Digital Pen and Paper
Adopting Innovation to Differentiate
the Indian Banking Customer Experience
Point of View
Digital pen and paper provides a cost-effective
way for traditional paper processes to enter the
digital world.
Making it’s mark
Digital pen and paper technology combines the
portability and social acceptance of traditional pen and
paper with a computer’s ability to store, share, and act
upon the information collected.
This technology innovation, while harnessing
process efficiencies, empowers banks to manage
the key business imperative – Customer Experience.
In India banks still rely heavily on
pen and paper. This is driven by
regulations and also by related issues
on cost of automation, varying level of
technology infrastructure across the
country, and the associated training
and change management. In the
current pen and paper process
therefore, handling forms, data capture
and ensuring data validity often slows
down essential processes and
generates costly bottlenecks. And at a
minimum, data is captured twice – on
paper and then re-entered into the
backend system, leading to additional
processing time and possibility of
manual errors.
The Digital Pen & Paper solution
provides banks an opportunity to
adopt a simple technology enabler
and streamline their existing pen and
paper processes. The inherent advantages
of this solution lies in the fact that it
is simple to implement, has minimal
operating costs, leverages the large
mobile infrastructure in the country,
uses common tools and is simple for
users to be acquainted with the
technology as no training is required.
At present times banks in India are
highly focused on innovative and
differentiated customer experience
for achieving High Performance.
Findings from Accenture’s Indian
Banking Customer Experience Survey
2010 reveal that quality of service (no
errors made) and speed of service (no
or less waiting time) are top priorities
for Indian banking customers.
Digital pen and paper which is
increasingly being adopted globally,
directly influences these two levers of
customer experience. One of the key
areas impacted is the foremost
relationship building activity, i.e.
account opening. The solution can
play a key role in streamlining the
current sourcing process – either in or
away from the branch – thereby
ensuring differentiated customer
experience. The solution has a digital
scanner with mobile phone
integration to effectively fulfill the
customer sourcing operations in the
field by relationship managers, i.e. by
feet on street. In case of customers
walking into the branch for account
opening, the digital pen and paper
can substantially reduce serving time
while improving the quality of service.
This technology can also be leveraged
for teller operations, such as cash
deposit slip, and service request forms.
Harnessing process efficiencies
through technology innovation can
thus enable banks to attain significant
competitive advantage in serving the
customer. The solution provides a
cost-effective way for traditional
paper processes to enter the digital
world by fusing the traditional means
of information-gathering with
electronic communications.
Accenture Technology Labs, the
technology research and development
organization within Accenture, has
developed in-depth experience of this
technology and believes that it can
make a radical difference at the bank.
The digital pen and paper is a key
component of Accenture’s Next
Generation Branch offering.
Digital pens are used like ordinary
pens – only they are embedded with
processor, infrared camera, memory
etc. capable of storing time-stamped
content. Users write on paper printed
with a faint irregular pattern of dots
similar to map coordinates, enabling
the pen to know which form is being
used, what is being written, where on
the form and when. For increased
security, each pen has a unique identifier
allowing all information recorded by
it to be traced back to the source. The
data stored in the pen is transmitted
through a computer or a Bluetooth
mobile phone to a central server for
storage, further processing and analysis,
or transmission to colleagues.
This technology is especially relevant
in situations requiring significant
amount of forms processing, and
when information such as signatures
and figures needs to be collected
(such as account opening and service
request forms) or a paper-based item
(such as a receipt) is provided – either
in or away from the branch. Digital
pen and paper technology can be easily
introduced to users who are unfamiliar
with or wary of new technologies.
Making ‘Customer-centricity’
cost efficient
Banks today are operating in a world
that is vastly different from just a few
years ago. Customer expectations too
have changed dramatically, with
increasingly high service levels and
speed being the stakes that could
make or break a bank’s relationship
with the customer.
Since access to customers is limited
within the branch and outside, banks
must view all interactions as being
high ‘relationship’ value. The relationship
manager of the bank is usually the
initial touch point for the customer.
Customer on-boarding is the first and
most critical step in ensuring a
satisfied and valuable client
relationship. However the concept of
once-only data capture at product
origination is still elusive for many
banks as revisits to complete/ validate
data are commonplace.
Today banks need to maximize their
interaction with the customer and
arrive at faster decisions based on
customer data and internal metrics.
