Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
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.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
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.

With credit document imaging, financial institutions leverage technology to scan, save, and organize information that pertains to borrowers. Credit document imaging has become increasingly important in recent years, especially for understanding complex commercial lending relationships. Credit document imaging can also support consumer lending relationships, although usually to a lesser extent compared to commercial.

Types of Credit Documents to Image

For a consumer relationship, credit document imaging could be as simple as saving the borrower’s driver’s license, pay stub, CIP verification, and a few other documents. Commercial lending relationships, however, often involve hundreds of pages of documentation and a variety of document types. Examples include:

  • Articles of incorporation
  • Certificates of good standing
  • Risk assessment worksheets
  • OFAC documentation
  • Customer information profile (CIP) verifications
  • Borrowing resolutions
  • Form W-9 (Request for Taxpayer ID)
  • Operating agreements
  • Bylaws
  • Account receivable statements
  • Inventory statements
  • Tax returns
  • Corporate financials

Articles of incorporation and other documents may only need to be collected once, while other records must be continually updated based on the borrowed amount and relationship. For example, a common practice is to request quarterly or annual financial statements from commercial borrowers. Tax returns and insurance are usually collected annually. 

Efficient Tracking, Flexible Imaging

As a financial institution expands its commercial loan portfolio, keeping pace with its document management needs can become increasingly complicated. Tracking documents in a spreadsheet or tickler is a common practice for avoiding credit document exceptions, but manual data entry can lead to reporting errors. Offering a convenient way for borrowers to provide information is key for reducing credit exceptions. After all, not every borrower enjoys printing and mailing hard copies.

Implementing a document imaging and tracking system like AccuAccount can simplify credit document management. Prebuilt exception reports, email notices, drag and drop imaging, and flexible scanning solutions support an efficient credit imaging workflow.

Read more definitions or download a free resource from Alogent’s Innovation Hub.

Explore more resources

Alogent Shield+ Datasheet

Check fraud poses a significant challenge for financial institutions, leading to substantial costs and risks for account holders. As fraud tactics continue to evolve, banks and credit unions must be proactive in protecting their assets and maintaining account...
Read More »

Alogent Shield Datasheet

As check fraud becomes increasingly complex and costly for financial institutions, finding a universal solution is more challenging than ever. With rising threats across all deposit channels, no institution is safe—just one successful attack can lead to...
Read More »

Related articles

Wednesday 11 December 2024

Preparing for the Holiday Surge: How Real-Time Check Processing Helps Banks and Credit Unions Combat Fraud and Boost Efficiency

From holiday shopping sprees to end-of-year payments, the winter months bring a rise in transaction volumes and a greater focus on more secure, efficient check…

Read the Blog

Wednesday 4 December 2024

Checks Matter: Why Checks Are Still Essential in a Digital Payment Era

The notion that checks may become obsolete has been a topic of discussion in the banking and financial services industry as digital payments gain popularity…

Read the Blog

Monday 2 December 2024

How Commercial Loan Approval Works in AccuAccount

With AccuApproval for AccuAccount, your bank or credit union can achieve a scalable workflow that aligns with your commercial lending process. It’s a great option…

Read the Blog

Monday 25 November 2024

Digital Banking Series Part 2: Next Steps for Upgrading your Digital Banking Platform

After evaluating the pros and cons of upgrading your financial institution’s digital banking platform, you may find that switching solution providers is the most viable…

Read the Blog

Tuesday 12 November 2024

Q&A Series, Part 1: Navigating Consumer & Business Digital Banking with NXT

Monica Moore, Alogent's CTO, shares her insights into how NXT is setting new standards for digital banking, from enhancing user journeys to integrating dynamic content…

Read the Blog

Monday 28 October 2024

Don’t Get Haunted by Check Fraud this Halloween: Protect Your Deposit Channels with Alogent

Combatting check fraud poses significant challenges, as fraudsters often view checks as outdated and easy targets for sophisticated schemes. While advanced payment technologies can greatly…

Read the Blog

Thursday 24 October 2024

Streamlining Document Management: Key Strategies for Archiving and Retrieval in the Banking Market

Effective document management is crucial for success in the banking sector. Given the rapid increase in both paper and electronic records at financial institutions, it…

Read the Blog

Tuesday 15 October 2024

Q&A Series, Part 2: Unify’s Multi-Channel Capture, Tailored Merchant Solutions, and User-Friendly Interfaces for Tellers

In part 2 of our series, we dive even deeper into Unify, focusing on how it continues to support financial institutions and address the latest…

Read the Blog