Banks and financial institutions ship sensitive data — and a lot
of it. This means they must ensure shipments are secure, and
delivered to the correct recipient. But they must also keep a check
on shipping costs. In the latest Precision Report we look at how
desktop shipping can help banks achieve this.
Banks are some of the world’s biggest and busiest parcel shippers.
What’s more, in the US, the banking and parcel delivery industries
grew alongside each other.
Here’s a quick history lesson. In 1850, Henry Wells, William Fargo
and John Butterfield founded American Express. At the time, the
company was an express mail business based in Buffalo, New York. Like
many others, Wells and Fargo saw the California gold rush as a chance
to make a fortune — not by digging the gold, but by transporting it
coast-to-coast. When the two were unable to convince American Express
to expand out West, they formed Wells Fargo in 1852.
Even in these days of 24/7 online banking, financial institutions
ship thousands upon thousands of loan documents or credit agreements
every year. By law, these and other critical financial documents must
be signed on paper. All parties must also receive physical copies. As
a result, banks generate a lot of paper that they need to move.
Because these documents contain sensitive information, banks need to
ensure that only the correct recipient receives them.
In addition, banks ship thousands of documents across regional,
national and global locations. This inter-office paperwork often
contains confidential data. Therefore, the secure transport and
delivery of these documents is paramount.
The aggregate cost of these shipments is high. Banks, therefore, must
balance the need for security with the need to control costs.
Six Benefits of Desktop Shipping
shipping allows banks and financial institutions to accurately
track, manage and reduce costs associated with shipping parcels. But
it does so much more too. Here we discuss six benefits of desktop shipping.
Banks who do not use desktop shipping will generally choose a trusted
carrier for their parcel delivery needs. This is understandable. It
would be a drain on staff time to research delivery options for each
parcel shipment. However, it also means that banks miss opportunities
to get better rates and faster service. Mailroom staff generally
follow established procedures to reduce shipping costs, while
administrative staff often ship parcels on an ad hoc basis. This adds
up — especially for large institutions working across different sites.
Poor management of parcel shipments can hike up costs — by at least 20
percent every year.
Desktop shipping streamlines this process. Banks can institute a
number of shipping rules depending on the nature of the shipment.
These are generally “behind the scenes.”
At desk level, employees move through a number of simple steps to
ensure that a parcel is sent with the correct service level and best
rate. With desktop shipping all banking employees become
self-sufficient in carrier rate and service selection. This reduces
shipping spend. In addition, employees can allocate carrier charges to
the correct cost center.
INCREASE SHIPMENT VISIBILITY
Secure shipping and chain of custody controls are vital for banks.
When you ship sensitive documents or foreign currency, you need to
know the status of every package.
Desktop shipping provides this visibility by giving you a centralized
portal to track the whereabouts of all shipments with all carriers. In
addition, desktop shipping provides exception alerts if something goes
wrong. This allows banks to proactively rectify problems if and when
Furthermore, different branches and locations may have their own
procedures, or use local carrier services. As a result, parcel
shipping data is often fragmented across a number of carrier systems.
With desktop shipping, banks gain a single source of truth across all
parcel shipping operations.
BETTER DECISION MAKING
At management level, desktop shipping provide the tools for better
decision making around reliability, vendor selection and routing.
Managers can see which carriers have the best history of on-time
delivery, and can identify routes that are most prone to problems like
loss or late delivery. You know before your shipment leaves your
possession what the on-time delivery performance is for your carriers.
This establishes trust in your carriers, and by extension, trust in
your financial organization’s ability to handle shipping challenges.
IMPROVED CUSTOMER RELATIONS
There was a time when customers didn’t expect great service from
their bank. “Bankers’ hours” were not designed to make banking
convenient for the customer — they were set up for the convenience of
the banker. Customers no longer tolerate poor service. Banks are in
competition with one another, as well as digital payment technology
providers. Banks can combat this threat by placing emphasis on
customer satisfaction, convenience and value.
Desktop shipping solutions allow banks and financial services
institutions to ensure they offer customers convenient and reliable
services. On-time delivery of important documents positively impacts
customer satisfaction and retention. If important and confidential
documents are delayed, go missing or fall into the wrong hands,
customers will no longer trust a bank to manage their financial affairs.
GET ALL YOUR DOCS IN A ROW
One of the ironies of shipping documents is that you need a lot of
documentation to do so! With desktop all the documents needed to
execute a shipment are included. Desktop shipping solutions generate
and print the correct shipping labels and documentation — including
documentation needed for global locations.
Cross-border shipments often have augmented documentation
requirements. These vary by country, package contents and other
factors. With desktop shipping, banks can create accurate and complete
documentation for each shipment. This helps to ensure that shipments
are not held at border crossings. Desktop shipping also allows banks
to track shipments in transit.
A robust desktop shipping solution should include the key
capabilities needed for parcel shipping, trade compliance and global
documentation. As a result, banking staff become proficient at
shipping nationally and internationally.
Another area of concern for banks is compliance. Customs compliance
is critical for getting parcels across borders in a timely manner.
Regulatory compliance is necessary to avoid fine and penalties.
Desktop shipping solutions allow institutions to address these
concerns. A comprehensive desktop shipping solution allows banks to
perform compliance checks, verify recipients have passed denied party
screening, validate the country of destination and ensure that any
special documentation or actions are included. This allows banks to
mitigate compliance risks and perform due diligence as well as create
audit-ready electronic reports.
About Precision Software – Trusted Global Trade and Transportation Execution
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
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, Precision Software 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. Precision Software’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 Precision Software, visit www.precisionsoftware.com.
SUBSCRIBE TO PRECISION
To subscribe to the Precision Report, or to receive notifications
about Precision events, webinars and news, please click here.