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.

Exception Tracking Workflows

To maintain compliance and mitigate risk, banks and credit unions must proactively manage their exceptions. Tracking is a key part of an effective exception management process. The steps involved with tracking exceptions are collectively referred to as an “exception tracking workflow.”

Key Components of an Exception Tracking Workflow

Specific practices may vary among financial institutions, but exception tracking workflows typically include:

  • Setting and communicating clear expectations for “the norm,” such as what documents must be present in a loan file or when annual reviews should occur.
  • Identifying exceptions, such as a missing signature on a customer application or an expired driver’s license.
  • Preparing exception reports to surface accounts, relationships, and situations requiring action.
  • Sharing exception reports with relevant stakeholders, such as loan assistants, commercial lenders, and the board of directors.
  • Generating and distributing notices that concisely summarize outstanding requirements for account holders.
  • Following up with customers, members, and staff to ensure timely completion of past-due tasks.
  • Adding documentation and information to source systems, such as scanning a customer’s financial statement into the digital loan file.
  • Resolving exceptions to avoid outdated data in the tickler file, spreadsheet, or software. 

Working Toward a Better Workflow

Traditionally, financial institutions’ exception tracking workflows have been time-consuming and tedious due to manual processes, leading to operational bottlenecks and unreliable exception reports. Lack of centralization often results in a plurality of tracking methodologies across branches, departments, and teams.

Consolidated tracking in a system like AccuAccount from Alogent encourages healthier exception workflows. AccuAccount was built for the unique needs of financial institutions, offering flexible tracking of credit, loans, collateral, trusts, deposits, and policy exceptions. Document placeholders, expiration dates, and Dynamic Reporting for AccuAccount help bankers increase productivity.

Watch a 28-minute webinar to learn about exception tracking in AccuAccount. View additional resources in Alogent’s Innovation Hub
 

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