For GFA Federal Credit Union, converting to paperless processes hadto do with a lot more than the environment.

Since incorporating document management solutions into itsretail banking operations, the $353.6 million credit union inGardner, Mass., said it has saved on operational costs, seenincreases in security and accountability, and improved the qualityof its member service.

GFA's relationship with its document management solutionprovider, the Avon, Conn.-based technology services vendor COCC, began back in 1987, COCC said. Prior to implementing thecompany's document management solutions, credit union employees notonly handled excessive amounts paper, they wasted excessive amountsof time. 

Linda Carmichael, vice president of operations at GFA, explainedthat in the past, the new account opening process, for example,required employees to leave their desks to retrieve documents fromfiling cabinets. The cabinets also took up ample physical space inbranches.

Now, with COCC's document imaging technology, all forms anddocuments used for the credit union's retail banking operations areelectronic. According to Carmichael, the technology has alsoallowed the credit union to enable electronic signatures, as wellas track all form and document-related activities within thesystem, which has helped lead to extra smooth reporting andauditing processes.

Carmichael named two key reasons for choosing COCC's documentmanagement solutions. First, the technology is integrated to thecredit union's existing core banking system. Second, the vendor hasthe ability to provide technical support for GFA, which has a smallIT department of its own.

“With GFA FCU, we focused on providing an opportunity to gainefficiencies and cut costs without adding staff members,” saidMatthew L'Heureaux, vice president of product development at COCC.“The processes they had in place were serving them fine, but therewas a lot of room for improvement.”

One unique feature of the new technology is its smart folders,which allow workers to subscribe to the types of documents theyregularly use, Carmichael said. For example, auditors can choose toreceive notifications for documents that enter the system duringthe new account opening process, assign statuses to documents, suchas received or approved, and attach electronic sticky notes todocuments.

GFA's paperless initiative successes are in part due to thephased approach it has taken, according to the credit union. Itbegan by turning its new account opening process into a paperlessone because it's a business area that involves many employees,Carmichael said. Then, taking one step at a time, GFA moved on toeliminating paper in other areas.

L'Heureaux said it's wise for credit unions to begin byconverting a process that's especially encumbered with paper; then,the employees who work in that particular area, can serve aspaperless process advocates throughout the organization.

Another key to the credit union's paperless initiative wasencouraging employee involvement at every stage, Carmichael andL'Heureaux agreed. The initiative kicked off with a staff meetingwhere COCC demonstrated its eSignature and document imagingtechnology, and the credit union later formed an eDocs team and GFAInnovations Committee to establish solid initiative leadership.Additionally, managers send employees a monthly letter detailingthe credit union's recent accomplishments.

“During COCC's demonstration, you could feel the excitement inthe room,” Carmichael said. “We knew that this was going to take usto another level.”

GFA also brought in college students to help identify smallbusiness process changes that would contribute to member servicevalue. For example, during new account openings at the branches,employees swivel their computer monitors to face members as arule.

Increased security is another benefit of COCC's documentmanagement solutions. Since electronic documents can't float aroundthe office as printed documents can, members trust that theirinformation is more secure, Carmichael said. L'Heureaux alsopointed out that electronic documents can't be processed until allrequired signatures have been completed, making it impossible tomiss a signature.

With printed documents gone, the time employees save isinvaluable, Carmichael and L'Heureaux agreed.

“I'm amazed by the concept of searching for a documentelectronically versus the old fashioned way of going to the filingcabinet,” L'Heureaux said. “When you're combing through documents,you can't answer phone calls or help your colleagues. And when youeliminate that physical piece, documents are in the system as soonas they're signed.”

Implementing paperless technology demonstrates a modern approachto business that can help credit unions appeal to youngerconsumers, L'Heureaux added.

“If you think about the younger demographic, being ahead withtechnology improves the image of the credit union,” L'Heureauxsaid. “GenY doesn't want to spend an entire lunch hour opening a newaccount.”

Now, approximately one year into the initiative's launch,Carmichael said it's changed the way GFA conducts day to daybusiness. The credit union also plans to expand its paperlessprocesses into other business areas, such as its loan originationprocess, in the human resources department and on the tellerline. 

“It's not a project, it's a new way of doing business,”Carmichael said. “It's a culture change.”