For credit unions evaluating the implementation of a document management system (DMS), one of the key considerations is the return on investment of making the decision. As with any technology investment, a DMS must provide greater value than its cost in order to be an asset for your institution. But how can you make the determination of the true ROI with so many factors to consider?
Analyzing these four areas will give you an effective framework for calculating the ROI of your credit union’s DMS decision:
- Organizational productivity gains. One of the key benefits of using a DMS system is the overall increase in productivity it can facilitate in your credit union. It translates into greater profitability and the opportunity for your credit union to scale both its internal capabilities and member services.
Some of the key ways a DMS can deliver ROI in this area include:
- The elimination of bottlenecks created by paper-based collaboration. With all of your credit union’s documents securely stored and backed up in the cloud, users of your DMS will be able to access and edit files in real-time from their own devices rather than waiting for a paper or even electronic file to be available for editing from one user to the next.
- Easy access to an organized filing system. A DMS can help you boost the productivity of your team by saving valuable time sifting through paper or files on a desktop computer with robust search functions, allowing users to find documents in seconds by keying in specific keywords, dates, and other identifiers.
- Convenient file conversion capabilities. The right DMS can eliminate seconds or even minutes per document in the process of converting paper documents to electronic ones and organizing and filing documents directly from email attachments and other sources.
- A more cost-effective IT infrastructure. The savings on physical IT equipment and related services is significant when you transition to a cloud-based DMS system which replaces many of these needs. Imagine being able to eliminate these annual investment costs: multiple software license fees, hardware to store and secure documents, and unnecessary outsourced IT costs. These items alone may justify the investment in a DMS system as they often represent thousands of dollars that can be returned to your credit union’s bottom line.
- Cost reductions related to physical assets and supplies. A key component of cost savings which supports the ROI of implementing a DMS system for your credit union include reduced physical storage needs. Consider the amount your credit union spends on file cabinets and printers, offsite storage fees for document storage, transporting documents to offsite facilities. printing supplies (ink, toner, etc.), and of course, paper!
Once again, a DMS delivers ROI here, eliminating a large portion of your credit union’s printing and storage supply expenses.
- Employee output increases profitability potential. If each one of your consumer and business loan originators and processors could transact more loans in less time, that would certainly add to the ROI of a DMS, wouldn’t it? This is exactly how a DMS can help your credit union expand its loan capacity, produce more shareholder profits and serve more members conveniently.
A DMS not only saves many minutes (or even hours) on each loan application when compared to a paper or desktop-based system, but it also increases security and allows you to offer remote service to your members—your team can access, receive and request e-signatures on loan documents from any location using a DMS, such as SmartVault.
When you calculate the ROI potential in each of the above areas and subtract it from your existing expense structure, it’s easy to see how they can easily offset the implementation investment of a DMS for your credit union. Using a business case such as this to evaluate the merits of transforming your credit union’s document management strategy is a clear-cut way to make a sound decision—one that will pay dividends for your credit union in these four key areas and beyond.