Exception Tracking Workflows
To maintain compliance and mitigate risk, banks and credit unions must proactively manage their exceptions. Tracking is a key part of an effective exception management process. The steps involved with tracking exceptions are collectively referred to as an “exception tracking workflow.”
Key Components of an Exception Tracking Workflow
Specific practices may vary among financial institutions, but exception tracking workflows typically include:
- Setting and communicating clear expectations for “the norm,” such as what documents must be present in a loan file or when annual reviews should occur.
- Identifying exceptions, such as a missing signature on a customer application or an expired driver’s license.
- Preparing exception reports to surface accounts, relationships, and situations requiring action.
- Sharing exception reports with relevant stakeholders, such as loan assistants, commercial lenders, and the board of directors.
- Generating and distributing notices that concisely summarize outstanding requirements for account holders.
- Following up with customers, members, and staff to ensure timely completion of past-due tasks.
- Adding documentation and information to source systems, such as scanning a customer’s financial statement into the digital loan file.
- Resolving exceptions to avoid outdated data in the tickler file, spreadsheet, or software.
Working Toward a Better Workflow
Traditionally, financial institutions’ exception tracking workflows have been time-consuming and tedious due to manual processes, leading to operational bottlenecks and unreliable exception reports. Lack of centralization often results in a plurality of tracking methodologies across branches, departments, and teams.
Consolidated tracking in a system like AccuAccount from Alogent encourages healthier exception workflows. AccuAccount was built for the unique needs of financial institutions, offering flexible tracking of credit, loans, collateral, trusts, deposits, and policy exceptions. Document placeholders, expiration dates, and Dynamic Reporting for AccuAccount help bankers increase productivity.
Watch a 28-minute webinar to learn about exception tracking in AccuAccount. View additional resources in Alogent’s Innovation Hub
