Improvement is needed but we prefer to do it in incremental steps, 11% Change is difficult in my organizaƟon with many barriers to overcome, 11% Regulatory compliance Loan / mortgage applicaƟons Payment processing Middle office Risk and fraud management Case-based: claims, invesƟgaƟons etc. Renewals Treasury management 0% 20% 40% 60% 80% Records and document management Other internal processes, eg. approvals, quality, etc. Customer correspondence, help desk Product development and roll-out Contracts, procurement, shared-services Internal HR processes, expenses, Ɵmesheets, etc. Finance, accounts payable (invoices) Finance, accounts receivable (credit control) FaciliƟes management, buildings maintenance LogisƟcs, delivery, manifests, etc. None of these Yes, the organizaƟon embraces trans- formaƟonal change projects, 17% Yes, but backed up with suitable jusƟficaƟon, 30% It depends on the department / process involved, 32% Improvement is needed but we prefer to do it in incremental steps, 11% Change is difficult in my organizaƟon with many barriers to overcome, 11%
  8. 8. ProcessRevolutioninBankingandInsurance 7© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Figure 5: What would you say are the biggest issues caused by paper-based processes in your organization? (N=131) Paper removal requires some form of capture that can be automated to streamline the index-and-store process, or even trigger workflows. As stated earlier, it is preferred to capture this content as early in the process as possible. This reduces the risk of loss and makes the information available to the organization sooner. Many organizations have set up centralized capture through digital mailrooms using either a large mailroom scanner or multiple production grade scanners (46%). Other organizations have pushed capture into their remote locations at the department or branch level (32%). Although modern capture technology is both more effective and easier to implement, the physical handling and document preparation tasks can make outsourcing of mailroom services an attractive proposition. Figure 6: Do you operate any of the following “digital mailroom” scenarios (i.e., scanning, capture and electronic distribution of general incoming mail)? (N=131) 0% 10% 20% 30% 40% 50% 60% Time spent re-keying data, searching for paper copies and filing Inability to monitor workflow progress Compliance and audit issues “Lost” paperwork or case files Poor access to case or process documents for front-office/call-desk staff Storage volume and outsource paper-store costs Difficulty of re-allocaƟng or re-locaƟng workloads Delays introduced by post, courier or mailroom Difficult collaboraƟon with external partners Inability of staff to work from home or on the road 0% 5% 10% 15% 20% 25% 30% 35% Distributed capture in departments, branch-offices, etc. Centralized through a large mailroom scanner or scanners Centralized using mulƟple producƟon scanners Outsourced capture of some incoming mail types Outsourced capture of all incoming mail None of these 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Business improvement consultants C-level execuƟves Finance managers IT operaƟons Finance operaƟonal staff OperaƟons/FaciliƟes/Post-room managers Records Management/Compliance 0% 10% 20% 30% 40% 50% 60% Time spent re-keying data, searching for paper copies and filing Inability to monitor workflow progress Compliance and audit issues “Lost” paperwork or case files Poor access to case or process documents for front-office/call-desk staff Storage volume and outsource paper-store costs Difficulty of re-allocaƟng or re-locaƟng workloads Delays introduced by post, courier or mailroom Difficult collaboraƟon with external partners Inability of staff to work from home or on the road 0% 5% 10% 15% 20% 25% 30% 35% Distributed capture in departments, branch-offices, etc. Centralized through a large mailroom scanner or scanners Centralized using mulƟple producƟon scanners Outsourced capture of some incoming mail types Outsourced capture of all incoming mail None of these 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Business improvement consultants
  9. 9. ProcessRevolutioninBankingandInsurance 8© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Outsourcing Outsourcing is one of the options regularly being discussed and explored in the finance and insurance sectors for process rationalization. While security is still a point of concern (61%), outsourcing is a favorable option for executives and internal consultants who see things with an eye on improvement and keeping the business running efficiently. When asked where the decisions are made regarding outsourcing, 59% indicate they are made at the head office, perhaps preventing local initiatives or pilot projects. Figure 7: How would you describe the attitudes of the following staff in your organization to outsourcing processes? (N=124) Outsourced Processes Around half of organizations outsource their outbound processes such as mailers and statement printing, and 26% outsource managed print services for their internal printing. 