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Procurement Approaches for Document Imaging Solutions in the BFSI Industry

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by Aravindh Swamy N , Analyst-Category Specialization, Facilities Management
31 March 2019



This article will discuss the various procurement approaches that can be followed in the BFSI industry, which is highly document intensive. Companies in the BFSI industry have started to reduce the use of paper as part of their GO GREEN initiative and to provide speedier services to their customers. This has resulted in a process re-engineering in the BFSI industry that involves many process changes and workforce retraining. New solutions with more features are continuously being introduced in the market to ease processes. Both centralized and decentralized scanning are often used simultaneously, depending on the business applications and volumes and what fits best with process design and current infrastructure.

Many organizations that aligned their business processes to route mail directly to a centralized scan center have adopted a centralized capture solution. The incoming documents are routed to a mailroom, digitized, classified, and then forwarded directly to the relevant employee or business process.

Conversely, banks and insurance companies, for example, also have offices and agents located globally. This makes the physical transfer of documents difficult and expensive. A distributed scanning process allows documents to be captured quickly and easily, reduces storage cost, and improves security by reducing the risk of unauthorized access to confidential paperwork.

The following deliverables will cover the various aspects of process re-engineering in the BFSI industry for document imaging solutions:

  • Are the customer-identity documents created electronically at the branch or do the banks print and courier them to the document imaging team, which then scans and manually indexes them to the appropriate account and folder category?
  • Do banks have a centralized scanning and manual indexing team for customer-identity documents or do they scan the documents at the source itself?
  • Is there a way for all bank branches to convert these customer-identity documents into digitally readable PDF documents and store them securely in the records management repository using bar codes or OCR/machine learning (ML)/artificial intelligence (AI)?
  • Do banks have a single record management repository where all the scanned customer-identity documents for any loan or deposit account are stored?
  • With respect to document imaging of customer-identity documents, what are the OCR, ML, and AI solutions that other banks have deployed to replace manual indexing efforts, multiple handoffs, and time lag?

Centralized Vs. De-Centralized

Banks have offices and agents located globally, which makes the physical transfer of documents difficult and expensive, if not impossible. Distributed scanning allows documents to be captured quickly and easily. It also reduces storage cost and improves security by reducing the risk of unauthorized access to confidential paperwork.

Centralized De-Centralized

The conventional method of handling remote sites where the banks ship the customer documents from all the branches to a central team for scanning and indexing.

An approach where the documents are scanned and indexed at the branch and uploaded electronically into the server database


  • Greater control over quality
  • Less upfront expense (new equipment required)


  • Increased employee productivity and efficiency
  • Enhanced processing time


  • Logistic and transportation costs
  • Delay in processing


  • Initial capital expenditure (setup costs)
  • Expenses on retraining employees

Case Study




BBVA Peru’s existing process to consult with a new customer and open a new bank account took approximately seven days, a delay that was causing BBVA to lose prospective customers.

Xerox Consulting Services installed 378 DocuMate 262i scanners in all branches and retrained employees to automatically scan all bank credit documents including applications and plastic identity cards.

  • Substantial time and cost savings
  • Easy installation, training, and maintenance
  • Improved document management processes
  • Increased revenue growth

 In-house Vs. Outsourcing

Banks can look for in-house document management systems from service providers like Xerox, rather than outsource the entire value chain to a third party, such as Iron Mountain.

In-house Outsource

The documents are scanned and indexed in-house.

The scanning and indexing services are outsourced to service providers, who take care of the entire document management, in some cases


  • Better process knowledge for entry and indexing
  • Protection of sensitive data and faster turnaround


  • No setup (CapEx) and training costs
  • High quality and expertise


  • Expenses on equipment and employee training
  • Continuous regulatory compliance


  • Integration issues and lack of process involvement
  • Confidentiality concerns

Case Study




Citibank Egypt faced many obstacles in productivity improvement and incurred unnecessary expenditure on its outdated document management system.

Citibank engaged its existing print solutions vendor—Xerox—for document management solutions. Xerox offered the following solutions:

1. Xerox® Office Document Assessment to streamline the office environment
2. Restructured technology using Xerox® multifunction devices that print, scan, copy, and fax
3. Xerox® Enterprise Print Services to manage a fleet of document devices, including maintenance and supplies

  • Substantial time and cost savings
  • Easy installation, training, and maintenance
  • Improved document management processes
  • Increased revenue growth

Conversion and Integration

Document solution providers like Xerox, Canon, Epson, and others are increasingly offering solutions to enable banks to convert their customer-identity documents into digitally signed, readable PDF documents. The system also stores these documents securely in the records management repository using bar codes, or OCR/ML/AI. 