The customer who has many options
today is looking for instant feedback
on his/her request.
Benefits of using the Digital Pen and Paper – Account Opening Illustration
Frequently Asked Questions
Pen and Paper
How does the solution work?
Digital Pen and Paper
Process Flow using the Digital Pen and Paper Solution
Customer Experience
Long processing and end-to-end
turnaround time on account opening
Bank agent re-visits customer for Knowyour-customer (KYC) documentation due
to incomplete data or error on forms
80% + reduction in account opening time
Real-time data validation and processing
drastically reduces customer revisits
Eliminates data losses as data transmission
is always kept under control
Company location
1
USB
2a
http
Customer Experience
3
Digital pen and
paper server
Bluetooth
Digital Pen
and paper
Efficiency
Re-entry of data in CPCs (inhouse/outsourced) into backend systems
Lost sales opportunities and reduced
employee attention to revenue-generating
activities
25 – 30% of back-office staff optimized by
eliminating data re-entry in CPCs
Increases productivity, brings to high speed
of execution and refocuses revenue-generating
sales activites
Cost
Cost
Excess human capital performing non-value
added tasks which could otherwise be digitized
70-80% of data entry and archiving costs saved
Bluetooth connection
between pen and phone
2b
3
Bluetooth
3
Digital
scanner
2c
Bluethooth connection
between Pen and PC
XML file
5
PDF file
CRM system
GSM
http
Efficiency
4
Accenture
Mobility
Operated
Services
Digital archive
on document
managemant
system
GSM
Backend System
1 The digitized paper form is filled by
the relationship manager/
customer using digital pen KYC
documents/photographs can be
scanned through digital scanner or
captured using mobile camera
2 Data captured on digital pen is
transferred through an intermediate
mobile or laptop device– through
A case in point is a relationship
manager visiting an existing customer
for mortgage/credit related offerings.
The customer can fill the form with
digital pen and the data is instantly
transferred to a backend system.
Based on automated and integrated
core systems the initial qualification
can be done to generate credit score
(or through integrated automated
solutions) and share this information
through mobile channel with the
relationship manager. Based on this
important feedback, the relationship
manager can work with the customer
for an optimal solution and also
enable faster on boarding. This can
later also be leveraged for cross-sell
when it is integrated with the backend
Customer Relationship Management
(CRM) system.
Similarly, many banks face the challenge
of translating physical information
into system information. Rather, the
problem arises when backend data
entry operators do not capture all
content from the customer’s physical
form, or capture it incorrectly, into
the system. Through digital pen usage,
such a scenario will not arise as all
physical form data is instantly converted
and stored in the backend system.
Using the digital pen and paper solution,
the typical dissatisfaction factors for
the customer of long waiting times
and revisits for data validation are
addressed, and the relationship manager
is able to better focus efforts on
revenue-generating activities. Making
the ‘Paper-ridden’ process efficient
There are doubts as to whether a
bank can truly be paperless. Processes
are paper-ridden, and the branch
channel continues to be plagued by
inefficiencies leading to higher
turnaround time, increased overheads
and customer satisfaction challenges.
Today banks have centralized many
core operations in Centralised
Processing Centres (CPC) from branches.
Still parts of the processes remain
manual and dependent on multiple
handoffs. Expensive human resources
are spending an exorbitant amount of
time on manual tasks like routing
account opening paperwork on the
field, revisiting customers for error
rectifications in account opening
forms and then there is large scale
duplicate data entry in CPCs leading
to further cost overheads.
Using the digital pen and paper solution,
the data entry tasks are eliminated
and back-office staff time is optimized.
The solution can be adapted to
banks existing flow seamlessly, and
is not a difficult proposition to manage.
While the benefits of electronic processes
may not alleviate all of the pains, the
time and cost efficiencies realized can
help banks maximize returns from
each customer interaction.
The solution works on advanced Hand
Writing Recognition (HWR) that has
high conversion accuracy. Key points
that differentiate the digital pen and
paper technology include –
?
Complete solution for simultaneous
capture of customer data/ signature and
KYC documents including photographs
?
Data transmission is encrypted
?
Data can be electronically signed
by the relationship manager if
required by the bank’s internal policies
?
The form is automatically scanned
for archival needs
?
The form traceability is enforced
(each pen is identified, each
activity is timed)
?
