ECM Modernization
ECM modernization is the process by which an organization systematically improves its processes, systems, and technology for managing enterprise content. ECM modernization is especially relevant for banks and credit unions due to the large amount of documentation and information that must be collected, retained, and purged.
Overcoming Challenges of Legacy ECM Solutions
ECM modernization initiatives occur for a variety of reasons, not the least of which includes addressing challenges posed by legacy platforms.
- Maintenance costs: Troubleshooting technical issues, developing workarounds, navigating complex software licensing, and ensuring system uptime requires specialized expertise that represents a tangible opportunity cost.
- Security vulnerabilities: As systems age, underlying codebases may need regular updates to avoid cyber risks. Some vendors are less proactive than others, which creates security gaps for financial institutions.
- Compliance risks: Digitization in a general-purpose repository may lessen an institution’s exposure to information loss but offers minimal benefit from a retention standpoint. In some cases, retention may be even more difficult than before.
- Undesirable user experience: Knowledge workers at banks and credit unions need quick access to information. Inconsistent naming conventions, deeply nested folders, and unreliable search functionality cause frustration and inhibit productivity.
- Delayed innovation: Building content-related integrations is practically impossible when information lives in siloed systems that lack adequate development capabilities.
- Scalability issues: Financial institutions are in the business of serving customers or members while continually acquiring new accounts, loans, and relationships. ECM systems that cannot keep pace with current demand are unlikely to align with future requirements.
ECM Modernization & Financial Institutions
Modernization involves more than just a “lift and shift” from one ECM system to another. To achieve true business value and advance in imaging maturity, banks and credit unions should view modernization from multiple perspectives.
- Business strategy: Prior to making any technological decisions, financial institutions should spend time evaluating how an ECM fits into the bigger picture. In addition to reducing reliance on paper, it may be wise to explore how modernization could improve lending, reduce audit costs, and mitigate risk.
- Software: Clearly, selecting and implementing the right software is a key step for most ECM modernization projects. Not sure where to start? Download a free ECM platform evaluation checklist or explore our ECM software for banks and credit unions.
- Infrastructure: Is your existing IT infrastructure properly equipped to support modern ECM technology? Where does your cloud strategy fit in—and how does it impact decisions about ECM modernization?
- Operational processes: Last, but not least, banks and credit unions must also carefully examine the relationship between operations and content management. Modernization implies change, which can be a good thing. That said, staff may be hesitant to embrace new systems despite the long-term benefits.
Access Alogent’s ECM glossary for bankers or browse additional banking definitions.
Download Now: Where Does Your Financial Institution Fall on the ECM Maturity Curve?
