The straight-through-processing (STP) solution automates the internal and external channels involved in application processes, such as acquiring loans, government permits and account requests, by requiring transaction entities to maintain standardized formats.
EDS Australia New Zealand Executive Director for Business Process Outsourcing, Phil Heggie, said the Victorian Government and the Lands Registry are implementing the new system.
"Straight-through-processing automates all internal and external processes so customers applications are validated against internal rules and necessary external sources so there is a massive reduction for dependence on staff," Heggie said.
"Workflow, imaging, optical character recognition and scanning are all automated while interoperability with external sources is ensured by the use of common formats. Clients who want to talk to an operator are routed through to a call center which now deals with more technical requests."
EDS Director of Credit Services for Europe, Middle East and Africa Ian Coventry said the system can be used for internal processes without the need for external interoperability.
Coventry said U.K. financial firm Abbey National PLC has had "astounding success" with the system.
"Government and industry will benefit enormously once all the states cooperate to develop this technology," Coventry said
"Many of our clients including Westpac [Banking Corp.] have expressed interest in straight-through-processing, however all these industries will jump on board once it gets off the ground."
Coventry expects the technology to be in full flight by 2009.
Last year, Fujitsu Ltd. Australia launched an STP service for the A$25 billion (US$19.8 billion) insurance market.
By automating the application process, Fujitsu claims insurers can reduce the time it takes to process an application down to 48 hours in most cases.
According to a research paper released by Omgeo LLC, operational risk and compliance is driving the adoption of new technologies, in particular straight through processing (STP).