Using document imaging software to organize and streamline data management is a great choice for many in the financial services sector, but it can also help firms with industry compliance. This will become increasingly important within the next several years, as a recent survey completed by information management company EDM indicates that fines for poor information management are likely to increase over the next five years.
Reporting on the survey's findings, The Actuary Magazine stated that many professionals in the financial services field believe that there will be a rise in both the number and size of fines for poor information management and storage. Of the advisors surveyed, 22 percent anticipate a significant increase in fines, while 59 percent are expecting just a slight increase. Only 4 percent of those surveyed said they thought sanctions would decrease. EDM chief executive Sam Ferguson said that organizations in financial services will need to make drastic changes to avoid being penalized.
"Our findings are alarming," The Actuary quoted Ferguson as saying. "Competition in the financial services sector is increasing and customers are becoming more demanding. In meeting this challenge, financial services companies have to cope with a huge increase in the volume of information they receive."
According to the Financial Times Advisor, the banking sector and the mortgage industry are the worst offenders when it comes to managing and storing information. General insurance companies, as well as pension providers and investment firms, were also listed as areas that could use improvement.
Adhering to regulatory guidelines is important, but the good news for these firms is that there's a simple fix. By utilizing a document conversion service, each of these sectors could improve their data management systems while also ensuring that they're doing everything possible to avoid fines and sanctions.
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