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.

Professional bank and credit union couriers are used to move documents—and sometimes cash—between a financial institution’s locations, often from a branch to its main facility. As banks and credit unions transition increasingly toward integrated online banking systems, however, the need for professional bank couriers has decreased.

Why are Professional Bank Couriers Needed?

Professional bank couriers have played an important role in the finance industry for many years. A bank or credit union with a centralized system might utilize a courier company to collect checks, deposits, and cash from branches and deliver them to the main facility for processing. Other bank couriers transfer documents from one location to another or occasionally retrieve archived boxes of documents from storage when subpoenaed records must be supplied.

Transition from Professional Bank Couriers to Digital Systems

Within the last several decades, many financial institutions have switched to electronic recordkeeping systems, reducing the need for—and added cost of—professional bank couriers. This is especially notable in the case of loan departments. Before the introduction of electronic systems, loan documents would be generated at a bank or credit union’s main location and then couriered to the appropriate branch for signatures at closing. Often these completed documents would be couriered back to the main branch for filing.

Digital banking systems have dramatically reduced the need for traditional courier functions. Loan documents can now be printed at a branch location, signed, scanned, and uploaded to a central document tracking system. Documents that are eSigned eliminate the need for paper altogether. Electronic documents can then be accessed from any secured, connected terminal within the bank’s network. The only items couriered may be a very few original, wet-signature documents (such as certain loan documents that must be retained in hard copy format for legal purposes).

Back-Office Uses of Couriers

Banks and credit unions also use couriers to route documents for internal use. For example, a financial institution might use couriers to deliver human resource documents between a main facility and branches. Couriers can also bring invoices from an institution’s branches to its accounts payable department at the main office.

Of course, as with customer-facing documents, electronic document management technology has reduced the need for couriers here, too.

Drawbacks of Professional Bank Couriers

Although professional bank couriers fulfill an essential role in the banking industry, overreliance on couriers comes with several drawbacks:

  1. Cost: Couriers usually charge a per-mile or per-job rate, which can add up for banks and credit unions with large geographic footprints.
  2. Time: Couriers can only move documents as quickly as the trip allows. Internal stakeholders must wait until the documents arrive before completing their work.
  3. Risk of Information Loss: Whenever a document is physically moved from one location to another, the human-error element is introduced, and the chance of the paperwork being damaged, lost, or misfiled multiplies.

Given these drawbacks, a growing number of banks and credit unions are re-investing their courier expenses into modern document imaging solutions. Simply put, the more an institution uses an electronic document system, the less paper is generated. This reduces the need for couriers, their associated expense, and risk of error.

Document Management Resources

For more information about document management, be sure to check out our extensive resource library with free document tracking spreadsheets, whitepapers, and eBooks.

Looking for more banking definitions? Check out our banking definitions page.
 

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

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

Tuesday 26 March 2024

Check Fraud: Common Examples and How to Stay Ahead of the Fraudsters

Check fraud is the most prevalent type of fraud at financial institutions, costing billions of dollars in losses annually, while impacting millions of account holders…

Read the Blog