1) The document discusses speed bumps that companies face in adopting advanced technology for document processing, including regulatory headaches, staying compliant, cost control, and meeting service level agreements. It also discusses technology speed bumps such as handling document volume and velocity, validation challenges, and issues with cloud vs. on-premise solutions. 2) It notes that while the technology for automated document processing has matured, many companies have been slow to adopt it due to rigid pricing models from some vendors and challenges upgrading legacy software. 3) However, it suggests the industry is at a critical juncture and companies that take a customer-centric approach with flexible, upgradeable technology will be best positioned to automate document processing and

1. YOU SAY YOU WANT AN
EVOLUTION
ELIMINATING THE HUMAN
EQUATION IN DATA
EXTRACTION

2. IT’S TIME TO MOVE THE ELUSIVE BUTTERFLY
DOWN THE ROAD
0101100101101111011101010010000001010011011000010111100100100
0000101100101101111011101010010000001010111011000010110111001
1101000010000001100001011011100010000001000101011101100110111
1011011000111010101110100011010010110111101101110000011010000
1010010101000110100001100101001000000111010001100101011000110
1101000011011100110111101101100011011110110011101111001001000
0001110100011011110010000001110011011000110110000101101110001
0110000100000011010010110010001100101011011100111010001101001
2
Seeing the speed bumps .......................... 3
The technology is waiting ...................... 5
Putting the client in the driver’s seat ..... 6
Overcoming the obstacles ....................... 7
The technology to scan, identify and extract
information from documents is old news these
days. Advanced forms solutions have been
around and improving since the early 2000s.
Now it’s time for the vendors to update their way
of doing business. Companies taking a custom-
er-centric approach are destined to become the
standard. The evolution has begun.
WHAT’S INSIDE

3. STUCK IN
SECOND
GEAROn the road of technical evolution, many financial ser-
vices companies are not maximizing the options avail-
able to them. The solutions to analyze and process the
ever-increasing amount of loan documents has matured
to the point where firms, if they choose to invest, are
very close to reaching the ultimate goal: straight-through
processing without human intervention.
Our research has found that although many companies have taken the first step
or two in electronic processing, they have been slow to adopt the advanced tech-
nology widely available to accelerate their business. Our research has also found
that we are at a critical juncture with increasing regulations (and the paperwork
that comes with it), new service level agreements (SLAs) and the rising risks of
costly litigation that increase the need for improved processes.
The vexing hurdles that have slowed growth come in two flavors.
BUSINESS SPEED BUMPS
Regulatory headaches: More than ever, rules and directives
continue to rain down both externally and internally. Completing a
transaction can be easily delayed or derailed by an overlooked de-
tail or an entry left blank. How and when will the 2010 Dodd-Frank
legislation for mortgage reform fully play out? What’s the best way
to deal with the Consumer Financial Protection Bureau (authorized
by Dodd-Frank), whose mission is to make markets work better for
consumers. While these rules and regulations may help Americans
cope, it also creates moving targets for the mortgage loan team
tasked with putting the processes in place.
Staying compliant: Trying to follow the rules pushes the financial
industry to keep ahead, or at least keep abreast, with ever-changing
governance. Risk management continues to be a focus amid an
abundance of uncertainty. Since the financial crisis of 2007-2008,
companies have become, understandably, more risk averse, but as
time moves on and memories fade, we are finding that companies
would like to become more aggressive but only if they can do so
with unnecessary risk.
1 3 5
2 4 R

