Document Exceptions
Financial institutions must efficiently collect, organize, retain, and discard a large volume and variety of documents. It’s therefore no surprise that many exceptions in banking involve document-related issues, such as expiring and missing documents. Missing signatures, scanning oversights, and lack of adequate quality control can cause document exceptions, too.
Banking and Document Exceptions
Document exceptions are commonly linked to the following situations:
- Expiring (or Expired) Documents, such as insurance documents, UCC filing records, inventory records, or certificates of good standing.
- Missing Documents, such as an uncollected tax return for a customer or member.
- Trailing Documents, such as a car title that still needs to be obtained after a loan’s consummation date.
- Incomplete Information, such as a scanned-in loan agreement that contains missing pages or signatures.
Proactively Managing Document Exceptions
To reduce risk and ensure efficiency, banks and credit unions should proactively identify and resolve document exceptions.
- Tracking Existing Exceptions: Being able to quickly generate reliable exception reports provides an actionable snapshot of document-related issues.
- Anticipating Upcoming Exceptions: Waiting until a document has expired isn’t the best strategy, especially for UCC filing records or other critical items. Financial institutions should adopt processes to surface upcoming exceptions, making it easier to stay ahead of undesirable situations.
- Clearing Exceptions: Saving a missing document in a paper loan file technically satisfies an exception, but failing to update a tracking spreadsheet or tickler could lead to confusion. Ideally, the financial institution’s imaging and exception tracking workflows should be unified within one system to reduce oversights.
- Ensuring Quality Control: Just because a borrower provides a document doesn’t mean that it will meet the financial institution’s requirements. Saving the right information in the right place depends on rigorous quality control practices.
Software for Document Exceptions
Many financial institutions start by tracking exceptions in spreadsheets. However, some prefer utilizing software from their core or a specialized vendor. For example, our AccuAccount solution is optimized for commercial lending and offers built-in exception tracking and reporting. Get exception reports in your inbox, stay ahead of issues with lead times (aka “grace periods”), manage imaging and tracking in one system, and enhance your document quality control workflow with AccuAccount.
Access Alogent’s Innovation Hub for free eBooks, videos, and resources for bankers.
