Why Manual Processes Are Still Costing Banks More Than They Realize 

Posted May 7, 2025

Published by admin

Posted May 7, 2025

In 2025, the persistence of paper-based workflows in banking is more than just a sign of legacy operations—it’s a strategic liability. As digital expectations rise, manual processes continue to drain efficiency, inflate costs, and erode customer trust. 

The Real Cost of Manual Workflows: 

  • On average, banks take 12 days to approve loans manually, compared to 5–6 days with digital processes. 
  • Paper-based onboarding sees drop-off rates as high as 35%, especially among tech-savvy millennial and Gen Z customers. 
  • According to McKinsey, manual processes can cost 30–50% more than digital alternatives in operational spending. 

Customer Experience at Risk: Digital-first customers expect fast, seamless service. Manual workflows lead to: 

  • Delayed approvals and disbursements 
  • Increased customer service requests 
  • Frustration due to redundant document submissions and lack of real-time updates 

Compliance and Operational Risk: Manual documentation increases the chance of: 

  • Lost files and incomplete records 
  • Audit delays and regulatory non-compliance 
  • Slower responses to fraud and risk indicators 

Industry Movement: 

  • In Africa and the Gulf region, mid-tier banks that adopted digital onboarding and claims processing saw a 40% increase in customer satisfaction and up to 85% reduction in paper usage. 
  • Gartner predicts that by 2026, over 70% of customer onboarding in financial institutions will be fully digitized, up from 30% in 2021. 

 

Digital transformation is no longer about gaining a competitive edge—it’s about keeping up. For banks, eliminating paper trails and manual bottlenecks is the fastest way to unlock productivity, improve CX, and future-proof operations. 

 

Visit www.cubicsystems.com or reach us at info@cubicsystems.com to get started. 

How can we help you

By Submitting, you agree to our Terms & Conditions and Privacy Policy.

Ready to Transform Your Business?

Dive into our company profile and explore how Cubic Systems can drive your success with cutting-edge solutions tailored to your needs. Download now and take the first step towards innovation! Dive into our company profile and explore how Cubic Systems can drive your success with cutting-edge solutions tailored to your needs. Download now and take the first step towards innovation!

By Submitting, you agree to our Terms & Conditions and Privacy Policy.