Slowing Down Success: The Detrimental Effects of Paper and Post Processes in Financial Services

April 1, 2024
minutes read

The financial services industry has long struggled with inefficiencies stemming from outdated communication channels. In our previous blog series, we delved into the use of the phone in financial services, highlighting how it contributes to customer frustration, diminished experiences, and decreased staff productivity.

Adding to these challenges is the use of paper and post. Despite advancements in digital technology, many financial services firms still heavily depend on physical documents and traditional mail delivery. In this blog, we'll explore how continuing to use these channels results in lengthy processes and delays, leading to inefficiencies and eroding customer trust. 

Lengthy Onboarding Processes 

In the banking sector, crafting a positive customer experience relies on making a favourable first impression, particularly during the onboarding process. Traditionally, this involves customers completing numerous paper forms and signatures, which can burden onboarding teams and test the patience of customers. 

Customers often face a barrage of paper forms and documents to fill out, covering various aspects such as personal information, identification verification, and account preferences. Each form requires careful attention and meticulous completion, adding to the overall duration of the onboarding process. Moreover, the need for physical signatures further complicates matters, as customers may need to visit branches or engage in postal services to fulfil these requirements, resulting in additional time and effort expended. 

Transaction Processing and Huge Delays

Paper-based transactions often take significantly longer to process compared to digital transactions. Documents must be printed, signed, mailed, received, and manually entered into systems, leading to delays in completing transactions. This delay can be especially problematic for time-sensitive transactions such as loan approvals or fund transfers, potentially resulting in missed opportunities or frustrated clients. 

The Impact on Internal Operations 

The ripple effect of these delays presents significant operational hurdles within financial institutions. Lengthy processing times create bottlenecks, making it increasingly difficult for staff to meet deadlines and maintain productivity levels. Moreover, the risk of errors and the need to re-request information that goes missing in the post is exceptionally high. Consequently, as a result of these delays, employees face heightened levels of stress and frustration. This, in turn, undermines the firm's ability to maintain professionalism and operate effectively.

Customer Dissatisfaction: Erosion of Trust

As we have already touched on, delays and prolonged processing times contribute to the erosion of customer trust and confidence. Faced with slow and inefficient processes, customers may question the institution's competence and reliability, leading to frustration, and worse still, customer churn as customers seek alternatives, ultimately impacting the institution's bottom line.

Embracing Digital Transformation: Moving Beyond Paper and Post

To overcome the challenges posed by paper and post processes, financial institutions must embrace digital transformation and harness innovative technologies. By shifting away from reliance on physical documents and traditional mail delivery, institutions can streamline workflows, enhance efficiency, and improve the overall customer experience. 

Verified Identity Messaging by Nivo – The Alternative to Paper and Post

One digital banking platform that is transforming document management in financial services is Verified Identity Messaging (VIM) by Nivo. This innovative platform offers a seamless alternative to traditional paper and post processes, streamlining document submission and verification in a secure and efficient manner.

With Nivo's VIM platform, customers can easily submit documents to their bank or lender with just a few taps on their smartphone. The platform combines the speed and convenience of popular messaging apps like WhatsApp with the security and compliance standards required by financial institutions.


In conclusion, the heavy reliance on paper and post processes in financial services represents a significant barrier to efficiency and customer satisfaction. These outdated methods introduce delays, bottlenecks, and operational challenges that hinder the smooth flow of transactions and erode trust with customers. 

To overcome these challenges, financial institutions must adopt innovative technologies. Platforms like Verified Identity Messaging by Nivo offer a modern alternative, streamlining everyday tasks and enhancing the overall customer experience. By moving beyond paper and post processes, financial institutions can accelerate workflows, reduce costs, and position themselves for success in an increasingly digital landscape.

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