Solution supports any storage
type: xls, csv, relational DB, etc.
?
The solution supports different
data sending methods (Bluetooth,
USB,GPRS/UMTS connection)
?
The solution has multiple validations
built-in and is integrated for
SMS/Fax/FTP/Web services delivery.
USB/bluetooth onto a laptop if at a
branch, or sent to phone via
Bluetooth, if in the field, by checking
the “pidget” on the paper
4 Validation of digitized data is done
on the backend platform and an
XML and/or PDF file version of the
form is created
3 Digital Pen Router runs in
background on the mobile phone
and transmits all the data received
from the pen/scanner to backend
web platform via secured https
5 Post acceptance, the XML and/or
PDF file is sent to the bank`s core
systems/archival system
How secure and reliable is it?
pre-set time). Once the remaining
data is filled in, the solution will
directly integrate the new data with
previously-stored data.
The digital pen is secure and is
securely coupled with a specific
mobile phone. Once the data has
moved to the mobile, the pen memory
is automatically erased. Data
transmission is encrypted and
happens over https for which a
complete audit trail is maintained. In
terms of data conversion accuracy, the
Hand Writing Recognition analyses
each pen stroke and identifies
patterns, then places the character.
Results from a pilot project show that
HWR can reach more than 90%
conversion accuracy. Since HWR is
based on pen strokes instead of the
entire object, it is far more accurate
than Optical Character Recognition.
Moreover, the solution ensures that
customer’s signature is the actual
image captured and cannot be
altered.
Can it support data entry in
draft stage?
Yes, the user can part-fill a form and
store the data under draft stage (for a
What are its running overheads?
The digital pen is rechargeable and its
ink is refillable. The paper used with
the digital pen is normal paper,
printed with a specific pattern.
Which phones/platforms does
it run on?
Accenture Digital Pen Router is a
simple J2ME based application
running on Nokia Smart Phones. A
wide range of mobile platforms are
supported: Symbian, Android and
Blackberry.
Starting with a comprehensive blueprint of existing
processes, the Accenture approach can help reveal
duplication and align strategy, business processes
and IT infrastructure on a wide scale.
Authors
Sanjay Tugnait, Managing Partner,
Financial Services, Accenture India,
Tel: +91 9920166700,
sanjay.tugnait@accenture.com
Mudeita Patrao, Lead Banking and
Capital Markets, Financial Services,
Accenture India, Tel: +91 98 2030
5179,
mudeita.patrao@accenture.com
Rajdeep Saha, Manager Financial
Services, Accenture India, Tel: +91
9769053527,
rajdeep.saha@accenture.com
Madhu Vazirani, Research Lead AsiaPacific Financial Services, Growth &
Strategy, Accenture, Tel: +91
9845817917,
madhu.vazirani@accenture.com
How can Accenture help?
Today banks must achieve the dual
objective of customer centricity and
process efficiency. Digitization holds
the key to simultaneously improving
customer experience and efficiencies.
However managing the interdependencies
between the business processes, the
customer touch points and back-end
systems can be deterring for the bank.
Accenture is helping banks to
understand these dependencies and
make smart decisions in automating
their processes.
Accenture’s Next Generation Branch
offering has many other innovations
which provide significant competitive
edge for the bank which chooses to
differentiate customer experience for
achieving High Performance.
The Digital Pen and Paper
can be demonstrated at
the Accenture Technology
Labs center in Bangalore
or offsite at a location of
your choice
Disclaimer
This Report has been published for
information and illustrative purposes
only and is not intended to serve as
advice of any nature whatsoever. The
information contained and the
references made in this Report is in
good faith, neither Accenture nor any
of its directors, agents or employees
give any warranty of accuracy nor
accepts any liability as a result of
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does not warrant or solicit any kind of
act or omission based on this Report.
Accenture’s role is to integrate the
respective components of the digital
pen and paper solution, implement,
customize, support and manage this
offering as a service and any reference
to the product coincidental.
About Accenture Technology Labs
Accenture Technology Labs, the
technology research and development
(R&D) organization within Accenture,
has turned technology innovation
into business results for over 20 years.
The Labs create a vision of how
technology will shape the future and
invent the next wave of cutting-edge
business solutions. Working closely
with Accenture's global network of
specialists, Accenture Technology Labs
helps clients innovate for competitive
advantage. Labs are located in the
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information, please visit our website
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