An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account. For consumer deposit accounts, this form is also known as a signature card, which names individuals who are permitted to deposit to an account and write checks from it.

Authorized Signer Forms for Business Accounts

When a business account is established, it is standard practice for the financial institution to ask for the entity’s formation documents, such as articles of incorporation, partnership document, or trust document. This establishes the business owners who are added to the authorized signer form. Other personnel, such as an office manager and accounting or finance staff, can also be added at this time.

In the business world, an authorized signer may have varying privileges. For example, a bookkeeper may be able to sign for company credit card purchases or cut paychecks. Similarly, a finance manager may be authorized to transfer money between specific accounts or make wire transfers. Depending on the size and type of an organization, a variety of functions could be granted to people within a company based on their role or job function.

The Importance of the Authorized Signer Form

Any organization⁠—but particularly one with many moving parts and personnel⁠—relies on the authorized signer form to maintain tight control over staff who can make certain transactions. The authorized signer form clearly defines the tasks that an individual is permitted to initiate within an account. This makes transactions easier to monitor and ensures that only decision-makers are initiating specific functions.

As a result, business owners can rest easier knowing that only trusted staff are permitted to conduct business on the company’s behalf.

Managing Authorized Signer Forms at a Bank or Credit Union

For financial institutions, maintaining authorized signer forms in electronic format is ideal. An electronic copy that is easily accessible enables staff at any branch or location to quickly locate the most current version of the form. Locating documents faster means less wait time for customers and members, which, in turn, yields elevated levels of account holder satisfaction.

In addition, a digital file also offers quicker recall and less elapsed time when replacing previous versions. This is especially important when revoking an employee’s access or privileges. An electronic approach to document indexing enables near real-time management of authorized signers. By contrast, a paper-only approach creates delays and could expose the financial institution (and the account holder) to additional risk.

Document Management Resources

For best practices on managing authorized signer forms and other banking documents, be sure to check out our extensive Innovation Hub with free document tracking spreadsheets, whitepapers, and eBooks.

Looking for more banking definitions? Check out our banking definitions page.

Explore more resources

Exception Tracking Cost Calculator

Exception tracking has many moving parts—from notice generation to recordkeeping and reporting. How much does it cost your financial institution each year? Find out with Alogent’s free calculator.
Read More »

Related articles

Wednesday 27 September 2023

How to Enable Better Experiences for Multiple Stakeholders with Streamlined Document Management

Document management is often considered a “back-office” function that minimally impacts a financial institution’s key business objectives. In reality, streamlined document management can play a…

Learn More »

Tuesday 19 September 2023

From Data to Results: The Role of Personalization in Your Digital Banking Platform

One powerful strategy to enhance the user experience and drive engagement on digital platforms is through built-in contextual marketing. In the world of digital banking…

Learn More »

Wednesday 6 September 2023

[Playbook] Efficiently Managing To-Dos with Task Exceptions

Your financial institution is growing—more branches, more team members, more loan and account holders, and more follow-up. To keep pace with this complexity, you need…

Learn More »

Monday 28 August 2023

Exception Tracking: Is Now the Right Time to Upgrade Your Workflow?

Documentation and follow-up tasks for financial institutions to manage is commonplace—especially for banks and credit unions involved in commercial lending. Proactively tracking missing and expired…

Learn More »

Thursday 17 August 2023

[Playbook] Tracking and Resolving Recurring Document Exceptions

Proactively dealing with missing and expiring documents is a key component of an effective exception management strategy. However, that’s easier said than done when your…

Learn More »

Wednesday 9 August 2023

Six Steps to Maximize Your Financial Institution’s Digital Transformation Journey within the Digital Banking Channel

In today's rapidly evolving digital banking market, digital transformation and the adoption of cutting-edge, scalable solutions has become a necessity for banks and credit unions…

Learn More »

Tuesday 1 August 2023

Check Volumes are Declining, But Check Fraud is Rising: What’s it Costing your Financial Institution?

No financial institution – large or small – is protected from transaction or check fraud. And, the difficult reality for institutions is that fraud can…

Learn More »

Wednesday 26 July 2023

Boost Productivity at your Financial Institution with Enhanced Cold Storage

Cold storage systems can support numerous use cases at banks and credit unions. The phrase “cold storage” can be used to describe technology that manages…

Learn More »