Overview
Digitizing Record Management
The value chain of bank’s record management system from origination to destruction, is mired in inefficiency and antiquation, while increasing regulation is placing growing pressure on financial service providers.
The end-to-end value chain of a bank’s record management system, from origination to destruction, is mired in inefficiency and antiquation. Increasing regulation is placing more pressure on financial service providers to ensure effective record management.
Industry Categories
Related Topics
asset tracking | digitization | finance | finance industry | financial services | record management | security
Key STRATO Features
Context & Challenges
Deloitte found record management expenses in excess of $21m per annum. For each account at origination, no less than 10 pages were generated, which then need to be transported, validated, warehoused, and destroyed, all manually and at further cost.
In addition to the record management value chain being complicated and lengthy, regulation around it continues to increase and add pressure on financial service providers. Regulation demands increased transparency, more effective reporting, and better management and reporting. Treating Customers Fairly (TCF), the Protection of Personal Information Bill (POPI), and the Consumer Protection Act (CPA), are examples of the kinds of standards that FIs must abide by.
Complying with acts like the Financial Intelligence Centre Act (FICA) requires that customers be contacted by financial institutions to provide their particulars and documents more than once. This is an indication of the kind of duplication and redundancy that is inherent to the creating accuracy for the current value chain. The cost of this duplication is not only financial, and time-related, but also reputation related. Customers can often feel irritated or distrustful when asked for the same information twice. 50% of customers surveyed by Deloitte stated that in the last 12 months, they were asked to re-supply the bank with copies of their ID and Proof of Residence documents.
The cost of duplication is compounded by many FIs who have more conservative attitudes to record keeping and store many records for longer than necessary, which is itself costly, time-consuming, and a waste of space.
In addition to the record management value chain being complicated and lengthy, regulation around it continues to increase and add pressure on financial service providers. Regulation demands increased transparency, more effective reporting, and better management and reporting. Treating Customers Fairly (TCF), the Protection of Personal Information Bill (POPI), and the Consumer Protection Act (CPA), are examples of the kinds of standards that FIs must abide by.
Complying with acts like the Financial Intelligence Centre Act (FICA) requires that customers be contacted by financial institutions to provide their particulars and documents more than once. This is an indication of the kind of duplication and redundancy that is inherent to the creating accuracy for the current value chain. The cost of this duplication is not only financial, and time-related, but also reputation related. Customers can often feel irritated or distrustful when asked for the same information twice. 50% of customers surveyed by Deloitte stated that in the last 12 months, they were asked to re-supply the bank with copies of their ID and Proof of Residence documents.
The cost of duplication is compounded by many FIs who have more conservative attitudes to record keeping and store many records for longer than necessary, which is itself costly, time-consuming, and a waste of space.
STRATO can digitize and streamline the record management value chain, eliminating much of the associated grunt work and costs.
- STRATO’s inherent security maintains access records, automatically verifies and validates data, and builds consumer trust
- STRATO’s smart contracts can archive and destroy records automatically without human intervention
- STRATO’s single ledger can store records on shared content servers and back up daily, reducing the need for physical transport and associate costs, and allowing re-use without re-transport
These solutions, as provided by STRATO drive a number of tangible benefits:
- Reduce record management associated costs by 60-70%
- Reduce operating expenses in processing divisions by 25%
- Streamline the record management value chain
- Eliminate grunt work, duplication, and risk of error
Solution Benefits
Reduce the potential of error through automation, and ensure all data is updated in real-time
Through automated immutability, time-stamping, and traceability, impose transparency on record management processes
By creating a single, distributed ledger, drive industry standardization and allow for seamless communication between currently disparate parties
Automate certain actions through smart contract logic, automatically introducing rules, models, data, and transactions to be automatically enforced or updated
Prevent and seamlessly identify payments fraud by inherently verifying all data and tracking all involved parties
Use STRATO's scalability to scale to include infinite groups and institutions on shared private chains, creating standardization
Any STRATO insurance solution leverages STRATO's enterprise grade features
RESTful APIs for direct connection of IoT devices such as bankers' devices to the blockchain network
Identity Management, OAuth and SSO capabilities for simplified IoT authorization and user login
Privacy via private chains to keep sensitive data private and control who sees what data
Enterprise Data Modeling for integration into existing data systems, and to ensure interoperability
