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Digitization of back-office processes – the standard of banking business

As frightening as the digitalization of business seemed to us a few years ago, life is unimaginable without it today, especially in banks. The digital maturity of individual organizations still varies, so depending on what stage you are in, some of the following situations are still familiar to you, and some are fortunately a thing of the past.

High resource consumption and higher probability of errors

When we observe the back-office processes, for example customer onboarding or credit cards processing – the end result of documents processing is often a decision making. If the process is not digitized, each of the steps takes more time, and the speed of decision-making decreases proportionally. In addition, it is more difficult to collect and analyse data, which complicates and slows down the process of making strategic decisions related to the development of products and services of the bank.

Of course, we must not forget that in such a situation, operating costs are very easy to accumulate. From those created by the number of people and the amount of working hours required to perform a task, through the cost of paper documentation to the physical accommodation, or the archive for all these documents.

In highly repetitive activities, during data entry and processing, the probability of human error increases which means that the possibility of error in the core system increases if the back-office processes in the bank are not digitized. In cases of subsequent checks or any irregularities during the document processing process, communication with the front office segment is also difficult, as is the search for physically stored documentation.

How has digitalization solved the problems?

Digitization of input documents and automatic retrieval of data according to a predefined workflow have significantly accelerated processes. In the case of documentation scanning (in the office or through mobile capture) for customer onboarding, the assessment of the client and the establishment of cooperation is achieved much faster. Also, for the purpose of approving a loan, less time is needed to make a decision and place the necessary funds.

Data retrieved from documents via digital channels is a reliable platform for comprehensive analysis of both the individual client and the target segments. The consistency and quality of data is much higher and based on them it is much easier to make strategic decisions for the development of the bank’s products and services.

Operating costs are significantly reduced

  • Scanning of payment documents enables the reduction of manual tasks and thus the number of people, i.e. working hours for their performance.

  • Digitization of front office documentation reduces the amount of physical documentation and the cost of its transport to a minimum.

  • Only those documents that are subject to the obligation to keep - physical archive - are physically stored, and for all others, digital media are selected as a means of permanent storage - digital archive.

By digitizing documents, in addition to speeding up the process, the possibility of errors in data entry and processing is minimized.

Simplified document source tracking and an automatic communication system between the front and back offices facilitate subsequent checks and reduce the likelihood of irregularities during the document processing process.

Digitization of all documents and their storage in digital repositories enables quick and easy search according to a number of targeted parameters.

14 reasons for digitization of back-office process in banks

It is easy to conclude that the digitalization of operations in banks brings significant benefits for all participants in the process – from management, through employees to the most important – the user.


  1. Processes are optimized and faster.
  2. Data collection and analysis is enabled.
  3. Easier supervision of the process with the possibility of reporting/monitoring employees.
  4. Operating costs are reduced.
  5. Document security is increased.


  1. Reduced number of human errors.
  2. Facilitated document handling.
  3. Quick and easy search of digitized documents.
  4. Improvement of personal skills.
  5. Increasing of digital competencies.


  1. User experience in accordance with the expectations of the time in which we live.
  2. Faster realization of the ultimate goal of the service (e.g. loan approval).
  3. Reduced need to physically go to the branch.
  4. The availability of the service anytime and anywhere.

Document management strategy - the key to business optimization

The most common reasons for digitization in organizations are to reduce paper circulation, speed up the process and reduce costs. But what the path from theory to digital practice looks like, how this story works in everyday business and what additional benefits the unification of the document management system brings, find out in the white paper “Digitize, optimize and automate office operations”.

Digitize, optimize and automate office operations

The way to effective document management in front and back-office processes

Marija Berač Čizmić


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