Case Study Heritage Banking and

“We now have good statistics provided by the Fuji Xerox Business Centre on what we use in each branch, and what our forecast volumes are, so it allows us to look for paper volume reductions. We’ve achieved reductions because we’ve been able to scan and email documents rather than printing them out and faxing them.” David Johnston, Business Process Manager at Heritage Bank

Banking on a Better Document System

It’s a success story that Challenges: Benefits: resonates with the Australian • Heritage Bank needed to • Improved printing penchant for supporting the move to a new document and copying. underdog. handling system to improve • Faster, easier scanning its internal loan application improves loan application Heritage Bank has long taken on processes. processes. the and won, building • Heritage wanted to improve a large base of loyal customers over • Lower costs and savings many years. With origins that go back productivity for staff so in resources. to 1875, Heritage is now the largest it could deliver a more • Sharing documents with customer owned bank in , and streamlined service to its customers is secure and is still headquartered in , clients. easily performed by email. with branches covering southern • Heritage Bank also wanted . • An entry to development to cut costs by replacing of a digital document ageing machines with Central to Heritage’s success has been management system. multifunction devices. its customer service, but maintaining that advantage has been tested in the past few years by systems that have not kept with technology.

Solution: • Heritage installed an ApeosPort multifunction device in each branch and its head office, with a Fuji Xerox management service for all machines. The Business Challenge “Every branch also had It would be either our facilities team, a printer, and a separate which managed photocopiers and Business process manager at Heritage fax machines, or our IT team, which Bank, David Johnston, explained that photocopier, and some managed printers and dedicated loan application documents were still high volume branches also scanning terminals. In the early 2000s, being sent by fax to a central office for had a dedicated PC with when we went from 20 to 60 branches, scrutiny, creating a dilemma for the bank they were set up with ad hoc device in both lost efficiency and costs incurred. a scanner for scanning purchases,” said David. documents into the “We have 61 branches, with our workflow system” All these devices had to be maintained processing offices in Sydney, Melbourne and fed with consumables, which was and Brisbane, and our head office in — David Johnston, Business Process also done sporadically by each branch. Toowoomba,” explained David. “A typical Manager at Heritage Bank branch had a fax machine with custom “Every branch had to look after its own firmware. We used those fax machines supplies of paper and toner cartridges,” to fax loan documents into our workflow “We had an ageing fleet of all added David. “It wasn’t uncommon for system for processing. Every branch was those devices, and we still couldn’t branches to email each other urgently, doing it, and that was a real problem. scan a document and email it to Fax machines are quite slow, and many a customer. We weren’t meeting asking for particular cartridge types to loan documents could go to 50 or 100 customer expectations, because replace theirs.” pages, so the margin for error through we couldn’t communicate easily a standard fax machine was very high. with them by email. Heritage Bank sought advice Documents were marked with a barcode and went to tender, to rebuild its system for identification.” “The machines were from multiple infrastructure base and transform vendors, so we had multiple support its document processes. But that was not the only problem. contracts. The fleet was also The bank branches had to contend inconsistent, so branches didn’t with multiple machines from numerous have the same machines. When manufacturers, with all of them branches were set up or a device contributing to inefficient practices broke one of two support teams and high running costs. would organise a replacement. The Solution “That workflow system was installed in us in faxing — one cost from faxing 2001. We maintain the same workflow out of a branch and another faxing Proposals were received from numerous system here in head office but we into our 1800 number. “Productivity vendors, most of whom already dealt created a new channel for getting is another benefit. Being able to scan with the bank. In due course, Heritage documents into it using the Fuji Xerox documents saves about $70,000 a Bank decided to accept the proposal machines. We just scan them directly year, and reduced energy costs are from the Fuji Xerox Business Centre in into that system, which is much faster about $10,000 per year.” The change Toowoomba. David pointed out why this than waiting for faxes. “But there are in bank operations did not faze staff proposal stood out from its competitors. also fewer errors, fewer missed pages, at all, according to David. In fact, and the documents are easier to read. it was welcomed by one and all. “It “It was an interesting tender because we So the machines have provided a range was a big change for staff, but it was had several incumbent vendors. There of improvements even though we universally loved,” he recalls. “There were a couple of things about the Fuji haven’t changed our back-end system,” was a pent-up demand for emailing Xerox Business Centre tender. One was he pointed out. documents to customers. And having its professionalism, and the other was the infrastructure now to digitise the quality of the machines, and the Benefit: Improved reliability documents, we can begin to look quality of the service that was proposed. at developing a system for that. It offered a better fleet of better Reliability has been greatly improved, machines, and a better service standard and the time saved by staff has meant ”Heritage Bank customers helped to make changes to the fleet.” large gains in staff productivity. “Given we had two teams of people looking can now expect to enjoy An ApeosPort-IV 4475 or 4430 after the original system, now the Fuji faster service, and offer even multifunction device was installed Xerox Business Centre Toowoomba more competitive products. all 61 branches, and another nine provides a complete management multifunction devices among head service for us. Having one central person In fact, they can bank on it.” office, processing centres and major looking after all of that is saving time.” branch offices. — David Johnston, Business Process Manager at Heritage Bank The Business Centre also initiated a Benefit: Lower operating costs management service for all machines, so that regular maintenance and ongoing The reduction in faxing and smoother consumables supplies are taken care of. operations has meant the bank is saving time and resources, and cutting operating The ApeosPort devices were installed costs. “We now have good statistics over a period of 12 weeks. A couple of provided by the Fuji Xerox Business Centre branches were used as “test branches” on what we use in each branch, and what early, to solve any problems that might our forecast volumes are, so it allows us to arise. Floor space was a problem in a look for paper volume reductions. We’ve few small branches, but a couple of achieved reductions because we’ve been configurations helped to work around able to scan and email documents rather space restrictions. than printing them out and faxing them,” said David. Benefit: Improved document workflow storage and retrieval Benefit: Savings in time and resources The immediate, and most obvious, impact of the new multifunction devices “We also quantified our power was the ability to scan documents requirements in our project business into the devices and to email them to case. We are getting a cheaper cost both processing centres and clients. per page than before from our new The bank’s document workflow system ApeosPort MFDs. In fact, we estimate was retained, but the new devices are we’ll save about $350,000 this year able to scan documents directly into through reduced paper consumption, it. According to David Johnston, the a reduced cost per page from about efficiency dividend in removing the need five cents on average down to about for faxing every document has been two cents per page, and reduced costs nothing short of revolutionary. in faxing. There were two costs to While reasonable endeavours have been used to ensure the information is correct at the time of printing, Fuji Xerox Australia Pty Ltd is not liable for any inaccuracies in the information, in particular that savings targets and benefits achieved by one customer will necessarily be applicable to another. Fuji Xerox Australia would need to perform due diligence of the specific customer circumstances in order to determine the particular savings and benefits that may be achievable in that instance.

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