The Banking Buzz: Proactive, Not Reactive: Transform Audit Prep & Smarter Compliance with Intelligent Document Management

Thank you all for joining us today. My name is Cara Talka. I am the Marketing Communications Coordinator here at Allergan, and I'll be the moderator for today's webinar. In this session, we're gonna explore how Alligent's comprehensive ECM suite can help you shift from a reactive compliance and risk management stance to a proactive intelligent data driven strategy. We have a great set of speakers here with us today. We have Jamie Biggs, our sales manager for AccuAccount, and Alex Gillette, a senior product manager for our EIM. If any questions come up during the webinar, feel free to type them into the chat box. We'll have a designated Q and A segment at the end to answer any of those questions. And with that, I'm gonna hand things over to our speakers to kick it off. Good afternoon, everyone. I'm Jamie Biggs, and I'm gonna be first looking at the agenda for what we're gonna cover today. So just really briefly, we're gonna look at some of the ECM products that we have available. We're gonna go through our document audit QC workflow process that we have available. We'll talk about audit and exams and how those can be approved at your financial institution, our document versioning and tracking options, workflow options, and we're also going to touch on some of the retention availability that you have within the software. All these things help keep you in compliance. So we're going to kick off the webinar today by doing a quick poll on what are your most common compliance issues. So we're going to go ahead and bring up that poll now. These are things that we commonly see. So if you will go in and just select what you most commonly see at your financial institution, as far as things that you're getting hit on, from a compliance standpoint. So is this going to be more of your credit and loan portfolio management, different regulatory compliance issues? This could be violations of things, secrecy acts, OFAC screening, and whatnot. This could be information technology, so having to do with the software that you're using, passwords, logging, or internal controls in government. So this may be just insufficient oversight of your board or audit committee, audit testing and whatnot. So go ahead and vote for us there, we'll give you a couple more seconds to put in your answer. Once we have everybody voting we'll go ahead and move on So just kind of talking about those poll options that we had up on the screen, those are the most common things that are being reported on a regular basis. So just a little bit more on those. You see your credit and loan portfolio management is typically the number one thing that's being hit on there, which is going to be inadequate loan documentation such as missing financials, your collateral details, borrower information, and whatnot. Regulatory compliance, again that's going to be violations of items such as your Bank Secrecy Act, missing CTRs, SARs not filed, weak customer due diligence. We see gaps in OFAC screening, missing and outdated disclosures. The third one there, I touched on information technology. So inadequate access controls, outdated software, insufficient logging and monitoring, and just top things that we're seeing being reported. And then internal controls and governance, that's going to be insufficient oversight again by your board or audit committee, incomplete or insufficient internal audit testing, policy exceptions not being tracked or reported appropriately, And these are all compliance issues that can be solved and better managed with the right technology and tools. And that's what we're going to be talking about today. So I'm going to go ahead and turn it over to Alex to discuss some of the fines that we see having to do with these audit findings. Yeah. Hello, everybody. My name is Alex Gillette. I'm the senior product manager here for our EIM or ECM product line, specifically Fastox and and Acu as well. Yeah. Let's talk about fines here just for a minute. I mean, I think we see this all the time in the news, you know, various financial institutions not really having a lot of or the due diligence that they need or the security that they need to, to do their job in a way that's compliant with regulatory institutions. And just so you know, just just just this is a really big number here in twenty twenty four. Four point five billion dollars was paid worldwide in these types of fines for lack of compliance, ninety percent of that being US financial institutions. That's a really big number and certainly one that we aim to negate or at least lessen a lot with our EIM or ECM products we hear at Alligent. You know, and usually the bigger the bank, the bigger the penalties. You know, compliance does kind of fail at scale. And so these cases show that even the biggest institutions aren't immune to regulatory scrutiny. And so we have here bank A, with over two fifty billion dollars in assets, had to pay three point one billion dollars in penalties for anti money laundering, prevention fines. We have institution B here, with over a trillion dollars in assets, again, being fined a whole lot of money, for mismanagement and, you know, legal fees and phantom accounts and things like that. And then we have bank c here, again, with over a hundred billion dollars in assets, you know, hit for five million dollars for, fine for gaps and trade surveillance across multiple asset classes here. And now, you know, when talking about these fines, it's not just it's not just the big banks, smaller credit unions, or credit unions, not smaller credit unions. A lot of them are smaller, but some of them are bigger. Credit unions share the same compliance challenges. We have a credit union here with over one hundred and fifty billion dollars in assets, five ninety five million dollars for illegal overdraft fees, etcetera. We have Credit Union B over here, that had over ten billion dollars in assets, for paying one point five billion dollars in fines after a fail online banking rollout caused financial harm. And then they had also, you know, a poor vendor oversight as well. And then Credit Union C over here with seventy five million dollars in assets. So, you know, not the biggest one in the world, but still a decent size settling for, six point five million dollars over, some fair lending violations. And Jamie, let's go take it take it over with the Allergan's ECM suite. Yeah. So we're gonna talk about, our ECM products that we have available and how can these products help eliminate, some of the, you know, compliance issues that we regularly see. Alex, do you wanna start by