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.
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.
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.
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.

New Account Onboarding

New account onboarding involves completely and correctly entering all pertinent details of a deposit or loan account into the core banking system. Depending on the bank or credit union, this process might be performed manually by document preparation staff members or by boarding clerks. Other financial institutions may employ an interface that automatically transfers data from the loan or deposit system directly to the core.

For a deposit account, the information may include:

  • type of account
  • statement cycle
  • account owner name(s)
  • interest rate
  • service charges

For a loan account, the information may include:

  • loan terms
  • parties associated with the loan
  • interest rate
  • interest type (fixed or variable)
  • payment terms
  • collateral pledged on the loan

Quality Control for New Account Onboarding

After information is entered into the core banking system, the new account typically goes through a process of quality control (QC). All the data points should be double-checked for accuracy. This is also known as a “check back.”

Imaging and New Account Onboarding

In addition to entering the specific details of a new deposit or loan account into the core, account onboarding typically involves a number of document management tasks as well. For example, deposit accounts typically require the creation of a signature card. In addition, a file containing all the account documents is also created. Different accounts require different documents, which creates complexity for the bank or credit union. Scanning deposit and loan documents using an imaging system (such as AccuAccount) and storing them electronically can simplify the document management process, especially when the imaging system provides built-in exception tracking capabilities. This approach also allows financial institutions to easily locate and view documents and decreases the need for physical storage.

Tracking New Loan Account Exceptions

Onboarding one new account can create significant administrative work for back-office staff, especially for complex commercial loans. Ensuring proper documentation in the new account’s file is a key step to ensuring compliance and minimizing exceptions. Example tasks for a new loan might include:

  • recording a deed of trust
  • filing a UCC financing statement
  • verifying insurance
  • informing an insurance agent of a property lien

Welcoming New Accounts

Part of new account onboarding may also entail the generation of a welcome letter that is sent to the account holder. On the deposit side, enclosures might include temporary checks or debit cards, while letters for new loans might include payment books. Banks and credit unions sometimes use welcome letters as an opportunity to promote additional products in which customers may be interested. Welcome letters also serve as an additional address verification check.

Account Management Resources

For more information on account management in the banking industry, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.


Explore more resources

Remote Deposit Capture (RDC) eBook

Remote deposit capture (RDC) ranks as a significant feature of modern banking. In fact, a San Global Research industry report projects the RDC market to grow at a compounded rate of 5.8% through 2032. As the banking industry continues its digital...
Read More »

AccuAccount: Solution Overview Brochure

Track and manage every loan document in one system and streamline loan management from application through servicing with our core-integrated software platform. From loan application automation, to drag-and-drop document imaging, to document tracking, and five...
Read More »

Related articles

Wednesday 29 May 2024

The Importance of Account Holder Education: Best Practices that will Keep Digital Banking Users and Your Institution Safe from Fraudsters

Financial institutions often hesitate to enforce complex password requirements and regular password changes in their security policies due to concerns about inconvenience, which could lead…

Read the Blog

Tuesday 21 May 2024

Is Inefficient Loan File Management Costing You $100K+ Per Year?

Change often comes with a cost. For financial institutions looking to improve their existing loan file management workflows, this cost may involve acquiring software, implementing…

Read the Blog

Monday 13 May 2024

Unraveling the Complexity: How ECM/EIM Solutions Tackle Information Chaos

In today's digital age, data is often hailed as the new currency. However, this surge in data production has given rise to a new challenge…

Read the Blog

Thursday 9 May 2024

Beyond the Screen: The Value of In-Branch Banking for Young Consumers

Is in-branch banking regaining popularity? Bank and credit union leaders should not count the branch out just yet. In fact, some of the largest institutions…

Read the Blog

Tuesday 30 April 2024

Loan Management & Exception Tracking: Quickly Summarize Exceptions by Officer, Branch, or Category

Banks and credit unions need accurate, reliable, and easy-to-understand exception reports. However, pulling exception data together can involve considerable administrative work for back-office staff. Financial…

Read the Blog

Wednesday 17 April 2024

Why Should Credit Analysts Use AccuAccount?

Credit analysts need reliable access to credit documentation in order to do their jobs well, including account holder financial health data. Although it is frequently…

Read the Blog

Tuesday 9 April 2024

Advocating for Streamlined Document Management at Your Financial Institution

Implementing a system like AccuAccount can enable numerous efficiencies for commercial lending teams. Expedited access to loan documents, reduced paper, enhanced exception management and reporting…

Read the Blog

Monday 1 April 2024

[Playbook] Loan Management: Efficiently Manage Notices

Although notices serve as an essential form of communication with account holders, managing notices can involve considerable administrative work for loan assistants, insurance clerks, and…

Read the Blog