Going paperless is the ultimate time saver. It allows MSRs to easily access documents and extends the efficiency to members. Remote deposit capture is a convenience that was quickly embraced in the paperless world, saving time and money by eliminating trips to a branch or ATM to deposit checks. When it comes to modern loan processing, the convenience of e-signatures is what your members will come to expect from your credit union. As CU executives know, implementing e-signatures requires investment of both time and money. However, the Return on Investment (ROI) from paperless is very tangible. Here are 4 areas where the ROI of paperless lending is quickly realized:
1. Speed of processing. Processing speed has, by far, the biggest impact on ROI for e-signatures. Processing loan documents can be such a time-consuming task, that even the smallest improvement in efficiency can make a noticeable impact. A recent article discussed how e-Signatures can result in a 70 to 80 percent improvement in operational efficiencies.
2. Error reduction. Missing signatures can cause not only delays but requires additional time and trips for your members. Eliminating the additional time needed for a member to come back to the branch to fill in a missed signature will speed up your process. It will also lead to an improved member experience.
3. Reduction in printing costs. Document management for credit unions can be a costly endeavor. Costs associated with printing, processing, and shipping loan documents can skyrocket quickly. With e-Signature, you can eliminate all the physical paperwork and the handling that goes with it. You're also getting a bigger ROI because your staff isn't wasting time collating and organizing stacks of documents and getting hung up on printer-related issues. You save in the actual paper and ink costs, as well as in the time it takes to process that paper. With printing expenses taking 1-3% of annual revenue, that's a savings with a big impact.
4. Speed up the closing process. Increased speed of processing, error reduction, and less paperwork to shuffle all culminate into a far quicker closing process. The quicker and less painful a CU can make the loan process, the more satisfied their members will be. Those members will be more likely to come back in the future for other loan or banking needs, and they're more likely to tell their friends. Happier members and more new members will boost your business and your bottom line.