Authored on: Jan 27, 2012
Banks that have successfully implemented document imaging applications, developed comprehensive polices and diligently follow consistent procedures reap the benefits of efficiencies in loan portfolio management (even more efficiencies if the bank does enterprise-wide imaging), increased productivity, diminished loan policy and document exceptions and streamlined audit and examination processes.
Advantages to installing and managing a digital loan portfolio system can be divided primarily into two specific definitions: tangible costs reduction and intangible costs mitigation. This paper will address both definitions and further illustrate the savings to a bank in bottom line, staff resources and compliance.
The state of loan document imaging today
Surveys amongst banks, auditors and regulators have determined that electronic loan management is the next large technology investment community banks are planning. Many banks had made the strategic decision to move ahead with implementing document imaging systems to eliminate the manual loan file management processes that have been in place since banks began lending money. The turmoil in the global economy beginning in the late summer of 2008 delayed the start of most of these decisions to move forward. The prevailing attitude was "if it ain't broke, don't fix it...yet".
Unfortunately for many financial institutions, their plight was amplified by the innate inability to manage their loan portfolios efficiently, track and cure exceptions timely and appease auditors and examiners by their inability to identify and grade loans because of the sheer volume.