4. Cost control: In our current climate of historically
low interest rates and stagnant growth, financial com-
panies continue to look elsewhere to improve their
bottom line. If you can’t grow revenue, then reduce
cost. As is the case with all industries, internal dis-
cussions revolve around reorganization, consolidation
of mid- and back-office functions and more, while at
the same time upgrading the customer experience.
Unfortunately, the uncertain economy has not pro-
vided the growth that executives and Wall Street are
looking for and the ongoing pursuit to increase the
bottom line continues to focus on cost reduction.
Service level agreements: How do firms make
sure they have the right hardware and software to
make deadlines and help keep the promises they’ve
made to clients? Loan companies make both internal
and external commitments on how they will oper-
ate. Customers bank on getting feedback in a timely
manner. One new wrinkle that troubles all companies
and should concern financial organizations is how
customers rate their service. Historically, a company’s
service was compared with other companies within
the industry. Today, companies are being compared
with outside firms such as Amazon, Apple and Star-
bucks. The service bar just got higher.
TECHNOLOGY SPEED BUMPS
Volume and velocity: AA solution that is good for
the volume isn’t necessarily good for the velocity. Be-
cause workloads ebb and flow, systems purchased
to handle volume might not fare too well when added
speed is required. And vice versa. When a crush of
documents lands at 1 p.m. on a Wednesday af-
ternoon and needs to be processed by Thursday
morning, will the extra velocity be available for you?
Companies need a solution that can handle both
situations. Also, a vendor’s offering must fit the im-
mediate budget but include some wiggle room that
won’t break the bank when addressing the inevitable
fluctuations. This is not a simple decision. Too often
one shoe doesn’t fit all, and finding the right fit can
be time-consuming and expensive. The best guess
is just that, a guess. It’s no wonder such a challenge
has added to the delays in adopting advanced tech-
nology.
Validation: This isn’t a simple process. When a new
mortgage loan is submitted for approval, it needs to
be analyzed to address compliance, legality, accura-
cy and completeness ... and this process needs to be
done quickly. But there is a big valley to be crossed.
Software vendors and technology experts talk about
straight-through processing and customers would
like to achieve this, but organizations are wary. The
technology to get there (or at least much closer) ex-
ists, but many vendors oversell their product, and
customers are gun-shy as they do not believe in the
elusive Golden Unicorn. Does it really exist? Can
technology keep up with the increasing number of
document types required for a loan without incurring
long and cumbersome professional services engage-
ments? Will the data-extraction tools provide for in-
creased accuracy and reduce the need for staffing to
validate the data? Can we ensure that a document is
complete before we submit it to the more expensive
underwriting resource? All this needs to be accom-
plished while reducing costs.

5. In cloud, on-premise and in every department:
Companies big and small are deciding today if they
are going to deploy their technology in their own
data centers or use a cloud-based offering to man-
age their servers and data. Most technology can
deal with either option, but there is a third issue that
needs to come into play -- and that is the ability of an
install to address multiple solutions with one instance
of software. Advanced forms solutions play well in
many different departments. Maybe the initial chal-
lenge is in the loan processing department but com-
panies should have a plan in place to deploy it in HR,
accounting and other departments. Deciding on an
on-premise versus a cloud solution will depend on an
organization’s current plans. Getting a solution that
can solve multiple deployments has been a sticking
point for a number of potential investors.
Thin client: This is an overwhelmingly favorite with
customers today. The companies we investigated
said they would only accept solutions that are 100%
thin client. Even though technologies exist that al-
low thick client applications to be run in a thin client
window, the best solution remains a true thin client
offering.
GEARING UP
TO THIRDThe sticky throttle: The technology to address
these problems has been available for many years.
Our research has found that many customers have
run into the above roadblocks and have decided to
sit on the sidelines rather than adopt new automa-
tion. The key reason hasn’t been the technology,
which is very mature, but finding a company with the
right technology and a business model that makes
sense.
Many vendors have the “always and never” ap-
proach. “We always do it this way,” the saying goes.
“We never price it that way.” This rigidity becomes a
nightmare, especially when the number of pages and
documents required to process is a moving target.
Worse yet, some companies insist on adding a fee for
each user or seat. Because many of these solutions
still have legacy anchors (thick client requirements),
this adds an additional burden to the IT team when
grappling with deployment and desktop manage-
ment.
Such strict pricing policies were bad enough for
major players that had the budget and resources to
invest heavily in their system, but as advance tech-
nology seeps into the midsize and small markets, it is
crucial that the model fits the customer.
Solutions from vendors with legacy software pose
challenges. Can your software be upgraded in min-
utes or is it a major IT project? Customer’s expecta-
tions are changing. Industry leaders such as Sales-
force.com have set a high bar for upgrades by doing
them in 15 minutes or less. If you are not on the latest
version, are you using the most current underlying
technology when it comes to optical character recog-
nition (OCR) or intelligent character recognition (ICR)
engines? The improvements you are looking for may
be just an upgrade away but at what cost? The ques-
tion that needs to be asked is can you solve tomor-
row’s headaches with yesterday’s technology?
Many mortgage companies already shackled by their
current scan, barcode and data-export processes are
hindered by the additional unknown cost associated
with forms identification and data extraction. This
basic system may be working today, but when finan-
cial firms look to expand, reduce cost or both, slow
and steady can be woefully inadequate. Having a
nimble supplier is critical.
5
1 3 5
2 4 R

