Bank Loan Management

Industry surveys show that bank loan management is a growing priority for both community and regional banks. Many banks had made the strategic decision to move ahead with implementing loan portfolio software to eliminate the manual loan file management processes that have been in place since banks began lending money. A growing number of community and regional banks are implementing loan portfolio software in an effort to streamline their bank loan management processes. The AccuAccount loan management system from AccuSystems is the preferred solution of community banks throughout North America.

In light of recent regulatory changes, financial institutions have experienced a growing need for bank loan management to manage portfolios, track exceptions and meet audit requirements. The upheaval in the financial industry only exacerbated the banks’ issues as more problem loans were identified and classified. This resulted in the allocation of more time and more resources to solve problems already booked in the bank loan management queue, due to a lack of bank loan software.

In the past few years, many community banks have successfully deployed branch capture of checks and on-line banking. However, today most community banks still use paper based filing systems instead of automated loan management systems. After consumer and commercial loans are booked, documents are placed in physical paper folders containing 6 to 10 tabs and then filed away in the archive room. Banks tend to process documents as they arrive, including documents relating to perfection, collateral, annual financial, or insurance. The file is pulled and the documents are, hopefully, placed under the designated tab within the file and then re-filed back into the filing cabinet located in the file room. This process is continued until the loan is paid off. An automated bank loan system, such as AccuAccount, would certainly streamline such arduous manual processes.