Inflated Exception Reports? Try This Instead.
Lending policies specify the point at which commercial credit documents no longer need to be collected. Such determinations are typically based on a borrower’s loan balance and/or loan commitment amount, but factors like document type and credit risk are also relevant. Tracking gets complicated, which is why some commercial lenders ignore exception thresholds and collect more than what is required. Multiplying this approach across a growing commercial portfolio could lead to thousands of “exceptions”—that aren’t actually exceptions.
If you’re tired of inflated exception reports and friction with borrowers, we’d like to introduce you to AccuAccount. This post explores a powerful AccuAccount feature that automatically disables exceptions based on thresholds.
Automatically Disable Exceptions When Thresholds are Met
AccuAccount is optimized for the unique needs of commercial lending. Financial institutions can configure exceptions for each credit and loan document type, making it easy to customize how exceptions occur (or do not occur) in AccuAccount.
Let’s imagine that your loan policy does not require tax returns from commercial borrowers with loan balances under a specific amount. Building this logic into AccuAccount is straightforward. Your system administrator simply navigates to the exception filters tab, selects the account balance option, keys in the appropriate threshold amount, and clicks “update.”
Once configured, AccuAccount no longer prompts staff to collect tax returns from borrowers under the threshold. That means fewer “past due” documents and, as a result, fewer “exceptions.”
And, since AccuAccount interfaces with popular core banking systems, there’s no manual data entry required. Just reliable, timely data that powers your financial institution’s business processes.
Bonus tip: Monitoring balances below a threshold amount also make it easier to identify borrowers in danger of churn!
Avoid Exceptions that Aren’t Actually Exceptions!
Exception management is essential for ensuring compliance and risk management. That said, resolving exceptions diverts resources away from your core mission. Use exception thresholds in AccuAccount to avoid unnecessary tracking requirements—and downstream exceptions (that aren’t actually exceptions!).
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