"The Documentation Dilemma" Report Digs Into Real Cost of
Compliance and Need for Faster AI Adoption For Small to Mid-Sized
Banks, Credit Unions
AUSTIN,
Texas, July 24, 2024 /PRNewswire-PRWeb/ -- New
research commissioned by Hapax, an unprecedented AI for the
financial services industry, found that bank employees spend 20% of
their workweek searching for and managing documents to ensure
adherence to regulatory requirements and internal policies.
The report, titled "The Documentation Dilemma," reveals that the
significant amount of lost time is not only detrimental to the
bottom line but also undermines the core objectives of small to
mid-sized banks and credit unions. Specifically, 62% of respondents
indicated that this lost time impedes their capacity to serve the
community and cultivate stronger customer relationships.
"Say a bank employee makes $40 an
hour, and 8 hours each week is spent just tracking down information
needed to do their job accurately, which comes out to nearly
$17,000 per employee each year that
banks and credit unions are losing," said Kevin Green, COO of Hapax. "That's staggering –
especially for smaller financial institutions that are struggling
with a lack of resources and expertise to keep up with an
ever-changing regulatory and competitive environment. Furthermore,
that is time that can be better spent advancing their business
goals and serving their customers and communities."
While data and compliance challenges are a reality for banks of
all sizes, limited resources place a disproportionate burden on
small and mid-sized financial institutions. According to the
report, 61% of respondents feel that compliance burdens are
disproportionately greater for small to mid-sized banks and credit
unions compared to larger institutions. This is not surprising,
given that nearly half (48%) of respondents say that their
bank/credit union lacks adequate resources to keep up with
regulatory changes. In fact, those at institutions with 100
employees or less were 15% more likely than average to say
this.
Bank employees see AI as the solution. Among respondents, 53%
believe AI would improve job satisfaction, 47% think it would boost
their confidence in their work, 43% see it as helping build
stronger client relationships, and 61% feel it would enhance
productivity. Perhaps this is why Hapax is seeing rapid adoption of
its purpose-built generative AI platform. Launched in April, it has
already onboarded more than 20 U.S. banks.
"Bankers don't want and can't have magical AI solutions. An
important part of our product is that it's built for bankers based
on validated questions and answers from other bankers, giving users
confidence that the decisions they are making are the right ones,"
said Green. "A big promise of fintech was that it could be the
great unifier, but instead – for years now – technology has been
the divider between big banks and small banks. It's a story of the
haves and the have-nots. Our mission is to change this. To use
technology to bridge gaps, not widen them. Through AI, this can be
achieved because bridging that gap starts with equal access to
information, and this is just what Hapax offers."
A deep dive into The Documentation Dilemma gives even more
insight into the challenges facing the banking industry today.
Additional key findings include:
- Time lost negatively impacts customers and communities: More
than three-quarters (78%) of respondents find it challenging to
locate the information they need at work. 82% say asking others for
information hinders their job efficiency. Specifically, 75% have
had to ask a peer for information they couldn't access, 74% needed
clarification, and 66% found their information outdated. This has a
domino effect that impacts customers. 62% report that
time-consuming document tasks hinder their ability to serve the
community and develop stronger customer relationships.
- Administrative tasks drain employee satisfaction: 43% report
difficulty finding information and managing documents negatively
affects job satisfaction, and 32% say it leads to decreased
work-life balance, which can lead to turnover. Compliance issues
can also pose security risks and reduce public trust, as 79% say
that information disorganization reduces public trust in financial
institutions.
- The banking sector is grappling with a significant labor
crisis: A substantial 61% report facing staffing challenges, and
64% have found hiring particularly difficult over the past 12
months. This trend is likely to continue, with 65% of businesses
predicting ongoing hiring challenges in the next year. Among
workers in small to mid-sized banks and credit unions, 39% are
thinking about leaving their current positions. Additionally, 38%
of employees in the financial services industry are considering
leaving the industry altogether. This underscores the need for
solutions that promote efficiency.
For additional information and to access the complete report,
please visit https://www.askhapax.ai/research. To learn more about
Hapax and how it is changing the game for financial institutions,
please visit https://www.askhapax.ai.
Methodology
The Documentation Dilemma findings are based on a survey of 600
people who live in the U.S., are 18 and up, and are employed or
have recently been employed at a small to mid-sized bank or credit
union.
About Hapax
Hapax is an unprecedented AI for the financial services industry.
Leveraging an exclusive partnership with CBANC, it utilizes 13
years of proprietary data, consisting of 20,000+ documents, 10,000+
hours of videos, and 230,000+ strategic conversations between
bankers. This allows the product to deliver accurate and validated
responses needed by the heavily regulated banks. Via its product,
Hapax aims to bridge the information gaps between big banks and
smaller banks by making access to complex information ubiquitous
and immediate. To learn more, visit https://www.askhapax.ai.
Media Contact
Rebecca Reese, Kickstand, (603)
305-4155, hapax@meetkickstand.com,
https://www.askhapax.ai/
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SOURCE Hapax