Achieving the Paperless Office – Electronic Communications Provide Convenience to Members

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E-statements are now fast becoming a very viable way to go paperless.

By Harry Stephens, President and CEO of DATAMATX

Remember the initial quest for the “paperless” office? The advent of desktop computers was supposed to allow us to convert all of our paper files, billing, payments, and more to digital bits and bytes. First magnetic tape, then removable disks, and CDs, DVDs and zip drives were supposed to replace those big metal cabinets. Next, we thought email would be the answer to eliminating the expense of printing and mailing statements and invoices. Members could receive these statements on their computers and would make deposits and submit payments by pressing a button on an easy-to-use interface. And paper would disappear from the office.

The devices that sit on our desks–or those that we now can carry in our pockets–certainly provide convenience and are fairly easy to use. However, shifting the huge volume of credit union transactions to a digital base has required building a supportive communications infrastructure, including related laws and regulations that have taken more than a decade to develop. But we are getting closer, and e-statements are now fast becoming a very viable way to go paperless.The green dimension

Electronic technologies developed alongside an increasing public concern for the environment, so that today, most businesses are expected to have a green initiative in place in order to be considered a responsible member of the community. This “greening up” can (and does) take many forms, such as using energy-efficient equipment, printing on both sides of sheet, or recycling ink cartridges and paper.

As a real boost to these efforts, e-statements make it possible for credit unions to offer a way to eliminate paper for monthly statements and direct payments. And certainly, today’s emphasis on going green serves as one good reason to move away from the paper statement to e-statements. However, the advantages of e-statements are broader than that. E-statements also deliver the ability to:

Reduce expenses related to printing and postage
Produce quicker delivery of statements in a format members may prefer
Work well as part a high-visibility “green” initiative
Provide an opportunity for regular communication with members
Generate quicker response and payment from members
Reduce payment processing time

Combining statements with educational informational or marketing materials produces the opportunity to add yet another facet to this type of communication and can help strengthen ties between the credit union and members, inspiring a greater sense of loyalty. Additionally, having the capability to design electronic statement to visually duplicate the printed document helps reduce any confusion and discomfort members might experience as they move from paper to electronic.

Current research

While e-statements definitely deliver the benefits outlined, they are not entirely new, and getting customers to migrate to e-statements and direct payments has been challenging. According to a recent study by NACHA, the association that monitors electronic billing processes, the move toward e-statements has been slow albeit steady, with the rate of migration increasing every year. Universities, telecoms, and financial services of all kinds are among the early adopters in the use of e-statements. Smaller businesses, those with revenues of $50 million or less, also show a strong migration rate to these electronic procedures.

For credit union members, the convenience of e-statements is a major reason for embracing them, particularly if you provide online processes to pay invoices, such as car loans. Not surprisingly, many consumers report that being able to pay “instantly” and avoid late payments and charges is a key attraction. However, many still claim that they like receiving a paper invoice as a reminder. Those generations who’ve grown up with digital technologies are the most likely to regularly use e-statements and even to demand it for use on mobile devices like smart phones. In fact, the widespread acceptance of mobile communications devices has expanded the availability of e-statements for people who may not have access to a computer.

A primary drawback to adopting e-statements has been developing the internal systems to support them, especially if the electronic statement includes information from various internal sources, like the marketing department or accounting. Security is another major issue. With everyone seeking convenience, lengthy and complex security log-on procedures tend to dampen interest.

An idea whose time has come?

As both electronic capabilities and environmentally friendly practices have become an expected part of our lives, the paperless office may someday become a reality. Although e-statements still face some challenges, these are being met with new and more easy-to-use solutions. For example, businesses of all sizes have found that they can implement a secure and effective e-statements program through a third-party provider, rather than having to invest in the equipment and personnel to do it all in-house.

The green aspect of e-statements is a key focus of the NACHA survey, and it shows that e-statements have proven to be an effective and high-profile way a credit union can display its commitment to the environment. Electronic communications do eliminate paper statements and all the costs associated with their delivery, processing, and storage making e-statements not only one important step in the commitment to our environment, but also a way to provide convenience to members in the quest for customer loyalty.

Harry Stephens is President/CEO, and founder of DATAMATX, a privately held, full-service provider of printed and electronic billing solutions. As an advocate for business mailers across the country, Stephens is actively involved in several postal trade associations. He serves on the Executive Board of the Greater Atlanta Postal Customer Council, Major Mailers Association (MMA), PCC Advisory Committee (PCCAC), and the Board of the National Postal Policy Council (NPPC). He is also president of the Imaging Network Group (INg), an association for Transactional and Direct Mail Marketing service bureaus. As an expert on high-volume print and mail, he has frequently been asked to speak to various USPS groups, including the Board of Governors, about postal reform and other issues affecting business mailers. Contact Harry at hstephens@datamatx.com. Find DATAMATX at www.datamatx.com.