Document Collection
Document collection is the process that organizations go through to obtain information from other parties. Banks and credit unions collect many documents from a variety of stakeholders—and for a variety of reasons. Implementing sound document collection practices is a key step for ensuring accurate recordkeeping, enabling efficient operations, and avoiding risk.
Sources of Documents
Approximately 96% of U.S. households maintain at least one bank account, according to the 2023 FDIC National Survey of Unbanked and Underbanked Households. Banks and credit unions must therefore be prepared to interact with—and collect documents from—a highly diverse stakeholder group, including:
- Account holders
- Borrowers
- Potential customers or members
- Loan applicants
- Employees
- Job applicants
Financial institutions may also need to collect documents from other entities, such as:
- Accounting firms
- Government agencies
- Insurance companies
- Vendors
- Other banks and credit unions
Types of Documents Collected
Documentation requirements depend on various factors, including the nature of a financial institution’s relationships. For example, collateral documentation for construction loans will differ considerably from those related to trusts or deposit accounts. Examples of documents commonly collected by banks and credit unions include:
- Borrower tax returns and financial statements
- Borrower accounts receivable records
- Insurance documents
- Renewal agreements
- Loan applications
- New account documents
- Auditor findings reports
- Vendor contracts
- Invoices
- Flood zone determinations
- Resumes
How Financial Institutions Collect Documents
Email, secure FTP (file transfer protocol), digital banking systems, and general-purpose document portals are widely used by banks and credit unions for document collection. In addition, many documents are collected in their original (hard copy) format, such as a borrower's tax return that is physically delivered to a local branch.
Failing to implement scalable collection systems and technologies leads to a plurality of document intake workflows, which are difficult to scale. Using a document portal that’s purpose-built for the needs of financial institutions may offer a better approach. For example, Alogent Document Portal enables secure document collection from practically any person or business, including applicants, borrowers, guarantors, CPA firms, vendors, and other third parties. ECM integration and API availability opens the door to a collection workflow that’s secure, scalable, and intuitive. Learn more about Alogent’s ECM suite.
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Learn More: Secure Document Collection with Alogent Document Portal
