The Cloud is Here to Stay in Financial Services

Mary Ellen Power, August 16, 2013

In a recent BAI Strategies article, Dan Holt supports cloud technology being the next great frontier for banks, based on a prediction from Gartner Research that the public cloud services market will increase 18.6 percent over 2012. In his article, Holt argues that while the route to the cloud will vary, all banks need to ensure that the technology aligns with business objectives. It’s only by aligning business goals with cloud technology acquisitions, says Holt, that financial services organizations will see a return on their investment.

So how are financial services organizations handling this adoption? What business goals are being met with cloud technology? Shared below are examples of financial services organizations using the cloud to change the way they do business:

  • Signature Bank, a Chicago commercial lending bank, wanted to offer its customers a better banking experience. When joining the bank, the amount of paperwork required significant time spent printing, applying wet ink signatures, scanning, and then delivering via courier, FedEx or by hand. The bank decided to make the cloud a part of its external services, cutting processes from days to minutes, by allowing customers to sign online.
  • Signature Mortgage did not have the budget or IT resources to build, purchase or support the types of electronic signature solutions in which larger national competitors were investing. With a cloud e-signature solution, there was no hardware or software to purchase, integrate or deploy allowing the lender to be up and running within 48 hours. The results include 100+ percent revenue increase since adopting e-signatures; nearly 98 percent of loans are completed electronically, in 24 to 48 hrs vs. 7 to 10 days; loans are closed in less than 25 days vs. the industry average of 45-60 days; and an 85 percent reduction in shipping costs.
  • To sign for a short-term loan through Cash Canada, customers used to need access to either a fax machine or computer to be able to receive the loan documentation, print it off, sign it and either fax or scan it back to the company. This slowed the process and was inconvenient for all parties.  By adding e-signatures into Cash Canada’s short term loans process, the company is now able to offer its customers the ability to complete a loan safely, securely and instantaneously from anywhere with internet access via a laptop, tablet PC or smartphone. The result: more customers and increased business.
  • For Teachers Credit Union, the level of electronic evidence was important in the decision to move to an online signature process. To meet this goal without compromising the objective to transform the customer experience, the credit union implemented an e-signature solution that digitally signs each document and captures the signing process including every web page and action that a consumer takes.
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Many banks and financial institutions are adopting an e-signature solution with digital signature technology specifically because it meets so many business goals. When implemented with care, both the short- and long-term investment in e-signature initiatives adds a very favorable return on investment for operations, sales and customer experience.

For more information about banking and e-signatures, download the Electronic Signatures for Banking Beginner’s Guide.