19% are happy to leave the running of physical mail distribution to contractors. Yet only 10% currently outsource inbound mail processing in the form of a digital mailroom. Having said that, this number is set to double given the plans described by our respondents. Also set for an increase are what we can consider to be single-point applications for specific forms, or for invoices. Reaching further into the process itself, 15% currently outsource significant business processes and workflows, and this is set to double to 30%, further reinforcing the desire to embrace radical solutions for process improvement. branch-offices, etc. Centralized through a large mailroom scanner or scanners Centralized using mulƟple producƟon scanners Outsourced capture of some incoming mail types Outsourced capture of all incoming mail None of these 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Business improvement consultants C-level execuƟves Finance managers IT operaƟons Finance operaƟonal staff OperaƟons/FaciliƟes/Post-room managers Records Management/Compliance Line of business managers Legal counsel Line of business operaƟonal/admin staff Strongly Resistant Resistant Neutral In Favour Strongly in Favour 0% 20% 40% 60% 80% 100% Outbound - mailing Outbound – print Internal managed print services Mailroom – physical distribuƟon Inbound digital mailroom Inbound capture – specific forms / processes Invoice processing, accounts payable (AP) Significant business processes and workflows Archive – back-file scanning/conversion Archive – day forward, electronic Archive – physical box store Payroll Yes Planned Not Currently Not Ever
  10. 10. ProcessRevolutioninBankingandInsurance 9© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Figure 8: Are any of the following document processes routinely outsourced in your organization? (N=122. Line length reflects N/A) Suppliers Single sourcing provides consistency, and helps establish and maintain operating standards based on business requirements. When an issue arises, there is one place to go for resolution as opposed to working with multiple suppliers who may not accept they might be at fault. Likewise, when there is a need to make changes and have a more agile environment, the single source supplier is in better position to respond to change quickly. Regarding how solutions are purchased, most of our respondents (65%) indicate they maintain a suppliers list of some type while 32% indicate use of a restricted set of suppliers. This stresses the need for vendors to apply for and be accepted as a preferred supplier with these customers. Additionally, when asked about using a single source supplier, 29% indicated they would or already do use a single source supplier. 30% of the respondents indicate use of a single source supplier is a possibility, if concerns about flexibility and supplier capabilities are addressed properly. Figure 9: Do you, or would you, consider one supplier to handle all of your inbound, outbound and process outsource requirements? (N=121) Line of business operaƟonal/admin staff Strongly Resistant Resistant Neutral In Favour Strongly in Favour 0% 20% 40% 60% 80% 100% Outbound - mailing Outbound – print Internal managed print services Mailroom – physical distribuƟon Inbound digital mailroom Inbound capture – specific forms / processes Invoice processing, accounts payable (AP) Significant business processes and workflows Archive – back-file scanning/conversion Archive – day forward, electronic Archive – physical box store Payroll Yes Planned Not Currently Not Ever 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Yes, already do Yes, that would make life simper Yes, if the deal was right Maybe - concerned about flexibility Maybe – not sure they could handle everything No, too many eggs in one basket No, they could hold us hostage on price 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
  11. 11. ProcessRevolutioninBankingandInsurance 10© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com The message seems clear that serious consideration is being given to outsourcing, provided the suppliers are proven or can prove themselves as viable and stable. This is not to say that the organizations we polled are completely comfortable with outsourcing as 36% indicate a preference for outsourced staff on their premises and in their facilities. Another 37% indicate they would never use an overseas location. Although possibly a logistics issue, this is more likely the result of data privacy and regulatory constraints as financial information is under strict regulatory control in most countries and regions. Reputable outsource service providers serving multiple geographies and sectors are in the best position to meet the requirements of international organizations in delivering consistent, standardized services across the enterprise. Figure 10: How do you feel about the following locations for your outsourced services? (N=116) Benefits In order to grow, businesses must focus on managing costs, and running the business effectively. New products and services are key to attracting new clients and retaining existing clients. By not having to spend time and resources on content and process management, organizations can turn their attention toward product and services development. Our respondents cite the ability to focus on their core business (62%) and cost savings (60%) as the top two potential benefits of outsourcing. Figure 11: Where do you see the biggest value to be gained from outsourcing? (N=117) Yes, that would make life simper Yes, if the deal was right Maybe - concerned about