Banks ship many sensitive parcels every day. In this QAD Precision Report we discuss how desktop shipping can help banks provide excellent customer service and confidentiality, as well as remain compliant and control costs.
Banking and financial services firms are among the world’s largest shippers of documents and parcels. It’s little wonder, since the parcel shipping industry actually began with the banking industry’s need to ship money and documents across long distances in the American west.
The banking and financial services industry continues to rely heavily on parcel shipping to do business, but until recently has not had access to technology that could accurately account for the cost of those shipments. That is changing with desktop shipping solutions. Desktop shipping solutions allow banks and financial institutions to accurately track shipping related expenditures, manage shipping spend and reduce costs associated with shipping parcels.
WHY BANKS AND FINANCIAL INSTITUTIONS NEED DESKTOP SHIPPING
Banks are Among the World’s Largest Parcel Shippers
In spite of the growth of digital technologies, the need to ship physical documents to banking and finance customers and between institutions has only grown. Although digital signing technology is widely available, the law requires customers to sign many important documents on paper. These would include credit contracts, loan documents and other critical financial documents. In addition, banks must deliver final, physical copies to all parties. As a result, banks generate and move a lot of paperwork.
Financial Institutions Struggle to Control Shipping Costs
Parcel shipping continues to play a key role in the financial services industry, but it is a cost center that hasn’t been well controlled until recently. Decision making around shipping parcels might go no further than setting a blanket policy stating, “We use X carrier” with individual employees left to determine how to best balance the need to reduce cost with the need for fast delivery.
Desktop shipping applications streamline and centralize this process and provide better reporting and analytics for managers across the enterprise. At the user level, employees and branches that need to send shipments are able to easily determine which carrier can provide the best rates for each shipment based on where it needs to go, when it needs to arrive and what rate each shipping vendor might charge. This helps reduce shipping costs.
At the management level, desktop shipping solutions also provide tools for better decision making around reliability, vendor selection and routing. These solutions allow managers to see which vendors have the best history of on time delivery, and can identify routes that are most prone to problems like loss or late delivery.
Customers Expect Low Cost, High Reliability
One of the biggest challenges for banks when it comes to parcel shipping is that customers expect shipments to arrive quickly, reliably and at no cost to them. At one time, customers understood that if they wanted a shipment to arrive quickly, they might need to pay extra for that. There was an understanding that shippers weren’t always reliable; sometimes packages would arrive late or not at all.
Today’s customers are no longer willing to tolerate low service levels. Now, retailers and other shippers are competing to provide the fastest, cheapest service to customers. It has become an important element of customer satisfaction.
Banks may not think of themselves as being in competition with online retailers, but in a sense they are, especially as digital payment technology becomes more advanced. The industry is facing challenges by digital payment options like Apple Pay and Google Pay, cryptocurrencies and online fintech companies like Revolut. Banks will need to combat this threat by placing emphasis on customer satisfaction, convenience and value if they want to compete.
Desktop shipping solutions allow banks and financial services institutions to compete on this playing field by delivering better insight into which carriers are able to offer the best pricing and reliability, so that banks can deliver to customers on time, every time. This positively impacts customer satisfaction and retention—the hidden costs of unreliable shipping.
Compliance and Security are Major Concerns
Another important area of concern for banks and financial institutions has to do with regulatory compliance and shipment security. Desktop shipping solutions allow institutions to address these concerns through compliance checks that ensure packages aren’t delivered to denied parties or embargoed countries. Firms can also ensure that only the appropriate recipient can accept packages that containing sensitive material.
Desktop shipping solutions also allow banks and financial institutions to create accurate and complete documentation and reports for each shipment. This helps to ensure that shipments are not held at border crossings, and that the appropriate documentation needed to track shipments while they are in transit is easily accessible and available to those who need it.
Since the earliest days of parcel shipping, banks have been at the leading edge of package delivery technology, but they couldn’t always access the information they needed to make sound decisions around desktop shipping. Today, with desktop shipping solutions, banks and institutions can benefit from improved insight into shipping carriers and rates to develop and implement better policies across the organization, control costs and deliver better service to customers.
About QAD Precision – Trusted Global Trade and Transportation Execution
QAD Precision (Precision Software), a division of QAD Inc., provides industry-leading global trade management, transportation execution and multi carrier shipping software solutions from a single, integrated platform. Preeminent industry leaders in every region of the world rely on QAD Precision’s global support centers to leverage thousands of carriers and manage millions of shipping transactions every day. Our open architecture easily integrates with Enterprise Resource Planning, Warehouse Management Systems and legacy solutions. An ISO-certified company, QAD Precision assists companies to minimize shipping costs, optimize first mile and last mile deliveries, automate free trade agreement compliance, avoid customs delays and mitigate the risks associated with dynamic trading environments to maximize their competitive advantage. QAD Precision’s customers span multiple industries including banking and finance, life sciences, high technology, retail, industrial, automotive, higher education and public sector as well as logistics providers. For more information about QAD Precision, visit www.precisionsoftware.com.
LET’S KEEP IN TOUCH
To subscribe to our blog, or to receive notifications about QAD Precision events, webinars and news, please click here.