To sharpen its competitive edge, Banco Galicia wanted to delight its customers, but sluggish, paper-based processes hindered its ability to provide top-notch service.
Through a range of projects, Banco Galicia is using cutting-edge IBM enterprise content management solutions to transform itself into a paperless business, accelerating many critical processes.
24 hoursfaster response to credit requests by reusing information previously supplied
Acceleratesdocument transfer from branches to centralized areas for processing from days to minutes
Unlocksefficiencies by moving from paper to digital applications
Business challenge story
Getting ahead of the game
Competition in Argentina’s financial sector is intense. Banks that fail to respond fast to new customer demands run the risk of losing out to more agile rivals.
With this in mind, Banco Galicia set out to differentiate itself from the crowd. Its vision was that by providing truly exceptional customer service, it would be able to gain competitive advantage and attract new revenues.
Efraín Pereiro, system developer at Banco Galicia, takes up the story: “To deliver superb service, it’s critical that we respond quickly to customers applying for new financial products and enquiring about their existing ones.
“We recognized that a major obstacle stood in our path. The vast majority of customer correspondence arrives in paper format—for example, from customers filling out forms to apply for new mortgages, loans or credit cards. In the past, employees had to review each document and send it to the relevant department for processing. Given the volumes of customer correspondence involved, this classification process generated a mountain of work and slowed responses to customers. That was risky, because if we leave customers waiting too long, they may start looking elsewhere for financial products.”
He continues: “On top of that, because most of our data was stored in paper format, whenever customers or auditors requested specific information, we had to trawl through multiple files to find what we needed. The process was extremely time-consuming, and made it difficult to respond promptly to queries.
“We saw that our existing ways of working threatened to derail our plans for competitive differentiation, so we set out to find a solution.”
Building a paperless business
Banco Galicia embarked on an ambitious journey to become an entirely paperless business. For expert support during the transition, the bank engaged IBM alongside IBM Business Partners Sofrecom and LP y Asociados SRL. To underpin the new ways of working, the bank deployed a suite of sophisticated enterprise content management solutions from IBM. The solution was jointly deployed by various departments at the bank, including IT, Organization and System Development.
“After evaluating offerings from different vendors, we found that IBM’s proposal was the most suitable for the bank,” remarks Efraín Pereiro. “The IBM solution is extremely sophisticated, yet it is also easy to implement and use. What’s more, it’s extremely robust and highly scalable—important considerations for a solution that’s designed to underpin your entire business.
“We began our journey to becoming a paperless business four years ago, and IBM, Sofrecom and LP y Asociados SRL have been providing us with outstanding support all along the way. Our solution contains many different components, and they helped us to document them and learn how to make the most of each one.”
Today, many customers complete applications for new financial products and services on paper, and hand them in at a branch. These customer documents are scanned in branch and the sales manager generates a cover sheet, including a barcode containing important information about the document.
The digital file is then sent to a centralized repository. Here, Banco Galicia uses IBM® Datacap to automatically detect the type of document—such as a promissory note or a loan application—then classify and index it accordingly for easy search and retrieval. In cases where Datacap is unable to capture data automatically, an operator will input the necessary information.
Next, the indexed document is sent to an IBM FileNet® Content Manager repository for storage. This repository provides a central source of information, including the transactional profile of each customer, signed contracts and power-of-attorney documentation.
“We are currently using the IBM solution to digitize around 264,000 documents per month,” remarks Efraín Pereiro. “As we build up a larger store of digital documentation, we’ll also be able to reuse the information without having to ask the client to resubmit any documentation that we have already received.
Today, all customer documentation is stored in a single location, and teams across the bank can access the electronic archive swiftly and seamlessly on PCs and mobile devices using IBM Content Navigator. Rapid access to a consistent, comprehensive store of customer information is helping employees work much more efficiently and build up a much more detailed picture of each customer’s history, needs, and preferences. For instance, staff can review customer details to determine if they might benefit from an additional financial product—without even having to request additional information from the customer.
In addition, Banco Galicia designs new business processes using IBM Blueworks Live™. Once the processes have been remodeled, they are transferred to the process management capabilities in the IBM Business Automation Workflow for development and execution. Once the Datacap solution has classified a document, it automatically triggers the relevant process. The bank is also using IBM Operational Decision Manager to support its decision-making.