talking over the FastDocs features that are available here? Yeah. Absolutely. And FastDocs is a document management product for banks and credit unions. We're connected to the core banking system where you can securely share documents with digital banking users. Again, we automatically ingest core data and core reports. We build, you know, sophisticated workflows that eliminate a whole lot of manual tasks. And we have either you could host it yourself if you want, or you could have itself hosted here at the Alligent data center. And of course, you know, we have an API, with, that could connect a whole a whole other lot of a whole other slew of third party systems. You know, we actually have a a web share product where you can share, documents with your members so they can see their statements, etcetera. You know, that's integrated with, digital banking solutions, as a as a as an iframe. So, you know, you can share, you know, any whatever, you know, statements and receipts and whatever else, that you wanna share with your customers as well. So really, FastDocs has been around the market for a really long time. It's a very mature product. You know, we take our customers' input very seriously here at Alligent, and we are constantly coming up with new features, new innovations, like AI, like, the ability to remediate a whole lot of fraud with our entities utilities feature. And, you know, again, we're gonna be talking about another upcoming feature here that's specific to, you know, regulatory compliance and being ahead of the curve there. So being more proactive and not reactive, and this is called document versioning. Again, we'll talk about that a little bit more, later in the later in the presentation. And now we'll turn it over to Jamie for AccuAccount. Yes. So, AccuAccount, it has been built to manage commercial loans. We also do other types of loans, really any loans, any lending you're doing at your financial institution. You can also do, deposit accounts and trust accounts, bringing those into the system. But it really is a way to centralize your credit, loan, collateral, and any information that you're wanting to store in the system to report on. We offer a way to quickly find, view, and share documents. Those documents can be shared within the financial institution. They can be emailed out of the system with proper security. We also can share documents to downstream participating financial institutions for participation loans. We offer a way to automatically clear exceptions by imaging into the system. So it gives you a very easy way to manage missing expired items without having to manage them in two separate places. You're able to go in and just update your customer or your members' documents, and we automatically do the reporting for you. We offer the ability to route and approve loans electronically so you can build out workflows within the process per loan type to route those two departments or different individuals on your applications and keep a total history of everything that's going on with those applications, including anything that needs to be tracked. It can be tasks that need to be tracked, your missing documents, expiring documents, and whatnot. And Accu account does connect to over thirty banking core systems. We can bring in information from an LOS, an e sign product. So in really in both products that we offer, we want to create efficiencies that are going to allow you to take away humans doing so much of the work here so you're eliminating human error. The more that we can automate for you with integrations and different processes are going to allow you to be more efficient and make sure that you are staying in compliance. And so I'll also go ahead and let you change to the next slide here and I'm going to jump into our document audit workflow process. This is a way that you can go in and set up a workflow to ensure that the documents that you are getting are exactly what you need, they're in the right place, you have the correct signatures, and any approval that you need to put on that type of document. So we are ensuring the document's validity, you have correspondence document. So you can go in and set what type of approval you need to have on your most important documents. And with those you're going to see history reported, we track everything, every movement of a document, anytime that document gets touched it's going to keep a history for that document that cannot be removed And then you're able to get into reporting for these documents. You can pull different exception reports, comment reports, data reports, whatever you need to get from the system to ensure that you have everything that you need on these documents. So just talking a little bit more about how this workflow process works. We're going to say for example you have a promissory note and you can see that in the screenshot here. It's the first two documents that are listed in this history page here. There are different sets of rules that you can set up to require QC on a document. So once a document is imaged into the software, you can make it a requirement that that document has to go through an approval process. You'll see another column here for critical QC and this is something that you can use to force the document through a QC process before the exception will clear off of your reports. So not only are you imaging that document, which would normally clear the exception from your reports, but this is now telling the system that that document has to go through approval and be set to approved before it's going to fall off of your exception report. So we see that used a lot for any important document so that you know that somebody is going in, reviewing that item, and it will continue to track until somebody says that that document is exactly what it needs to be. So you have control over what's being put into the system and making sure that everything is in compliance with those documents. The next thing we're going to talk about are audits and exams. So we have a way with a built in module, this is standard with the system, where you can build out an audit to give to your auditors or examiners without having them to get into your imaging system. They never have to have permissions. They don't have to have a user set up in there. They cannot access everything that you've imaged. They are only getting what you build into an export and basically hand to them. So this gives you a controlled environment where you can set what customer documents, what account documents, loan documents, collateral documents they're going to be able to see. It organizes those documents, and we get a lot of compliments from auditors on the