Challenge Solution
  • The finance company was concerned that its document processes were impeding the growth of its loan portfolio.
  • A significant amount of work was wasted when the prospective borrower withdrew their application because they received funding elsewhere.
  • Canon Business Process Services (Canon) implemented a wraparound document process that logically connected the front-end document intake with imaging, file management, printing, and mail production functions.
  • As loan applications arrive in the mail daily, they are logged, prepped, and immediately imaged. The imaging process involved indexing, data capture, and quality control. Barcode and document management technology were deployed to reduce cycle time and automate the record-keeping process.
  • Canon reduced the hard-document process costs by more than $100,000 in the first year alone.
  • Improve the bank’s relationship with its customers and suppliers by faster turnaround of its incoming mail
  • Simplify document workflows and ensure document security
  • Reduce filing costs
  • Xerox, as a single provider with dedicated operators, helped to centrally manage the digitization (scanning and indexing) and onward distribution of documents.
  • Implementation of an access-controlled online document management system combining content management and workflow management
  • Customization of business process workflow elements
  • The results were increased productivity and faster response to customers. Over two million documents made fully traceable through digitization and reduction in total costs.

Record Management Repository


Case Study—Implementation of AI



For customer on-boarding, the self-learning solution enables a dynamic and customized questionnaire that can adapt to the customer’s responses and prior intelligence gathered from various sources

One of Africa’s largest banks:

  • The bank successfully leveraged WorkFusion’s RPA and AI solution to significantly reduce the time taken for client on-boarding and KYC from 20 days to just five minutes.
  • The bank’s client on-boarding system is already live in Singapore, India, and the UK, and will soon be launched in other markets in Europe and the UAE.

Banks can benefit from AI/ML solutions in numerous KYC aspects, such as identity and background pre-checks for remote KYC, customer on-boarding, real-time transaction-based KYC anomaly detection, and KYC workflow automation.

One of the largest U.S. banks:

  • The bank recently introduced a Contract Intelligence (COiN) platform designed to ‘analyze legal documents and extract important data points and clauses’. A manual review of 12,000 annual commercial credit agreements normally requires approximately 360,000 hours. The initial implementation of the ML technology showed that the same could be reviewed in seconds. COiN has widespread potential and the company is exploring additional ways to implement this powerful tool.


  1. http://www.xeroxscanners.com/en/us/Press/documents/FinalBBVAPeruSuccessStory.pdf
  2. https://www.accusystem.com/blog/centralized-vs-decentralized/
  3. http://www.fujitsu.com/nl/Images/151010_Whitepaper_Banking_EN.pdf
  4. https://doxtek.com/wp-content/uploads/2015/02/Weighing-the-pros-and-cons-of-centralized-scanning-and-decentralized-scanning-final1.pdf
  5. https://www.alarisworld.com/~/media/files/im/positionpapers/the_future_of_intelligent_document_capture.pdf
  6. https://www.xerox.com/downloads/usa/en/gdo/casestudies/Citibank_Egypt_LR.pdf
  7. https://www.aiim.org/PDFDocuments/38054.pdf
  8. https://cbps.canon.com/assets/pdf/CaseStudy_RM_FinSvs_ShorterLoanCycleTime_CanonBusinessProcessServices.pdf
  9. https://www.xerox.com/downloads/gbr/en/f/Financial_Services_Compendium_XE_en.pdf
  10. http://www.fujitsu.com/nl/Images/151010_Whitepaper_Banking_EN.pdf
  11. http://www.fujitsu.com/nl/Images/151010_Whitepaper_Banking_EN.pdf
  12. https://emerj.com/ai-sector-overviews/ai-in-banking-analysis/
  13. https://www.finextra.com/newsarticle/32917/standard-chartered-picks-instabase-to-automate-client-onboarding/ai
  14. https://www2.deloitte.com/content/dam/Deloitte/in/Documents/financial-services/in-fs-deloitte-banking-colloquium-thoughtpaper-cii.pdf
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