4 Key Features of a Document Collection Platform for Banks

Document collection in the banking sector involves the systematic collection and organization of various documents and information from customers and clients. It is an essential procedure for ensuring smooth and safe transactions and also assists in identifying risks, confirming identities, and complying with legal and regulatory requirements. Document collection entails acquiring a variety of papers, including contracts, financial accounts, applications for loans, and identification proofs. To improve the customer experience and streamline banking processes, these documents must be accurate, efficient, and properly organized. Document conversion services support these efforts by converting paper documents into digital formats, enabling simple access, effective information storage, and simple information retrieval. This helps banking organizations optimize the document collection process, minimize manual work, improve data security, and increase operational effectiveness. Digital documents can be indexed, searched, and shared allows for quicker decision-making and empowers banks to provide swift and effective services.

Importance of Document Collection in Banking

Document collection allows banks to identify the applicant and confirm their ability to repay the loan, while guarding against fraud.

Individual applications and documents were previously verified for authenticity using manual review procedures, such as comparing bank statements for consistency in typefaces, layouts, and formats. However, fraudsters can produce and edit papers using sophisticated digital tools. Due to this, document fraud is virtually impossible to uncover. As a result, financial institutions run the danger of being victims of credit card or loan fraud. However, modern document collection software can recognize these dangers and help banks cut down on their risk exposure.

Data collection platforms for the banking industry come with various features that enable efficient and effective gathering of valuable information. Here are four key features commonly found in data collection platforms designed for the banking industry:

• System and organizational controls: When it comes to expanding IT capabilities, third-party Software-as-a-Service (SaaS) platforms have become the preferred solution for almost everyone, thanks to their agility and scalability. By opting for subscription-based (SaaS) services, organizations can minimize upfront investment and quickly benefit from a wealth of professional expertise. These services offer automated upgrades and maintenance, enabling organizations to concentrate on their core tasks rather than managing an in-house IT department. However, given the ongoing security and transparency challenges in the SaaS industry, banks are advised to choose secure data collection platforms that adhere to SOC 2 Type 2 compliance.

• 256-bit encryption: The U.S. government created the Advanced Encryption Standard (AES) encryption method to safeguard sensitive data. The use of 256-bit encryption in banking data collection platforms is vital to protect sensitive information, comply with regulations, foster trust, and mitigate the risks associated with data breaches. This highly secure encryption standard uses a complex algorithm to provide robust protection against unauthorized access and data breaches. Banking data often contains highly sensitive and confidential information, such as customer details, financial transactions, and account credentials, and 256-bit encryption protects this information, even if intercepted by malicious actors. It also allows banks to maintain compliance with industry standards, such as PCI DSS (Payment Card Industry Data Security Standard) and GDPR (General Data Protection Regulation) and avoid legal and reputational consequences. Implementing 256-bit encryption significantly reduces the risk of data breaches, acting as an important safeguard against potential threats. Utilizing this robust encryption measure also instills trust and confidence in customers.

• User provisioning: Advanced User Provisioning is a critical feature in banking data collection platforms that helps streamline and enhance the user management process. It involves the automated provisioning and management of user accounts, access rights, and privileges within the platform. Advanced User Provisioning is important in the context of banking data collection platforms for the following reasons:
  • Efficient user onboarding: With Advanced User Provisioning, banks can automate the process of creating and setting up user accounts. This streamlines user onboarding, making it faster, more efficient, and less prone to manual errors.
  • Centralized user management: Advanced User Provisioning allows administrators to easily view and manage user profiles, assign or revoke access privileges, and track user activities from a single interface. This centralized approach enhances security and simplifies the overall user management process.
  • Role-based access control: Advanced User Provisioning allows administrators to define user roles and assign specific access rights based on job functions or responsibilities. This ensures that users only have access to the data and functionalities necessary for their roles, reducing the risk of unauthorized access or data breaches.
  • Compliance and auditing: Advanced user provisioning helps enforce proper access controls and segregation of duties, which are essential for maintaining compliance. It also provides auditing capabilities, allowing administrators to track user activities, monitor access patterns, and generate reports for compliance purposes.
  • Scalability and flexibility: Advanced User Provisioning accommodates scalability by allowing administrators to efficiently manage a large number of user accounts, easily adjust access rights, and adapt to changing user requirements.

• Integration with existing software: Data collection platforms offer banks a secure and efficient way to gather necessary information, while also allowing configuration with existing systems. An ideal long-term and scalable solution would seamlessly integrate with popular cloud storage services like Dropbox, OneDrive, and Google Drive. Furthermore, it should accommodate custom integrations and effectively handle diverse suites of APIs from critical software services such as customer relationship management (CRM) and loan origination systems.

To ensure the benefits of data collection without incurring high costs or overwhelming IT workloads, organizations require the capability to create custom integrations and workflows without the need for extensive coding with every change. For banking institutions, opting for data collection platforms that support no-code web integration tools will provide cost-effective and capable solutions.

Utilizing data and document conversion services can help the banking sector improve data accessibility and accuracy, streamline data collection, and assure regulatory compliance. Such support can go a long way in driving operational effectiveness, customer satisfaction, and data-driven decision-making.