What is Loan Documentation Software?
The term “loan documentation software” could refer to several types of banking software depending on the context. Examples include software for loan document preparation, document collection, and document management.
3 Use Cases for Loan Documentation Software
Specific features vary among technology vendors, but, in our experience, loan documentation software is typically used to simplify one or more of the following scenarios.
Loan document preparation: Modern financial institutions commonly utilize loan origination systems (LOS), which streamline the compliant generation of loan documents. Bankers input loan and borrower-specific details into the LOS, which prepares documentation for the given situation. Documents are then presented to the customer or member for wet signature or e-signature.
Loan document collection: Commercial loans involve considerable amounts of documentation. Banks and credit unions often use portal software to electronically collect tax returns, financial statements, articles of incorporation, proof of insurance, and other borrower-provided documents.
Loan document management: A financial institution may need to manage hundreds of pages of documentation throughout the life of a single loan. Using ECM software to securely digitize, retain, and purge documents supports efficient recordkeeping and compliance. Some ECM systems also offer built-in exception management for enhanced document tracking.
Unlocking Additional Efficiency via Integration
Connecting multiple loan document systems together via API and other integration techniques can unlock additional efficiency.
For example, AccuAccount, Alogent’s ECM that’s optimized for commercial lending, can automatically ingest documents from an LOS—reducing or eliminating manual information movement between systems. Using Alogent Document Portal in tandem with FASTdocs, Alogent’s ECM for enterprise-wide content management, provides an end-to-end solution for information collection and management.
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