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How can software help with your bank’s loan administration?

April 29, 2014
Read Time: 0 min

For many institutions, loan administration systems exist as a series of disconnected spreadsheets. Over time, these spreadsheets can grow into lengthy, multi-tab documents for each loan with the details of which financial ticklers and policy covenants are required at what times.

The actual documents being tracked are often stored in filing cabinets, potentially at other branches, and can be difficult to track down or complete. Paper files continue to serve a need in banking today, but their organization and recovery systems could be improved.

In a situation with disconnected spreadsheets and files, the only way to be prepared for examiners is the persistent work of loan officers and administrative staff who retain the knowledge of what is required, and when.

“I can always tell the banks that have well organized document and technical exception tracking systems.” says Gary Welsh, loan review and compliance manager (CRCM) with Condley and Company, LLP – Banking Services Group. “They are the banks that have the best annual loan analysis prepared with the most up-to-date financial statements, appraisals, tax returns and borrowing base analysis available.”

A central loan portfolio management software can act as the source of all loan administration documentation requirements and collection from multiple loan officers.

As loan officers enter their loans into the loan administration system, they can attach ticklers and covenants to be centrally tracked for completion and compliance with loan terms, while automating notifications should exceptions arise. Additionally, it gives a place for each loan officer to create notes regarding unique circumstances of the loan, so the organization doesn’t lose sight of the customer’s expectations and maintains their commitment to customer service.

Beyond organizational improvements, a survey found that 74 percent of bankers said the implementation of a central loan administration system had either significantly increased or increased efficiency with portfolio management.

Sageworks Loan Administration is part of Sageworks’ broader banking suite of credit risk software. It simplifies tracking tasks and reduces examiner criticism by automating the administrative workload associated with client correspondence.

Through a connection to an institution’s core processing system, Sageworks Loan Administration has up-to-date information about loan payments and balances. Paired with tickler and covenant tracking, the software knows when to prompt customers for periodic documentation requests and even prepares the outbound correspondence automatically.

In addition, Sageworks Loan Administration can provide a digital, central repository for all loan documentation, which overcomes the challenges with preparing loans for review or examination. Instead of checking multiple spreadsheets, collecting physical documentation from credit files and reviewing covenants or financial ticklers, Sageworks Loan Administration completes the tasks and creates comprehensive reporting for you.

This removes the hassle of tracking down details for annual loan reviews, examinations and audits, while greatly reducing the cost and effort of preparing for these events.

About the Author


Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

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Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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