Why should you automate loan administration?
Many financial institutions have gotten by using their core system or a series of spreadsheets to manage tickler and covenant tracking as well as client communications. In today’s regulatory environment, however, banks and credit unions are being asked to minimize risk and standardize processes. An easy step with loan administration would be to consider automation.
Bankers using a centralized and automated loan administration solution reduce the number of exceptions and the amount of time required for loan administration, according to a recent survey of bankers using such a solution.
Among individuals who reported a time savings, the average showed that loan admin software has helped them spend 35 percent less time collecting and monitoring documents—which is now devoted to building new business for the bank or improving customer service. Also, over two-thirds of participants reported noticing at least some additional efficiency in their process since automating.
Beyond saving lost time and gaining efficiency, participants also reported a more favorable experience during their recent examinations. One banker explained they now “have a central place and report that shows all outstanding exceptions. In the past we could never seem to capture the full picture of where we stood with financial exceptions.”
To learn more about the benefits of automating your portfolio management process, download the whitepaper on Success with Automating Loan Administration.
See what Sageworks Loan Administration can do to reduce the amount of exceptions, and time spent, in your loan review process.