New Account Boarding: Automating Your Doc Structure

Your financial institution offers an ever-increasing number of banking products – both on the commercial and consumer sides of the business. Checking and savings accounts, consumer loans, small business loans, IRAs, lines of credit, and credit cards are just a few examples.

With so many new customers and accounts to keep organized, managing all of the documentation can seem like an impossible task.

In this article, we’ll explore why automating your document structure can alleviate much of the stress that’s associated with new account boarding.

The Problem with Manual Document Tracking

Why does your financial institution exist?

At a very basic level, your bank or credit union exists to help customers gain the financial services they need to realize their dreams and goals. Each new loan or account has a specific purpose in someone’s personal story. For example, the SBA loan that was made to Mr. Thomas’ startup allowed him to hire staff, purchase inventory, and achieve liftoff. The college savings account that was set up by a single mother serves a vital role in her child’s education. In short, your financial institution is in the business of changing lives.

Unfortunately, changing lives isn’t the easiest business to be in. Lending money and offering financial accounts come with a number of upfront and ongoing obligations – not the least of which includes collecting and validating adequate documentation. With so much paper to collect, validate, index, and manage, it’s easy to lose sight of the bigger picture – especially when everything is tracked manually via spreadsheets or manual ticklers.

Why are manual processes so distracting? Here are just a few reasons that we’ve witnessed firsthand:

Not Scalable

Spreadsheets and ticklers are, by their nature, not very scalable. Sure, a checklist can be cloned and printed an unlimited number of times. Ticklers can track an unlimited number of exceptions. With that being said, both spreadsheets and manual ticklers are heavily reliant on human labor. If you doubled the number of loans you are currently originating, would you also need to double the number of loan administrators? If so, that doesn’t seem like a scalable solution.

Prone to Error

Each time a new customer or account is booked to your core, someone from your organization must remember to add new exceptions in your tickler or spreadsheet. Failing to take action can lead to a multitude of data integrity issues and compliance risks.

Inefficient QC Process

Manual tracking can even have a negative impact on your QC process. Let’s say that you’re using your core system’s imaging module but track exceptions in a manual tickler. Exceptions must be manually cleared even for documents that pass internal QC. Rejected documents create even more chaos and open the door to additional oversights.

In summary, manual processes create operational bottlenecks that divert everyone’s attention away from what matters most: serving more people in the community.

Automating Your Doc Structure Can Help

So, what can your financial institution do to reduce manual processes and free up more resources? Automating your document structure is a great place to start.

Unlike checklists and ticklers that are completely reliant on manual data entry, an integrated document management system (like our AccuAccount platform) connects to your core banking system. As new accounts and customers are booked to your core, AccuAccount automatically creates matching records with pre-built document placeholders – virtually eliminating the need for spreadsheets or checklists.

For example, let’s say that Mr. Thomas takes out a new loan to purchase a larger factory. Once Mr. Thomas’ loan is booked to the core, AccuAccount goes to work. Basic information about his new loan (such as the type of loan, loan number, balance, and origination date) is pulled into the system and merged with his existing profile.

View Customer Loans

Red and green indicators show which documents have already been collected and what still needs attention.

Document Status

Exceptions are just a click away, too, and provide lenders and administrative assistants with the info they need to effectively manage each customer’s documentation requirements.

Commercial Real Estate Exceptions

Scanned or uploaded files go through a seamless, trackable QC workflow in AccuAccount. And, as documents are validated by your QC team, AccuAccount automatically clears the exceptions for you.

Time to Automate?

Does your bank or credit union need an automated approach to new account boarding? Let’s connect to discuss your existing workflow and see if automation is right for your financial institution.

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Connect with Cathy Cirullo

Cathy Cirullo is the Implementation Manager at AccuSystems and has 30+ years of experience working in the banking industry. Having overseen loan operations departments, compliance programs, and retail operations, Cathy has extensive knowledge of loan and deposit documentation and regulations.