“IBM, Sofrecom and LP y Asociados SRL helped us design efficient, clear-cut processes for many aspects of our operations and manage them using the process management capabilities offered by IBM Business Automation Workflow,” comments Efraín Pereiro. “In addition, we have been able to automate several processes, saving staff time and meaning that the correct procedures are always followed. That enables us to simplify compliance and boost efficiency.”
In 2018, Banco Galicia further innovated by launching the first Coffee Banking Model along with the Starbucks company, in the City of Buenos Aires to reduce its investment in branch real state and operations. This space offers multiple services such as Internet access, Extended Hours, Co-Working and Meeting spaces. But on top of that, its principal plus points are the personalized attention for automatic banking and the digital self-management advice that is on offer. IBM Business Automation Workflow has been a key technology for this because they can easily integrate the back office with this new customer channel where they can start a 100% digital banking process with a simple SMS text, while the customer enjoys a coffee.
Stellar customer service
By moving to electronic content and streamlined processes, Banco Galicia is ramping up operational efficiency and providing better customer service than ever before.
“We can process and respond to customer enquiries much faster than ever before,” comments Efraín Pereiro. “For example, previously, it often took us 24 hours to approve credit applications—now, in many cases, we can reuse the information already supplied by the customer to provide an immediate response. In addition, we can also reply immediately to customer enquiries. Being able to reply so rapidly to prospective customers dramatically sharpens our ability to win new business. In addition, providing better service is also helping us boost customer retention.
“Similarly, if an auditor later asks us to justify that credit limit, we can quickly compile all information we have about that customer to explain our decision.”
As the bank continues on its journey to becoming a paper-free business, it will cut document management costs. In addition, the bank will be able to shrink its carbon footprint and pursue a more eco-friendly strategy.
Efraín Pereiro adds: “As we shift towards digitized documentation, our processes will become more efficient as we reuse more information that we already have.” Banco Galicia continues to work to streamline and automate workflows across the business, and can set up new digital processes in just 40 hours.
“As we embarked on our transition to becoming a paperless business, we found that many staff were reluctant to abandon their tried-and-tested ways of working,” notes Efraín Pereiro. “But now that the digitization process has begun and people see how much faster and more productively they can work, employees are on board with the vision.”
In the past, it usually took a day for physical documents to be sent from branches to centralized areas for processing. Now, the digital files arrive in just a few minutes.
Looking ahead, the bank is confident that the initiative will pay off by boosting agility, competitiveness and sales for years to come.
Efraín Pereiro concludes: “In many organizations, IT is viewed as an overhead. But here at Banco Galicia, we are delivering genuine value to the business by listening to what operational staff need and giving them tools that enable them to do their jobs better. We’re confident that IBM Analytics represents a sound investment in the future of our business.”
In Banco Galicia's 2018 enhancement of the first ever coffee banking system, Business Automation Workflow helps automate the process of product origination and digital documents management, using a process generated by decision rules, which makes the process efficient and orchestrated. In conjunction with agile methodologies and the customer experience focus, Galicia transformed bureaucratic processes into modern and simple processes with solid integration architecture and superior performance.
Founded in 1905, Banco Galicia is headquartered in Buenos Aires, Argentina, and employs more than 5,000 people. Listed on the Buenos Aires Stock Exchange, Banco Galicia is one of the country’s top three private banks, serving more than 7.5 million customers.
As of 2018, Banco Galicia has increased its distribution network in 28 new branches between Buenos Aires and the interior of the country and the last 2 consecutive years, Banco Galicia obtained an excellent result in the survey "Great Place to Work" securing the 1st place among companies with more than 1,000 employees.
- BlueWorks Live
- Content - FNCM
- Decisions - Legacy
Take the next step
LP y Asociados SRL was formed by the combination of leading companies in the Latin American market that promote value generation through use of intelligent solutions and process optimization. To find out more about products and services from LP y Asociados SRL, please visit: www.grupolpa.com/
Founded in 1992, Sofrecom specializes in providing industry expertise and a broad range of IT solutions to its clients. Headquartered in Buenos Aires, Argentina, the company employs more than 3,500 people. To find out more about products and services from Sofrecom, please visit: www.sofrecom.com.ar/ IBM Automation offers one of the world's deepest and broadest analytics platform, domain and industry solutions that deliver new value to businesses, governments and individuals. For more information about how IBM Automation helps to transform industries and professions with data, visit ibm.com/automation. Follow us on Twitter at @IBMAutomation, on our blog at ibmbigdatahub.com and join the conversation #IBMAnalytics.