Why is paperless finance important?

Technology is everywhere today. The deployment of the latest technology not only amplifies business opportunities but also enhances the customer experience across all verticals. All business entities understand the importance of being technically competitive no matter which industry line they belong to. The financial services industry is no different. The nature and scope of the financial services industry is enormous. The industry has gone paperless completely in the recent past through technology. Yes, it is extremely crucial to be a paperless financial service provider. Why?

Going paperless is no more a choice, but a recipe for life. It became an integral part of personal finance. Today, the customers of financial services are well-informed, demanding and intolerant as well. They expect to be served as quickly as possible. For years, it was the big financial institutions and banks that set rules and regulations and consumers obeyed them. This is not the case with paperless finance, which has been a new buzzword. Apart from the massive amount of expediency consumers could relish, here are prime reasons why paperless finance is crucial:

The way your banker serves you should be paperless. Your banker should be accessible 24/7 through smartphones. Is it not possible? Yes, it is! Financial technology companies, also called Fintech companies, have continuously been developing and advancing the much-needed technology for financial services companies, which encompass insurance companies, banking institutions, credit card companies, housing loan companies and non-housing loan companies. The entire financial services industry can be hassle-free for consumers through a paperless system. Fintech companies are also developing interactive technologies for banks. This way a customer-friendly banking environment can be established.

 This is absolutely true! Most people today use smartphones for the business of banking. Gone are the days in which people used to approach bankers directly to get the required details related to financial products be it a housing loan, a credit card, a personal loan, an insurance plan, a vehicle loan or a property loan. A face-to-face discussion was mandatory to apply for a home loan especially. This process is online currently. Every home loan financier has a customised loan application that requires being filled online. As a result, the concept of paperless undoubtedly augments the buying experience and the customer conversion ratio.

 Going paperless is advantageous from the stance of both service providers and customers. It addresses the complexities involved in documentation. Let’s consider an example. Earlier, customers used to provide written applications to open a bank account or apply for a credit card. Most banks currently use handheld electronic devices to scan and document the necessary details to grant a banking product. To open a bank account, you just need to provide your Aadhaar Card, which is electronically documented. Online documentation is easy. Moreover, the privacy of customer data is entrusted through a paperless system.

 Major banking institutions and financial institutions can diminish operational expenses or running expenses by 20-25% by adopting the system. This is the best solution especially for start-up companies, which can consider deploying reasonably priced solutions such as cloud storage. AI technology, a recent technology for banks, is also envisioned to be a significant contributor to reduce operational overheads. This technology is already in use for detecting fraudulent banking activities and obtaining online credit scores. The advent of robo-advisors, an algorithm-based financial consultant, offers individualised financial services based on your yearly income, age, risk-taking capabilities and investment objectives.

 Nowadays, customers are tough to comprehend and analyse, but thanks to the system. All types of banking transactions such as credit card payments, payment of housing loan EMIs, insurance renewals, etc., can be digitally documented, making it easier for service providers to predict, analyse and serve consumers better. Paperless finance is also a bonus for gaining the attention of non-banking customers. The concept is result-oriented and attention-grabbing. The people who never had a banking experience earlier are now moving towards net banking and e-wallets.

 The paperless concept is the latest trend in the whole spectrum of the financial services industry. Undoubtedly, it enhances competitiveness among service providers and acts as a double-edged sword to entice the potential audience. The concept makes the business of banking easier for customers and helps bankers improve the operational efficiency and the customer experience.