The problem with this approach is that human agents are incredibly expensive. They are also not that effective at increasing document processing speed. A (somewhat) better way to boost document handling capacity was to hire a team of developers, either in-house or externally, to build a custom document collection system or invest in an off-the-shelf product. But this was not an ideal solution, either. Developers do not exactly come cheap and building an in-house solution can take a long time. Prior to the introduction of cloud-based automation solutions, ready-to-use software was also not always up to the task. 4. Frustrated Customers Are Dropping the Onboarding Process To this day, an overwhelming number of lenders still rely on in-person meetings, email, and, perhaps worst of all, post to collect financial documents from clients. All too often, business owners looking to apply for funding or simply open a new account are told they need to book an appointment and spend half a day traveling, waiting in lines, and filling out paperwork. The long-handling times and document-heavy workflows with multiple touchpoints, many of which unnecessary, frustrate clients. Some end up abandoning the process altogether and resort to more flexible providers such as alternative lending institutions or tech-forward incumbents. 5. Compliance Is Eating Up a Big Chunk of the Budget The commercial lending space is highly regulated. Keeping up with the ever-changing regulations – from Know Your Customer (KYC) to Anti-Money Laundering (AML) requirements and beyond – and staying compliant at all times eats up a lot of time, money, and human capital. Compliance is also one of the reasons many commercial lenders hesitate to adopt new electronic solutions. They are concerned, and rightly so, about the regulatory implications. The Benefits of Automated Document Collection In its latest Global Intelligent Automation Survey, Deloitte reported that 78% of the surveyed executives – including CFOs and finance directors – said that their organizations were currently using some form of Robotic Process Automation (RPA). A further 16% planned to do so in the next three years. And no wonder. Here are just some of the benefits of automating document collection in the commercial lending sector: 1. Drastically Reduced Processing Times Automation enables lending institutions to collect financial evidence and other supporting documents more quickly than ever before. Where it once took teams days, weeks, and sometimes months to collect, review, and process client documentation, automation technologies can accelerate the application process to just a few minutes. Automation also helps speed up time to close from what can be months to six to 13 weeks. In some cases, deals can close in under four weeks. This not only enables lenders to process more applications in less time but also frees employees up to focus on more impactful activities than pushing paper, such as revenue generation and customer service. 2. Streamlined Workflows and Optimal Use of Resources Automated document collection effectively: • Eliminates paper piles • Clears inbox clutter • Minimizes manual data entry • Reduces the reliance on spreadsheets • Improves file structure and organization Lending teams no longer must sift through a neverending drip feed of emails with different attachments just to find a single form or ask for an update. Wasting Continued from page 23 Automated document collection goes beyond converting analog into digital data. It completely transforms the document handling process and reduces the need for human intervention to the bare minimum. www.coloradobankers.org 24
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