With credit document imaging, financial institutions leverage technology to scan, save, and organize information that pertains to borrowers.
In general, credit documents are those documents that pertain specifically to the borrower (not the loan). Financial institutions rely on credit documents to provide information about the customer and establish the customer’s creditworthiness.
Credit exceptions occur when a bank or credit union expects to have certain credit-related documents but does not.
A credit file is the collection of borrower information and documentation a bank or credit union uses to evaluate and monitor a business’s creditworthiness. It typically serves as the financial institution’s ongoing record of the borrower’s financial condition and credit relationship.
Cross collateralization occurs when a borrower utilizes the same asset to secure multiple loans.
Customer Due Diligence (CDD) is the ongoing process banks and credit unions use to understand a customer’s identity, ownership structure, business purpose, and risk profile throughout the life of the relationship.
In banking, the term “customer financials” is commonly used to encompass a variety of documents that are utilized to determine the creditworthiness of a borrower. Banks utilize data from the customer financial statements to make prudent decisions and avoid unnecessary risk during the lending process.
Customer Identification Program (CIP) is the set of required procedures banks and credit unions use to verify the identity of customers at account opening.
A CRM is a technology solution that helps banks and credit unions centralize customer and member information, track interactions across channels, manage sales and service activities, and deliver more personalized experiences that improve retention, growth, and operational efficiency.
Financial institutions use the phrase “Day 1 processing” to describe the time period when a check enters the payment stream for settlement. Banks and credit unions must implement reliable and efficient Day 1 processing workflows to ensure streamlined operations and avoid costly oversights.
Financial institutions use “Day 2 processing” to describe the identification and handling of checks with exceptions. Not all checks require Day 2 processing. In fact, the vast majority of checks are processed without exception.
“Day Zero” refers to the closest moment to when Day 1 processing begins.