Producing value for shareholders is of the utmost importance in business. It doesn’t take an MBA to know that you should strive to reduce costs and maximize revenue, but what tools and tactics can help you reach that all-important goal? One of them is data entry software. It can help improve bank efficiency so you can increase shareholder value.
The concept is simple: lowering operating expenses and raising revenue brings increased profits. However, the journey can be quite complex. So, what areas of improvement should you target? Increasing non-interest income through more efficient services, bolstering data management power, and creating a proactive culture of operational enhancement and advancement are key.
Having employees, the backbone of a bank, focus their time on menial tasks, such as data entry, isn’t an efficient use of resources, nor is it a way to motivate them to grow within your financial institution. The cost for this modus operandi can be steep: according to data from the U.S. Bureau of Labor Statistics and the Center for American Progress, the tab for hiring and employing a single data entry worker can run up to $57,725 a year.
To help eliminate manual tasks and reduce operations costs, banks can use data entry software to free bank employees from mundane tasks, while saving approximately $16.57 per hour and achieving 100 percent accuracy every time. With this low-risk and low-cost solution, banks can provide more efficient services, including:
- Remote Deposit Capture
- Overdraft Protection
- Fraud Protection
The setup of data entry software pleases people inside and out of an organization: employees are freed to do more rewarding, revenue-producing work, which often means they will look to use data automation in more processes, i.e., untapped areas of profit potential. And, of course, shareholders see a positive return on investment from the resulting increased operational efficiency.
Banks are regularly expanding through mergers and acquisitions, which challenge their ability to integrate new data into their core systems.
Data entry software helps banks handle that complex process so they can leverage their expanded footprint without service interruption to customers. For example, without delays or exorbitant vendor fees, automation software helped integrate 2,500 loans and more than 20,000 deposit accounts for CB&S Bank from eight newly purchased branches.
Loan onboarding may not be the wave of data that is a post-acquisition migration, but it does constitute a critical, regular flow of revenue for a bank as interest income is driven by loan volume. Data entry software can also streamline that process by connecting the multiple systems involved that don’t typically communicate with each other.
The success of a bank is directly related to shareholder value. Maximizing opportunities and daily performance is the goal. By implementing data entry software in your bank’s operations, an organization’s people, power and profits become more aligned.
For more information, read our case study to learn how Standard Bank & Trust Co. eliminated a number of manual processes to focus on more revenue-generating activities and improve productivity and efficiency for the organization.