6. GETTING TO
FOURTHThere is a solution: A new breed of vendors has
adopted a customer-centric approach. These com-
panies are not only providing revolutionary technol-
ogy but also a business model that makes sense for
today’s changing climate. Instead of forcing lenders
to adopt a model that doesn’t address their busi-
ness and solution needs, vendors such as Ephesoft
have taken the approach of creating a model based
on what the customer wants. This has removed
many major obstacles hampering the adoption of the
advanced forms solutions. This model also resonates
with companies outside the lending world.
A key element of such a paradigm is having the right
pricing that fits into today’s budget and also address-
es future needs. As adoption of advanced technol-
ogy expands beyond the top 20 mortgage lenders,
midsize and small companies want and need the
same level of automation. Pricing should be able to
address large, medium-sized and small organizations
and have the ability to scale as mortgage firms look
to expand organically or via acquisitions.
Another crucial element is providing innovative soft-
ware that can be quickly deployed and is completely
thin client.
During our interviews, we found a number of com-
panies that ran into these exact obstacles. They had
explored various products and walked away scratch-
ing their heads, as one was too hot (expensive) and
one was too cold (complex). “Several years ago, we
invested in a product that was priced around page
counts,” shared Jane Christie, COO of eDocument
Solutions, a company that provides loan processing
for multiple lenders. “But when we explored their ad-
6
1 3 5
2 4 R
0
1
2
3
4
5
6
7
8
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
FY2011 FY2012 FY2013 FY2014
Leading Mortgage Loan Processing Provider
Pages processed per year FTEs required for processing
Pagesprocessedperyear
FTEsrequiredforprocessing

7. vanced forms offerings, they required additional click
charges for forms identification, and the professional
services recommendation to set the system up was
staggering.”
EPHESOFT, PAVING THE WAY
No holding back: What keeps companies from
jumping into automation or upgrading their current
scanning system is not an issue of technology. The
stumbling block has been the evolution of vendors.
And this is where Ephesoft comes in. Its business
model is designed from the outside in. The product
is based on advances made in search and extrac-
tion technology, but they also have built a platform,
deployment model and pricing guide designed for
today’s users. “We are a market disrupter. We are
totally different,” says David Talarico, the company’s
senior vice president of sales and marketing, Ameri-
cas. “We’re flexible, we’re modern, we’re responsive.
This is what’s next. This platform is our vision in a
mature market.”
From scanned forms to faxes to electronic docu-
ments such as PDFs, Ephesoft dives in and delivers
the key information needed to propel your business
forward. This system adds value to your documents
by automatically capturing content vital to the bottom
line. When your teams are trying to cope with regula-
tory headaches, compliance concerns and validation
issues, such speed and accuracy are essential. Hav-
ing such an engine is also critical when it comes to
delivering on your service level agreements.
KEY OBSTACLES CONQUERED
Volume versus velocity: Mortgage companies
need to look at the number of loans they are pro-
cessing today and do some quick math. What if the
number of loans doubles? What if the number of
documents (and pages) per loan doubles? Are you
prepared for that? Ephesoft is ready.
“We structure our deals, including product and pric-
ing, based on customer needs,” says CEO Don Field
CEO. “We address both volume and velocity and take
into account our clients’ concerns regarding short-
term and long-term goals. Customers do not like
surprises so we provide them the solution that gives
them the flexibility they are looking for.”
Thin client: Thick client solutions are quickly be-
coming dinosaurs. The cost to manage, maintain
and upgrade desktop devices can be prohibitive,
especially when the IT department is being asked to
reduce costs. Ephesoft is 100% thin client and sup-
ports both Windows and Linux servers, which allows
for more flexibility in deployment and, more impor-
tantly, upgrades and maintenance. It also meshes
with popular browsers such as Chrome, Firefox,
Internet Explorer and Safari. “We are Switzerland,”
says Field. “We work with everyone.”
If a customer prefers not to have an on-premise solu-
tion, Ephesoft is cloud-friendly and can be deployed
on a private or public clouds such as Amazon or
Microsoft Azure.
An early adopter of the Ephesoft offering is Mountain
West Financial. On its road to more advanced auto-
mation, the company was running across a number
of the aforementioned obstacles. Then one day that
changed. The lender’s technology partner, Konica Mi-
nolta, brought in Ephesoft. Brian Tucker, an IT man-
ager at Mountain West, had this to say: “It’s easy to
configure, very straightforward and the architecture is
really cool. We also liked the fact that it has an open
source component as this allowed us to customize
the software.”
Easy to deploy: Many projects are passed over as
the time and cost seem daunting and prevent com-
panies from taking the next step. “Ephesoft software
WE STRUCTURE OUR DEALS, INCLUDING PRODUCT
AND PRICING, BASED ON CUSTOMER NEEDS”
-DON FIELD,
EPHESOFT CEO
“
7

