Top 6 Strategies for Bank Backlog Document Capture

Still relying on paper files?

For banks that haven’t implemented an electronic document imaging system, the backlog of paper files can seem insurmountable. In our recent webinar, Scaling Pikes Peak: 5 Tips for Overcoming a Mountain of Documents, we provided a step-by-step plan for financial institutions looking to attack that ever-growing “mountain” of documents.

In this post, we’ll discuss the first step: determining your bank’s priority for paper backlog capture. There are several approaches that we see banks use most often, and the option you select should be based on your institution’s specific circumstances. Continue reading below to learn about the six most common approaches for converting your existing paper documents to an electronic filing system.

1. By Active Relationships

Most commonly, banks begin the capture process based on active relationships. In this approach, backlog capture starts with the files that are most frequently used and accessed. Large dollar relationships, classified credits, and insider loans are the files that examiners and auditors often want to see when they come into your bank. Focusing your capture efforts on the three key categories mentioned above will have the biggest payoff for your bank.

2. By Specific Departments

Some banks choose to start with a specific department. In this approach, backlog capture begins with a selected department (i.e. commercial loans). Once the backlog is completed for that department, capture for another department will begin. Banks that have reached maximum storage capacity in a certain department may find that this approach is beneficial.

3. By Product

Another option is to work through the backlog by product. Backlog capture starts with a selected product type (i.e. consumer loans, commercial real estate) depending on the bank’s focus. Once the backlog is completed for that product type, capture for another product begins.

4. By Branch

Backlog capture can also be tackled branch by branch. As the name implies, banks that choose this method will move through the backlog capture process one branch at a time. If your institution only has one branch, then obviously this approach is not an option for you.

5. By Workflow Priority

Often we’ll see banks use the touch it once method where any account being modified or extended is scanned. When you extend a loan or make a new loan for a customer, you pull that customer’s entire relationship and go ahead and scan the backlog when you’re working with that customer.

6. By Alphabetic Order

Probably the least frequently used approach, A-Z scanning involves working through the backlog alphabetically. While we don’t see many banks choose this method, one benefit of A-Z scanning is that it can be easier for those involved to know how far along the bank is in the backlog capture process. For example, if you’ve captured up to the L’s, you know you’ll be able to find that in your imaging system and anything M-Z may still be in backlog.

Bank Backlog Document Capture, Simplified

Remember, it’s important to carefully consider the focus of your financial institution before selecting a backlog capture approach. For more on this topic, watch the full webinar here. Stay tuned for our next article in this series, addressing the topic of how to execute your backlog conversion.

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