ABA Banking Journal - September 2014 - (Page 39)
What's the best
Mobile? Analytics? No. Workflow. It's the best way to improve efficiency
n this low-rate environment, efficiency seems to be on the agenda
of every strategic planning session. Community and small regional
bank efficiency ratios are still about
20 points worse than big banks, which
means smaller banks pay 20% more
to earn every dollar than big banks.
As a group, community banks
haven't done much to address the
efficiency ratio. But in fairness, they
don't have as many tools as big banks
to address the three levers of efficiency ratio: net interest margin, noninterest income, and noninterest expense.
Increasingly, community and small
regional bank CEOs are looking for
technology to help improve efficiency
and manage noninterest expense. In
Abound Resources' annual CEO survey, the second-highest priority coming into 2014 was "using technology
for better efficiencies." (See the survey
Despite all the articles leading you
to believe that technology investments
are solely focused on mobile, one of
the hottest technologies is workflow.
Workflow is one of the best
enabling technologies for efficiency
BY BRAD SMITH
improvement as it is the tool for significant process improvement. It also
has the potential benefits of improving the customer experience, enforcing bank policies, and improving risk
management and controls. Workflow
is one of the best technology investments available.
What workflow means today
Workflow technology is simply a programmed series of steps that route
information and documents to the
appropriate employees or customers.
The first application of workflow for
ABA BANKING JOURNAL
Table of Contents for the Digital Edition of ABA Banking Journal - September 2014
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Around the ABA
ABA Banking Journal - September 2014