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.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
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.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
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.

Document Exceptions

Financial institutions must efficiently collect, organize, retain, and discard a large volume and variety of documents. It’s therefore no surprise that many exceptions in banking involve document-related issues, such as expiring and missing documents. Missing signatures, scanning oversights, and lack of adequate quality control can cause document exceptions, too.

Banking and Document Exceptions

Document exceptions are commonly linked to the following situations:

  • Expiring (or Expired) Documents, such as insurance documents, UCC filing records, inventory records, or certificates of good standing.
  • Missing Documents, such as an uncollected tax return for a customer or member.
  • Trailing Documents, such as a car title that still needs to be obtained after a loan’s consummation date.
  • Incomplete Information, such as a scanned-in loan agreement that contains missing pages or signatures.

Proactively Managing Document Exceptions

To reduce risk and ensure efficiency, banks and credit unions should proactively identify and resolve document exceptions.

  • Tracking Existing Exceptions: Being able to quickly generate reliable exception reports provides an actionable snapshot of document-related issues.
  • Anticipating Upcoming Exceptions: Waiting until a document has expired isn’t the best strategy, especially for UCC filing records or other critical items. Financial institutions should adopt processes to surface upcoming exceptions, making it easier to stay ahead of undesirable situations.
  • Clearing Exceptions: Saving a missing document in a paper loan file technically satisfies an exception, but failing to update a tracking spreadsheet or tickler could lead to confusion. Ideally, the financial institution’s imaging and exception tracking workflows should be unified within one system to reduce oversights.
  • Ensuring Quality Control: Just because a borrower provides a document doesn’t mean that it will meet the financial institution’s requirements. Saving the right information in the right place depends on rigorous quality control practices.

Software for Document Exceptions

Many financial institutions start by tracking exceptions in spreadsheets. However, some prefer utilizing software from their core or a specialized vendor. For example, our AccuAccount solution is optimized for commercial lending and offers built-in exception tracking and reporting. Get exception reports in your inbox, stay ahead of issues with lead times (aka “grace periods”), manage imaging and tracking in one system, and enhance your document quality control workflow with AccuAccount.

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