A financial institution’s Vice President of Credit Administration is focused on the creditworthiness of its commercial borrowers. At smaller banks and credit unions, a VP of Credit Admin’s responsibilities may be performed by the VP of Loan Administration. However, these roles are often split into distinct job titles as a financial institution grows its commercial portfolio.
Responsibilities of a VP of Credit Admin
The VP of Credit Admin’s responsibilities vary depending on the financial institution but generally include:
Managing Commercial Covenants: Commercial loans include covenants that bind both the borrower and the financial institution to specific terms. Covenants can be positive (i.e., allowing or requiring certain actions) or negative (i.e., prohibiting certain actions) and often pertain to the borrower’s creditworthiness.
For example, one business owner may be required to provide annual tax returns and quarterly accounts receivable statements. For a different business owner, the financial institution may need to pull updated credit reports bi-annually. Requirements vary depending on the relationship, which poses tracking challenges for the VP of Credit Admin’s team—especially with high-growth commercial portfolios.
Supporting Underwriting: Commercial underwriting teams rely on timely, accurate information to make informed decisions. The VP of Credit Admin is ultimately responsible for identifying the necessary documentation and data, ensuring it has been collected from the borrower, organizing information in an intuitive way, and sharing it with analysts and decision-makers.
Overseeing Credit Admin Operations: Credit admin teams usually consist of one or more credit administrators, who handle the day-to-day aspects of exception tracking, document management, and internal coordination. The VP of Credit Admin manages this team, hires new staff, develops processes, identifies technology requirements, and works to achieve departmental success.
Challenges for a VP of Credit Admin
Ineffective tracking can be a major inhibitor of commercial credit administration. With so many covenants and commercial relationships to manage, continued reliance on manual workflows leads to operational inefficiencies and credit file gaps. Maintaining credit and loan documentation in separate systems creates additional complexity, especially during audits and exams. All of this makes it harder for the VP of Credit Admin to understand borrower creditworthiness.
Implementing the right technology can alleviate multiple credit admin challenges. Alogent’s ECM software, AccuAccount, was built for the needs of commercial relationships. Staff can easily access credit, loan, and borrower information from a single system. Prebuilt and customizable exception reports keep credit teams, lenders, and management informed with less effort. Point-and-click audit prep saves time and supports healthier interactions with auditors. Alogent Document Portal streamlines document collection from borrowers.
Contact Alogent to discuss our software for credit administration.
