Can using less paper improve risk management?

For many companies, the masses of paper that they use are not only detrimental to the environmental but also a security risk. Over the past 12 months, the banking world has been under intense pressure to examine its practices and, as a result, there has been an increase in the need to review bank charges and clerical expenses; reviewing an extended history of client’s accounts is now a necessity.

By pushing for paperless banking, not only do consumers create a system which allows easy options for companies to choose the green solution and develop initiatives aimed at encouraging in-house paper saving, but costs and security breaches can also be vastly reduced.

Speaking at a recent FST US summit, Madhavan Rhagamacharvi of Morgan Stanley said: "Data Document automation will aid in freeing up staff, reducing costs and maintaining 100% data accuracy. Changing compliance regulations, non-integrated technologies, and the complexity of the document life cycle are the main document management challenges integral to the financial services industry. Big business discussed how they would reduce costs and eliminate wasted resources, ultimately saving money and streamlining processes."

Particularly within the financial industry, there has been a lot of support for the idea because the promise of savings, an environmentally sustainable banking system and improved customer relations are a strong lure. However, the pressure will be put on consumer majority and digital storage capabilities who will have to successfully implement the technology and make sure it is adequately secure.

At the FST US summit, the likes of Jeanne Capachin (Research VP, Global Banking, IDC Financial Insights), Rein Hofstra (Bank of America), Leon Wilson (BB&T) and Madhavan Rhagamacharvi (Morgan Stanley) led the discussion on how more value can be generated from data repositories and how productivity levels can be improved as a result, in addition to the overall reduction of compliance risk.

Furthermore, discussions at the summit also covered the debate of efficiency and business speed, with many arguing that by streamlining information sharing and information access across all business lines, the pace of operations would not just increase productivity but reduce operational costs. By eliminating paper waste, companies eliminate the costs associated with it and organically support green initiatives that promote environmentally responsible practices.

A world without paper?

While banks are just coming around to the idea of conducting business in a paper-free environment, there are still many realms where paper will continue to play an essential role...

Printed Media: For all your iPads, Kindle eBooks and online websites, books, newspapers and magazines will never go away. Tactile, throwaway, portable and inexpensive, the print media's versatility will endure even if digital comes to dominate in the future.

The Bathroom: Printed media may find that its spiritual home becomes the bathroom, where it will be joined by another enduring mainstay - toilet paper. Unless, of course, that seashell system featured in 1993's Demolition Man can be made reality...but we're still waiting.

Post-It Notes: You're in the office, reading an emailed article, texting an invitiation reply and planning your powerpoint presentation, but when the phone rings for an absent colleague, do you reach for your smartphone or laptop to record the message, or grab a Post-It note and start scribbling? Unless you're a dangerously committed technophile, you do the latter, because it is just much more intuitive.