What are Deposit Exceptions?
An exception is something that requires attention because it does not meet predefined requirements. In banking, deposit exceptions are those exceptions that pertain to one or more deposit accounts. Deposit exceptions occur due to missing documents, payment-related issues, past-due tasks, and other reasons.
Examples of Deposit Exceptions
Promptly identifying and resolving deposit exceptions is essential for avoiding risk and ensuring smooth experiences for account holders. Examples of deposit exceptions include:
Document exceptions: Deposit accounts involve deposit agreements, signature cards, authorizations, disclosures, statements, and a variety of other documents. Some records, such as driver’s licenses, may require occasional updates depending on the situation. Failing to collect, generate, or share the right document at the right time leads to deposit exceptions.
Payment exceptions: Most transactions occur as intended, but some payments are flagged due to attempted fraud or honest mistakes. Incomplete or invalid routing numbers, illegible characters, and malformed account information are reasons for check-related exceptions.
Task exceptions: Forgetting to take required actions can result in deposit exceptions, too. Onboarding a new deposit account, for example, involves a series of reviews and approvals by various staff members. Failing to complete tasks in a timely manner could cause deposit exceptions and onboarding delays.
Deposit Exception Tracking
In many cases, a financial institution could reasonably expect fewer deposit-related exceptions compared to document-intensive functions like commercial lending. However, careful tracking, reporting, and resolution of deposit exceptions remains an important workflow for financial institutions of all sizes.
Spreadsheets and ad hoc systems are relatively common for exception tracking, but such approaches are difficult to scale across multiple deposit channels, branches, and information environments. Implementing software with built-in exception management capabilities, such as Alogent’s Unify and AccuAccount, may offer a more reliable approach.
Contact Alogent to explore our exception management solutions. Browse additional resources for bankers in Innovation Hub.
