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.
ACH (Automated Clearing House) is an electronic payment network that enables banks, credit unions, businesses, and consumers to securely send and receive funds between accounts for transactions such as direct deposit, bill payments, recurring payments, and account transfers.
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.
Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, make decisions, and take action to achieve specific goals with limited human intervention.
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.

Soft Information

Unlike hard information, which can be easily quantified about a person or business, soft information includes facts, commentary, and other details that are less tangible and somewhat difficult to share. Soft information is of significant importance to smaller financial institutions that emphasize relationship lending and regularly make loans to startups.

Examples of Soft Information

The Small Business Lending Survey of 2024, published by the Federal Deposit Insurance Corporation (FDIC), lists several types of soft information:

  • Business plans
  • Industry experience
  • Business advisors
  • Loan officers’ assessments
  • Knowledge of market conditions

Although banks of all sizes rely on soft information, the FDIC study found that smaller institutions are more likely to leverage soft information when underwriting small business loans. This may be due to a fundamental difference in how large and small banks generally approach commercial lending, especially startup lending. According to the study:

“To manage the risk of lending to start-ups, large banks more often rely on government guarantees, while small banks more often use soft information gleaned from meeting with applicants.” – Source: FDIC Small Business Lending Survey, 2024

Managing Soft Information with ECM Technology

Accurately assessing the soundness of a founder’s experience, knowledge, and business plan can be highly subjective. Organizing information gleaned from meetings into a loan officer’s assessment is a practical step, but such assessments are still based on the lender’s perception. Despite the lack of hard facts, small lenders still view soft information as a critical source for informing decisions about business loans.

Given the importance of soft information for commercial lending, financial institutions should identify opportunities to consolidate soft and hard information about each borrower. Modern ECM (enterprise content management) software, such as Alogent’s suite of solutions, can make it easier to provide lending staff with a comprehensive view of each relationship. For example, banks and credit unions can use our FASTdocs solution to electronically request (via digital banking integration), store, and manage borrowers’ business plans and other documentation. AccuAccount, our ECM software that’s optimized for commercial lending, offers a straightforward way for lenders to capture important context via comments. Information in AccuAccount is organized into a visually intuitive experience that “looks like” a traditional loan file, bringing together hard and soft information about each borrower.

Read more banking definitions or request information about Alogent’s ECM solutions for financial institutions. Contact us to schedule a demo for your bank or credit union.

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