Document automation software shields banks from several pains that are associated with compliance. Even though compliance is for the good of the banks and the customers, it comes at a cost to both. Customers will spend more time waiting for a response from the institution while the bank will have to spend more money and work twice as much to tick all the compliance regulation boxes.
With the introduction of automation software, compliance becomes a lot easier and can be achieved in simple steps. Here are some of the compliance issues that banks can avoid with document automation software.
Processing data about customers can take up several hours and comes at a cost. However, banks are mandated to know their customers which means they need to capture detailed information about the customers and then process it. Banks spend millions of dollars trying to comply with this guideline and if they fail, there could be a corresponding fine.
With document automation, however, this is a process that is digitized and will be done much faster. With online forms, customer information can be captured and processed in a few minutes. Onboarding that would be done in over a month can be complete in a day.
Data integrity should be a no brainer for banks. The cost of wrong data entered into key documents is scary. For example, banks need to have accurate data when producing facility letters for loans. This requires a meticulous review of the customer’s data. With document automation, all the details are handled by the software and the user has clear information. When this technology is employed by banks, they can guarantee the accuracy of the data they provide.
Banks need to be sure they are keeping client data safe but at the same time, they need to limit the inconvenience the customer is burdened with. Originally, a customer would have to carry a bunch of documents every time they want to transact with the bank. Now, with document automation, data is stored safely in the system and security verification can be carried out using the same documents that were provided when onboarding the client. Banks can guarantee security with limited inconvenience to the customer.
Banks with branches in several locations may have to ensure their documents comply with the jurisdiction that they are conducting business. This can easily be forgotten as documents are produced and that could lead to non-compliance penalties. Automation makes it possible to have the right clauses included in documents based on the jurisdiction.
Banks have to ensure that all documents are easily read and understood. To do this, they have to stick to certain formatting guidelines. This may be hard to do if users can choose whatever format they would like to have for the documents they produce. Document automation ensures that all documents maintain a professional look and provide a clear understanding of the content of a document. For example, the final account balance should be easy to distinguish from other sums within a statement so it should always be bold. Automation will make certain that it always is.
Banks need to carry out several checks to determine the level of risk involved in lending to an individual or organization. Usually, this would take up hours going through documents to determine an applicant’s creditworthiness. Document automation however makes this a simple task because data is made available within minutes. A bank can generate a credit report that will prove whether there is any risk in lending to a customer.
Compliance issues usually present a challenge of time and money needed to guarantee that the bank is complying with regulatory guidelines as well as internal document guidelines. Most of the time there is the risk that humans can make mistakes that end up costing the institution lots of money. With Windward's document automation solutions, guidelines are set for all compliance documents and it will ensure the documents always come out the way they are supposed to. The documents are also easier to access for authorized individuals and yet more secure from fraudsters and other unauthorized persons.