system because it builds out the customer loan collateral documents the exact same way that you see in the software. It's just making a copy of those customer files or member files so that, they can go in and easily view the documents the same way that you would in your imaging system, but you can decide which of the documents are going to be exported to them. So in this screenshot here you can see a couple customers listed. You would determine what accounts you're wanting to share, what collaterals you want to share, and then you can choose the specific documents that are being shared to them as well so you don't give them access to absolutely everything within the software. But what's really nice is you can also decide how this is given to them. If you want to put this on a thumb drive, an external hard drive, if you want to put it out on an FTP site for them so that it's secure, you can do it that way. And that way, your auditors or examiners do not have to be on-site. You can give that to them, in one of those external sources so that they can view the information. Or if they are on-site and they're connected to your intranet, you can give them just the URL into the audit. So again, they do not have access into your imaging system whatsoever. They only have access to that export of customer member loan collateral data that you decide that you want to put into that audit to get to them. With that I'll go ahead and turn it back over to Alex to talk a little bit about our document versioning options. Awesome. Thank you, Jamie. I appreciate that. Let's go ahead and talk a little bit about document versioning. Document versioning is a brand new feature to FastDocs. We're really, really excited about it. And, you know, with documented versioning, documented versioning again just lets you, create separate versions of the document without getting rid of the old ones. So you can see a history there of the evolution of this document. And, you know, what this really helps in being a proactive company regards to regulatory compliance is that, you know, versioning ensures that, you know, like every change to a document is recorded. It will be recorded with time stamps, user IDs, change descriptions, etcetera. You know, all of these things, again, are just very critical for meeting regulatory requirements like, you know, SCC, FINRA, etcetera. And it also maintains, you know, audit readiness. So having a complete version history allows internal and external auditors to verify the integrity and the evolution of the document. And, again, just making sure that you don't have any unauthorized or undocumented changings any any undocumented changings, having occurred. Regards to, data integrity and non repudiation, version control systems help enforce, you know, document integrity by preventing and enabling rollback to the previous versions, which supports legal defensibility and operational transparency. You can, do that if you want to, but and you can, also say that you're not able to do that. So, we give you a whole lot of options here in our document versioning. Again, we're really excited about it. And, you know, finally, we wanna talk about access control and change management. And we do work in tandem with role based access controls to ensure that only authorized personnel can make changes, can make new versions, and that, you know, again, all modifications are logged, for in any compliance or audit reviews. Additionally, all of these versioning, all this versioning and all of these changes are are certainly reportable within our system. So we're gonna talk a little bit about, document tracking and retention here. You know, with FastDocs, not just for document versioning, just but for any document that exists in FastDocs, we can track any user activity, identify any changes, revert revert to prior versions if we need to. And then, you know, we have these automated alerts that ensure, you know, a lot of timely renewals of critical documents, you know, reducing compliant risk and audit findings. I'm just gonna add to a couple of the document tracking options that we also have available. When we go into track documents, especially on commercial loans, we see that's typically the most important documents that need to be tracked because you have things that need to be constantly updated on those files. But we keep history changes, you know, we kind of talked about that with our document workflow and QC options that we do keep history on all of the documents anytime it's even touched. But we do automatically track missing documents in the system so anything that hasn't been imaged will automatically track on your reports. Expiring documents also automatically track until they are updated with a new, more current document, and reoccurring documents. So you can go in and set what documents need to reoccur on a regular basis. If you need to collect your annual financials, tax returns, and whatnot, it can be set up on a schedule so that you're automatically being alerted to collect those from your customers or your members at your institution. And we have reporting around all of it so anything that's tracking as an exception you can build out custom reports, You can have subscriptions to your reports so that everybody gets a copy of what's tracking at your financial institution on a regular basis. Your lenders may need to get a weekly exception report. Your branch manager may want it monthly. Regional, is it quarterly? Whatever it is, you have full control over setting up subscriptions so that the right people are being notified of documents that need to be tracked and collected. We also track policy exceptions and that's something that's sometimes not fully utilized because you don't know it's available. But you can go out and build any policy exception that you're wanting to track at the customer or member level, at the loan level, or the collateral level to make sure that you're staying in compliance with your policies. There are several reports that you can pull. Again, those can be set up on a subscription if you wanted those emailed out on a regular basis, but just to make sure that you're getting in and updating those policies and checking on those on a regular basis. And then the last thing I just wanted to mention really quickly is those reports that you're building and creating in the system can even be put onto a dashboard. Dashboards are customizable. So depending on what your role is, you can create custom dashboards to ensure that you are tracking these items regularly. You don't have to get a report every time you open the system. You would see exactly what items you're needing to follow-up on or collect from your