Whether the need is to pull up a client portfolio while discussing wealth management strategies in real time or preparing for an annual compliance audit, there are multiple reasons for financial institutions of every size to go with a DMS.
Document security. DMS systems allow administrators to track the location, version, and status of every stored document, and usually offer robust security and encryption features to protect sensitive data.
Disaster recovery. Effective DMS solutions offer document mirroring, storing a digital copy of mission-critical records in a separate location to quickly recover from an unplanned outage or cyberattack.
Simplified lifecycle management. Financial records must be stored for years, but not every document has the same retention schedule or is entered into the system at the same time. A good DMS will track document life by type and implement the proper retention and destruction schedules to maintain legal compliance.
Instant accessibility. Once entered into the DMS, documents can be retrieved with permissions-based access from anywhere to quickly respond to customer inquiries, with the ability to see a history of who accessed it previously.
Increased productivity. A DMS can increase productivity by creating rules-based workflows that keep documents moving through an organization. Automatic indexing and routing of digital documents speeds approvals. For example, documents such as invoices and purchase orders can go directly to appropriate decision makers for review.
Audit preparation. A centralized digital document repository with time stamps of when each file was entered into the DMS makes audit preparation simple.
Client retention. Fast and easy access to data improves customer satisfaction, builds trust, and ultimately creates long-term relationships.
Cost savings. Electronic document distribution reduces printing, postage, and storage costs, and speeds delivery to recipients.
Many of these benefits fall under the umbrella of compliance. A DMS aids in compliance by securely holding all critical data in a digital vault, allowing access only to authorized users to keep information private, thereby insulating the institution from exposure to a breach and potential damages from violations.