flexibility Maybe – not sure they could handle everything No, too many eggs in one basket No, they could hold us hostage on price 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% On-premise – their staff, your buildings Off site - local Off site – naƟonal Off site – regional (eg, within EU, N.America, etc) Off site – overseas Do now Would Consider Not Likely Not Ever 0% 10% 20% 30% 40% 50% 60% 70% Allowing us to focus on core business acƟviƟes Cost and efficiency savings BeƩer flexibility (to handle demands) Accessing best pracƟce from outsourcer's experience Improved conƟnuity and risk management Down-sizing of buildings MeeƟng stake-holder imposed targets 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Yes, already do Yes, that would make life simper Yes, if the deal was right Maybe - concerned about flexibility Maybe – not sure they could handle everything No, too many eggs in one basket No, they could hold us hostage on price 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% On-premise – their staff, your buildings Off site - local Off site – naƟonal Off site – regional (eg, within EU, N.America, etc) Off site – overseas Do now Would Consider Not Likely Not Ever 0% 10% 20% 30% 40% 50% 60% 70% Allowing us to focus on core business acƟviƟes Cost and efficiency savings BeƩer flexibility (to handle demands) Accessing best pracƟce from outsourcer's experience Improved conƟnuity and risk management Down-sizing of buildings MeeƟng stake-holder imposed targets
  12. 12. ProcessRevolutioninBankingandInsurance 11© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Conclusion and Recommendations Finance and insurance institutions are seeking ways to improve their operational efficiencies, reduce costs and errors, and at the same time accelerate their ability to process new accounts. It is no secret that these organizations must follow strict regulatory guidelines or face penalties. This is a global challenge for many as each country, or region, is likely to have specific regulatory guidelines that differ in some way from the others. As a result, regulatory compliance has become a primary driver for process change with a sharpened focus on the way records and documents/content are managed. This is a definite indication that concerns over the content itself is not as much of an issue as the way it is managed and processed. There is a need, and in many cases a requirement, to prove the integrity of the content and demonstrate proper management with the aid of audit logs and standardized practices. Paper is still recognized as a risk and impairment to process efficiency. The majority of organizations indicate that paper removal at some level, whether across the enterprise, or specifically targeted, is essential. It is also understood that the sooner content can be captured and brought into a process digitally, the less the risk of loss, and the greater the value due to accessibility. As an example, if remittance processing can be reduced to hours rather than days, cash flow increases dramatically. The discussion then focuses on the best point of capture, whether in a centralized “digital mailroom”, distributed throughout the branches and regions, or outsourced. When it comes to outsourcing, executives and business consultants see value in outsourcing various activities like capture. They see and understand the benefit of redirecting attention to new product development and customer services rather than expending internal resources to manage content and related processes. The reluctance comes from staff, line-of-business managers, and legal personnel who focus on security and regulatory compliance. This is where finding a supplier of sound reputation and proven capabilities is essential. Many organizations maintain suppliers lists of those who have been evaluated and approved. Trusted single source providers who become more a business partner, rather than simply a supplier, deliver greater value as they bring with them subject matter expertise as well as sector experience. Recommendations n Map your current processes to verify how things are done currently n Identify the content types related to the process, their source, and point of entry to the process n Document the requirements of your organization, focusing on the end result n Develop process improvement options to enhance your operations and support your compliance needs based on your documented requirements n Eliminate paper from your processes as early in the process as possible n Determine suitable best practices for content capture whether distributed, centralized, or outsourced n Include outsourcing as an option for process improvement with consideration to complete or partial outsourcing options e.g. outsourced staff on-premise with your equipment or completely outsourced off- site n Identify and discuss your requirements with outsource providers. (Do not tell them what you want, tell them what your objectives are and let them present options.) n Interview supplier references regarding not only the supplier, but pros and cons to outsourcing n Standardize and automate your processes whenever and wherever possible
