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.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
ACH (Automated Clearing House) is an electronic payment network that enables banks, credit unions, businesses, and consumers to securely send and receive funds between accounts for transactions such as direct deposit, bill payments, recurring payments, and account transfers.
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.
Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, make decisions, and take action to achieve specific goals with limited human intervention.
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.

Information Lifecycle Management (ILM) 

Information Lifecycle Management (ILM) for financial institutions, such as banks and credit unions, is a strategic approach to managing data that encompasses the entire lifecycle of information, from its creation to its eventual disposition. In this context, the lifecycle typically includes several key phases: 

  • Creation and Acquisition: 

    Data is generated through various channels such as customer transactions, account openings, loan applications, and internal operations. It can also be acquired through external sources like market data providers or regulatory bodies. 

  • Classification and Categorization: 

    Upon creation, data is classified based on its sensitivity, regulatory requirements, and business value. For instance, personally identifiable information (PII) or financial records may require higher levels of protection and longer retention periods compared to transactional data. 

  • Usage and Access: 

    During its active use, data is accessed and utilized by authorized personnel for various purposes including customer service, financial reporting, risk management, and compliance monitoring. Access controls and encryption are often implemented to safeguard sensitive data from unauthorized access or breaches. 

  • Storage and Archiving: 

    As data ages or becomes less frequently accessed, it transitions from primary storage to secondary storage or archival systems. This transition optimizes storage resources and ensures that data remains accessible for compliance, historical analysis, or legal purposes. 

  • Retention and Disposal: 

    Financial institutions must adhere to regulatory requirements regarding data retention periods. Data that reaches the end of its retention period or is no longer needed for business purposes undergoes secure disposal or archival. This process involves using data destruction methods that ensure information cannot be reconstructed or accessed inappropriately. 

  • Compliance and Risk Management:

    Throughout the information lifecycle, financial institutions must maintain compliance with industry regulations such as GDPR, CCPA, HIPAA, and financial regulations like GLBA and PCI-DSS. Compliance entails not only adhering to data protection and retention requirements but also demonstrating accountability in data handling practices to mitigate risks of data breaches or non-compliance penalties. 

Information lifecycle management in financial institutions is crucial not only for managing operational efficiencies and reducing storage costs but also for protecting sensitive customer information and maintaining trust with stakeholders. By implementing comprehensive data governance frameworks and leveraging technology solutions like data encryption, automated data classification, and secure cloud storage, banks and credit unions can effectively manage their information assets throughout their entire lifecycle. This approach not only supports regulatory compliance but also enhances data security and operational resilience in an increasingly digital and interconnected financial landscape.

Learn how Alogent's process automation solutions, FASTdocs and AccuAccount, optimize your document and information management, supporting a robust information lifecycle management strategy. 

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