customers or members. Awesome. Thank you for that, Jamie. Sure. K. So let's talk a little bit about workflows. You know, workflows, we do have an automated workflow here in, Fastdocs. I'm not gonna talk about Fastdocs. And so we do have automated workflows that ensure that documents follow, like, these predefined approval paths and retention schedules, you know, and all of that really just reduce reduces risk of, you know, noncompliance and really simplifying audit preparation. We've had document workflow for a while now. We're really excited about it, and it's just really fun to create these workflows and see them and just kinda see how they work within the product. It's really it's really very interesting. It's very I'm looking I'm I'm at a loss for words right now, but a very interesting feature that we have I'm really excited about. When it comes to operational efficiency, you know, really what this does is eliminate a lot of manual routing, filing, and tracking. And so we just kind of stream lies the handling across all these different documents through reducing processing time. And when you do that and you have all these automated features, it really does really reduce a lot of manual human error. And then you gain real time access to documentation status or document status history, ownership. Again, just enabling better oversight and and faster resolution of bottlenecks or any kind of missing documentation. So we have that as well. And let's go ahead and talk a little bit about retention. The great thing about, document retention, you know, in FastDocs is that for every single document that comes into the system, you can set retention rules. So if you only wanna keep this document for, let's say, one year or five years or ten years or seven years or however this document is regulated by its regulating authority, you can set that documentation retention. And then at that particular time, those documents are automatically purged from the system. You know, it's, it's really good that we have this automatic purging because you really don't wanna keep documents more because if you're subpoenaed, then you have to produce those documents. So we have these forced retention policies that automate, the application of like retention rules, and we can do this by like account type, document type, or what we call document template, for any particular regulating authority, and just to make sure that you are in compliance with, you know, banking standards. We also have account specific document handling, like we've kind of alluded to before. Now these are tailored to automatically route, store, and retain documents according to specific account requirements, like trust accounts or loan portfolios, reducing any manual errors, and ensure that you always have the proper documentation on hand. And if you have any documents that have any, indefinite, like retention, FastDocs ensures that they are stored with audit trails, again, access controls and, you know, long term preservation strategies. Thank you so much, Alex. It you know, as we've come to the end of here, we're gonna start taking a couple of questions from the chat. It does look like we have a few right now. First one, what's your biggest compliance challenge when managing digital documents today? Alex, do you wanna take that one? Oh, sure. That was a question for me. Oh, okay. When when maintaining, you know, we just one is the audit trail. You know, the audit trail is like the one of the biggest things that we have. That's that that can be a challenge. And retention rules, that's definitely a challenge. And again, you know, as a vendor, we always want to maintain that any document transfer or any document viewing is actually only be able only viewed by the people who have authority to view them. So all the security that's built into FastDocs, I mean, it when you say the most, there isn't the most. There is there's so many things. You know? When you talk about regulatory compliance, it's really, you know, a comprehensive strategy that we really try to employ with FastSox and with AccuAccount, to ensure that, you know, you're never going to be, you know, get in trouble with any auditors auditors or regulatory agencies or anything like that. There's just so many things. It's not, I really wish I could reduce it to one, but for for as a vendor, we wanna make sure that every every credit every credit union, every bank has the tools that they need in FastDots to maintain any kind of regulatory compliance that they may come across. Thank you so much. Moving on to the next one. Can documents be requested and tracked more than once? Something such as a financial statement. I'll go ahead and answer that. Yes, absolutely. You have complete control over what gets tracked, in any of our EIM products. When you go in, if you have something, and I'll use this example because you brought that up, the financial statements, you can go in and set a schedule for how often you want to have a document requested or tracked in the system. So we know there are different, you may have one client that needs an annual financial statement, another needs a quarterly, monthly, whatever that is. You can go in and say how often you want that document to recur. We have a process that runs that rebuilds the document based on that schedule. So if it's something like a financial statement that you need quarterly we'll say, It'll initially track that document. You can then image that document, which will clear that exception from tracking on your reports automatically. And then the next quarter rolls around and a new document is built with a missing file, the image isn't gonna be there. So it pops back up on your reports so you can go out, you can contact your customer. We do notices. You can generate an email to your client. You can print out a notice letter if you wanted to, to get that item into the system. So that's going to continue happening on whatever schedule you set for any of your recurring documents. So it doesn't have to just be financials. If you need rent rolls or if you want to use that for your annual tax returns, something like that, you can build a schedule on any of those documents you need on a regular basis. Thank you so much, and it does seem we've hit our time for the webinar. We really appreciate everybody for joining us today. If you do have any additional questions, please feel free to reach out through the website or email us directly at marketingallegent dot com. Be sure to check out our events page for all future, webinars and events. We appreciate your time with us this afternoon and we hope you have a great day. Thanks everybody. I appreciate you being here. Thank you.