  13. 13. ProcessRevolutioninBankingandInsurance 12© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Appendix 1 - Survey Demographics Survey Background The survey results quoted in this report are taken from a survey carried out between 13 December 2013 and 03 February 2014 with 138 responses from individual members of the AIIM community surveyed using a web-based tool. Invitations to take the survey were sent via email to a selection of AIIM’s 80,000 registered individuals. Organizational Size Organizations with less than 11 employees are excluded from all of the results in this report. On this basis, larger organizations (over 5,000 employees) represent 24%, with mid-sized organizations (500 to 5,000 employees) at 36%. Small-to-mid sized organizations (10 to 500 employees) are 31%. Geography The survey was international, with US and Canada making up 72% of respondents, and 17% from Europe. 11-100 emps, 12% 101-500 emps, 19% 501-1,000 emps, 11%1,001-5,000 emps, 25% 5,001-10,000 emps, 12% over 10,000 emps, 22% US, 58.8% Canada, 13.0% UK & Ireland, 6.9% Other Western Europe, 9.9% Eastern Europe, Russia, 0.8% Australia, New Zealand, 2.3% Middle East, Africa, S. Africa, 0.8% Asia, Far East, 5.3% Mexico, Central/South America, Caribbean, 2.3% Bank, 45.0% Financial Consultants/ Advisors, 9.2% Other, 6.9% 11-100 emps, 12% 101-500 emps, 19% 501-1,000 emps, 11%1,001-5,000 emps, 25% 5,001-10,000 emps, 12% over 10,000 emps, 22% US, 58.8% Canada, 13.0% UK & Ireland, 6.9% Other Western Europe, 9.9% Eastern Europe, Russia, 0.8% Australia, New Zealand, 2.3% Middle East, Africa, S. Africa, 0.8% Asia, Far East, 5.3% Mexico, Central/South America, Caribbean, 2.3% Financial Consultants/ Advisors, 9.2% Other, 6.9%
  14. 14. ProcessRevolutioninBankingandInsurance 13© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com Industry Sector Banks and credit unions represent 49% and insurance represents 24%. Job Roles 38% of respondents are from IT, 17% have a records management or information management role and 39% are Line-of-Business managers. Canada, 13.0% Bank, 45.0% Credit Union, 3.8% Loans or Mortgage Lender, 2.3% SecuriƟes and/or Investment Services, 8.4% Insurance, 24.4% Financial Consultants/ Advisors, 9.2% Other, 6.9% IT staff, 13% Head of IT, 7% IT Consultant or Project Manager, 18% Records/document management/ compliance staff, 10% Head of records/ informaƟon management/ compliance, 7% Line-of-business execuƟve, dept. head or process owner, 18% Business Consultant, 19% Financial Consultant, 1% President, CEO, Managing Director, 1% Other, 10% Canada, 13.0% UK & Ireland, 6.9% Bank, 45.0% Credit Union, 3.8% Loans or Mortgage Lender, 2.3% SecuriƟes and/or Investment Services, 8.4% Insurance, 24.4% Financial Consultants/ Advisors, 9.2% Other, 6.9% IT staff, 13% Head of IT, 7% IT Consultant or Project Manager, 18% Records/document management/ compliance staff, 10% Head of records/ informaƟon management/ compliance, 7% Line-of-business execuƟve, dept. head or process owner, 18% Business Consultant, 19% Financial Consultant, 1% President, CEO, Managing Director, 1% Other, 10%
  15. 15. ProcessRevolutioninBankingandInsurance 14© AIIM 2014 www.aiim.org / © Swiss Post Solutions AG 2014 www.swisspostsolutions.com UNDERWRITTEN BY Swiss Post Solutions Swiss Post Solutions, a division of Swiss Post, offers a comprehensive range of document and business process outsourcing services. With 6500 people working across Europe, North America and Asia and with access to an extensive partner network, we are able to support our clients across the globe. Private and Public sector organizations have chosen to outsource their physical and digital document processing needs to us, utilizing our extensive knowledge of people-based outsourcing and our capability to deliver document processing services on, near or off-shore. Our corporate information management system is a unified delivery platform that provides organizations with the ability to cost-effectively on-board and distribute documents throughout the organization. It provides our clients with the capability to: n Simultaneously improve productivity and reduce operational costs n Take an enterprise-wide approach to automating business processes n Enable improved decision making and customer satisfaction by accelerating business transactions n Reduce the risk of non-compliance and achieving legislative and regulatory requirements n Regardless of document type, physical or electronic medium, format, language or geographic location, Swiss Post Solutions offers an end-to-end solution from document creation to content management, production, distribution and business intelligence. AIIM (www.aiim.org) is the global community of information professionals. We provide the education, research and certification that information professionals need to manage and share information assets in an era of mobile, social, cloud and big data. Founded in 1943, AIIM builds on a strong heritage of research and member service. Today, AIIM is a global, non-profit organization that provides independent research, education and certification programs to information professionals. AIIM represents the entire information management community, with programs and content for practitioners, technology suppliers, integrators and consultants. © 2014 AIIM AIIM Europe 1100 Wayne Avenue, Suite 1100 The IT Centre, Lowesmoor Wharf Silver Spring, MD 20910 Worcester, WR1 2RR, UK 301.587.8202 +44 (0)1905 727600 www.aiim.org www.aiim.eu

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