8. was easy to configure,” said Susan Hartsock, busi-
ness analyst at Mountain West. “We had a deadline
to prove to management that the product worked.
One weekend we set up 57 different form types on
my laptop. On Monday, we started running docu-
ments through the system, and it immediately clas-
sified 55. This was better than what we were able
to achieve with the other products we tested and it
took a lot less effort. The user interface was so much
cleaner compared with what staffers were accus-
tomed to; the users enthusiastically embraced it.”
Fast and accurate: Having the ability to utilize the
latest OCR, ICR and artificial intelligence is critical.
Vendors typically embed the engine into their soft-
ware application, which limits the engine used to
what is shipped by the vendor. Ephesoft decided on
a different approach; it integrated its product into the
third-party engines that are the backbone of all of
the major forms-processing solutions via a plug-in.
“When new versions of the these engines are avail-
able, they immediately work with our software, which
provides our customers with the latest and most
accurate OCR and ICR engines on the market,” Field
explained. “This gives our customers the ability to
take advantage of the latest technology rather than
waiting for an upgrade from the solution vendor.”
Priced for any solution: Ephesoft’s basic bundle
package features all the available advanced-recogni-
tion technologies you’ll need to break into document
automation or to upgrade from a legacy system.
There are no upgrades or hidden costs involved.
Price is based per core server and can handle multi-
core servers. There are no per page click charges or
costs for scan, validation or administration seats or
other options to select since it’s all inclusive. The
proposals are much smaller and easier to understand
than the competitors’.
Scan documents your way: If you already have a
system in place to turn paper into pixels, that works
for Ephesoft too. “Over 80% of the documents we
process are scanned from another source,” says CEO
Field. “We offer very robust tools for document scan-
ning, but we are comfortable with any document-
ingestion mechanism.”
Long live the evolution: As mentioned, the tech-
nology to scan, identify and extract information from
documents is very mature, having been available and
evolving since the early 2000s. Now it’s time for the
vendors to evolve. Companies such as Ephesoft are
taking a customer-centric approach to their offerings,
which are destined become the standard that other
companies will need to adopt to survive. The evolu-
tion in the forms-processing market has started and
Ephesoft is in the driver’s seat.
EPHESOFT SOFTWARE WAS EASY TO CONFIGURE.”
-SUSAN HARTSOCK,
BUSINESS ANALYST AT MOUNTAIN WEST.
“
010110010110111101110101001000000101001101100001011110010010000
010000100000011000010110111000100000010001010111011001101111011
010101000110100001100101001000000111010001100101011000110110100
010001101111001000000111001101100011011000010110111000101100001
011110010010000001100001011011100110010000100000011001010111100
111001100110011011110111001001101101011000010111010001101001011
011001000110111101100011011101010110110101100101011011100111010
010000100000011011100110010101110111011100110010000001110100011
8

9. ABOUT THIS WHITE PAPER
00010110010110111101110101001000000101011101100001011011100111
10110001110101011101000110100101101111011011100000110100001010
00011011100110111101101100011011110110011101111001001000000111
10000001101001011001000110010101101110011101000110100101100110
00011101000111001001100001011000110111010000100000011010010110
10111101101110001000000110011001110010011011110110110100100000
00011100110010000001101001011100110010000001101111011011000110
10100001100101011100110110010100100000011001000110000101111001
R & D MARKETING
Doug Rudolph is a 25-year veteran of the document-imaging market. He has worked
for Kofax Image Products, Fujitsu, Wang Laboratories and PaperClip Imaging Software
and has held positions in sales, business development and marketing. He has authored a
number of special reports and articles that address productivity gains by using document
imaging, advanced forms and document-management solutions.
Glenn Doggrell is an award-winning editor and writer with more than 35 years in jour-
nalism, including 22 years with the Los Angeles Times.
Carli Krueger, a news designer, copy editor and graphic artist. In addition to freelance
design she has worked for the Orange County Register, the Los Angeles Register and the
Riverside Press-Enterprise.
EPHESOFT INC.
This white paper is sponsored by Ephesoft Inc. The Laguna Hills, Calif., company delivers
exclusive Smart Capture™ technology on premise or in a SaaS model. With a focus on
efficiency and reliability, Ephesoft has crafted the next generation of intelligent document
capture in a simple and cost-effective application. The company’s use of open standards
and web-based software offers extreme flexibility and accessibility for a range of custom-
ers. Superior classification technology lets organizations automate and streamline mail-
room processing and other document-based processes. Ephesoft software captures and
extracts data from unstructured documents with ease, adding another layer of efficiency
and cost-savings to your operation.
The company is undergoing rapid growth in both the United States and abroad. Ephesoft
is sold exclusively through a worldwide network of authorized resellers. To learn more,
please visit www.ephesoft.com. To learn more about their product and offering, please
contact sales@ephesoft.com
9

10. “WITH THE BURGEONING AMOUNT
OF DOCUMENTS THAT NEED TO
BE PROCESSED, WE CANNOT BE
SITTING ON A PLATFORM THAT IS
OUT OF DATE.”
-JANE CHRISTIE,
COO OF eDOCUMENT SOLUTIONS
“
1980
1995
TODAY
TOMORROW?