It is no secret that large community banks face the challenge of compering in today's "big bank" market while striving to maintain hometown bank service. The financial services space is saturated with institutions competing for neighborhood consumer business. Community banks have the common goal of identifying solutions to increase operational efficiencies without losing the customer service on which the institution is built.
First Federal Savings & Loan Assodation of Lakewood, Ohio, is a $1 billion community thrift that has 11 full-service branches serving several suburbs in the Cleveland region. First Federal offers its 35,000 customer base a selection of financial services and products without sacrificing personal service.
According to Eileen Cook, corporate records manager for First Federal, the bank is focused on its community and delivering the personal touch its customers have come to expect and appreciate. "Being heavily involved in the communities we serve has always been a priority for First Federal of Lakewood," she said.
In 1994, the bank addressed the need for increased operational efficiencies to compete with other financial institutions and provide increased customer service without sacrificing the quality of its products. It was bombarded with paper reports and copies and overwhelmed with the amount of work it took to sort and organize documents. First Federal wanted to reduce costs associated with paper-based processes, as well as decrease retrieval time for customer and operational documents.
More than a decade ago, First Federal was seeking to make its processes paperless, positioning it on the forefront of implementing document-imaging technology. The bank looked closely at three solutions to accomplish what it needed. During this time, the bank discovered Cleveland-based Hyland Software, developer of OnBase, an integrated enterprise content management software suite that enables organizations to manage digital content, including scanned paper documents, faxes, print streams, application files, electronic forms, Web content, multimedia files and e-mails.
"We needed a solution that met our needs and had the capability of providing added value so that we could increase efficiencies, which would ultimately impact customer service. We didn't want one solution that met one need; we needed one solution that we could leverage across the entire enterprise, expanding as we expanded," said Cook. "We selected OnBase because of its scaleable and modular architecture that allows us to add users and functionality as the needs of the bank evolve. It offered everything in one package."
First in Cleveland
Community banks, not unlike other financial institutions, are anxious to implement their selected solutions without errors and start experiencing results. The time it takes from signing the contract to going live can be frustrating. It can take several months just to get the software in place and several more months for the institution to see results. This impacts both the bank and its customers. First Federal wanted a successful implementation so that its focus could stay on customer service as opposed to setting up and worrying about a software system.
The thrift was able to go live within seven months after inking the contract with Hyland, integrating with its existing infrastructure and network configurations. The bank leverages several of the 80-plus modules that Hyland offers with OnBase. Its primary selected software applications include COLD, check image processor, image statements and document imaging. The document import processor and print driver were additions to the system as the bank's needs grew. As a result, First Federal believes it was the first bank in the Cleveland area to provide image statements to customers.
Today, more than 180 First Federal employees utilize the solution in several departments, including loan and investment services, branch operations and Internet banking. Additionally, the system is used for business operations, such as accounting, legal and research.
Paperless culture
All of First Federal's records are now in one location, relieving departments across the entire organization of the responsibility to store and retrieve documents. The hours people took for researching, locating and tracking records have been eliminated because all data is stored in electronic format, and everyone has immediate access to all files. Cook was responsible for sorting documents in the morning prior to the bank opening, which took two to three hours every day. She said the information is now already stored and ready for retrieval by the time employees turn on their computers. Additionally, the employees are more self-sufficient and can do their work without waiting for someone else to complete his/her task and physically move information to the next department.
According to Cook, the Onbase solution enables the bank to expedite internal processes without jeopardizing customer service. "The results have been phenomenal. We are now more efficient in every department, which has dramatically impacted the bank at large. We have rapid access and distribution of electronic documents, while our customers gain the ability to view check images the day after they clear. We are experiencing increased productivity throughout the entire organization," continued Cook. The bank has been able to re-focus employees without hiring new employees to accommodate growth. More information is being processed with the same number of people and customers are receiving added value from the bank.
First Federal achieved a return on its investment within 18 months. Increased efficiencies were experienced across the entire organization. The greatest impact on cost and time savings came from reduction and elimination of microfiche and paper storage, retrieval, shredding and shipping. Cook explained that the bank's return is much greater than hard dollar savings such as paper, postage costs, microfiche, etc. "The true savings includes both increased productivity and efficiency; instant access to vital information; and the ability to provide faster, more accurate service to customers."
"We constantly receive requests to add more documents to OnBase, and the solution can only continue to grow and expand as we find new opportunities for process improvements. As a result, we are gaining even greater efficiencies while continuing to offer our customers the latest technologies and products. In the last decade we have transformed from a bank that was overwhelmed with paper to a bank that is built around a paperless culture," added Cook.
[Sidebar]
"We didn't want one solution that met one need; we needed one solution that we could leverage across the entire enterprise, expanding as we expanded."
- Eileen Cook, corporate records manager First Federal Savings & Loan Association
[Author Affiliation]
Jason King is director of financial services solutions for Hyland Software in Cleveland.
