Digital imaging of items and documents improves member satisfaction

In the words of quality guru W. Edwards Deming, "Unhappy customers don't complain, they switch." In the new economy, even happy customers are switching mostly because they want faster answers. Speed denotes quality, and quick service equals customer satisfaction in the new digital marketplace. Conventional archiving and digital item imaging As competition for financial customers increases, and speed of response becomes more crucial, credit unions must position their businesses for the future. If current trends persist, document and item processing through microfilming will migrate towards low-cost, digital desktop scanning and imaging systems. Archiving transaction items like checks, deposit/withdrawal slips, and payment coupons is a necessary daily task. But once the task is completed, the time spent searching through rolls of microfilm for a particular check or deposit slip means lost time and money. These systems do a good job of imaging and storing, but leave it to the operator to hand search through endless streams of pictures. The effectiveness of conventional archiving systems is measured by how fast they scan or film documents. But capture time is less critical than retrieval time. With conventional systems, retrieval time is measured in hours or days, not in seconds. Also, conventional archiving is picture-based and locked in an order that can't be changed, making retrieval very tedious. Contrast that process with timesaving retrieval searches by easily-identifiable parameters like date of capture, bank codes, plus account, item amount, check, and ABA numbers. Retrieval is instantaneous when numbers, dates, and digits are used instead of pictures. How digital item imaging works Digital imaging scanners are flexible, easy to use, have a more compact footprint, and are significantly less expensive than traditional microfilm processing. It only takes seconds to look up a check in question. The reduced time in recalling checks enables scanner-equipped credit unions to provide value-added services to members such as providing information in one phone call. Credit unions interested in comparing the advantages of digital item imaging versus microfilming should consider the number of checks they process each week, plus the time spent on check research, and the total time they will save by using a digital item scanner. * Scan more than one check at a time: Checks can be scanned in batches of up to 100. The same number can be assigned to the batch in the scanner as is used with the encoder, giving tellers another category to search quickly. * Scan more than checks: In addition to checks, deposit/withdrawal tickets, general ledger tickets, and teller receipts and tickets can be scanned. Most digital item scanners have built-in tape backups that, along with an external CD writer, store thousands of work image items. Combining scanning, indexing, storing, retrieval, and distribution functions in a desktop system provides a cost-effective alternative to conventional archiving. Because the key information within items is digitally imaged, a copy is just a mouse click away. The instant a work item is scanned, it is immediately indexed and appears on-screen. Users quickly catch errors caused by misfeeds, fogging, skewing, or overlapping. Since indexing is based on easily identifiable fields, and not picture-based images, users have unequalled flexibility in accessing items fast. * Digital storage benefits: Reduced storage space is another benefit of digital item imaging. Rather than storing numerous rolls of film, the images are captured on convenient CD's. Also, the scanner footprint is significantly smaller than a microfilm system. It sits in the teller area and occupies less space than a verification and receipt printer. * Sharing scanned images with members: The need for instant access to personal data will become more important as members increase their use of the Internet. Digital items can be shared across internal networks, printed on the system's desktop printer, and faxed or emailed to members. Think of the savings on courier costs alone. * Image processing and customer relationship management: A recent GartnerGroup research study mentioned that document imaging projects are increasing in importance as financial institutions recognize the customer relationship management benefits delivered by item imaging. The study cited the ability to archive old checks, claims, orders, etc. and to provide that information to customers on demand and how faster retrieval differentiates institutions and the level of customer service that they can provide. Measuring the value of digital item processing to your CU Like all complex decisions this one is more difficult in the short-term and transparent in the long-term. The decision is simple for a credit union contemplating the purchase of an upgraded microfilm system. Review all your options. The smart choice is to purchase an image processing system that positions your business in the digital economy where instant information retrieval, connectivity, and speed of customer service are competitive necessities. How long can you wait before you buy an image-processing system? The answer to that question depends upon several issues three of which are: how long your members are willing to wait for answers to their questions, how productive your employees need to be for your business to remain competitive, and can you afford not to have your data image-enabled. Clearly, microfilm-based item and document recording, storage, and retrieval are slow compared with mouse clicking through a digital imaging system. Time is money and digital imaging will cut transaction time by two thirds or more. Off-the-shelf digital systems, including software; countertop item scanner; PC with monitor; keyboard and mouse; CD writer; tape backup; plus fax and modem software will cost, depending upon accessories, between $15,000 and $20,000 per site. Amortize this cost over many years of processing up to 10,000 documents per day, and a useful life of 20 million total documents, and you have a very good financial deal, plus a system that delivers added value to your members. What is a good way to investigate digital item imaging? Call a local vendor and ask for a no-cost, no-obligation demonstration. Also ask for a list of clients who are willing to be called for a reference. You may even find a credit union that is close by and they'll let you stop by for a look. Right now you need the knowledge that comes from seeing for yourself, and in that knowledge lies the power of increased competitive advantage.