RALEIGH, NC (April 28, 2014) -- Sageworks, a financial information company that provides risk management solutions to banks and credit unions, has released a new whitepaper on attaining success with loan administration. Of the many documentation challenges facing community banks and credit unions, none seem larger and more disorganized than the task of identifying, collecting, filing and reporting on loan ticklers, covenants and policy exceptions. As the paperwork surrounding loan origination requirements continues to grow, the headache for financial institutions associated with maintaining, updating and tracking compliance with loan documentation can take on a life of its own and become a major source of inefficiency and risk.
As institutions continue to implement automated systems in credit analysis and allowance for loan and lease loss calculation for consistency and best practices, they often overlook opportunities for significant risk reduction and process efficiency in loan administration or portfolio management.
A typical institution employs multiple staff for end-to-end loan processing, and the staff may spend many hours per day identifying new documentation related to loan ticklers, sending out correspondence to request information and directly calling customers to chase down documents. This lost time could have been spent building new business or providing customer service.
More importantly, poor loan administration can also result in increased exceptions and loan risk, which can invite increased scrutiny at exam-time, if not enforcement actions.
Automation represents a fundamental shift in the way financial institutions track, manage and respond to loan administration requirements. By automating the tasks of managing loan ticklers and tracking exceptions and covenenants through Sageworks Loan Administration, financial institutions can reduce the burden on loan staff while increasing the completeness and timeliness of loan documentation administration. With standardized documentation on loan ticklers, it becomes easy to track exceptions and proactively stay on top of the institution’s loan-portfolio health.
Collectively, the benefits to the institution include improved risk management, productivity and profitability. This creates a compelling case for many financial institutions to focus on loan administration when evaluating areas for operational improvement.
To learn more about success with automating loan administration, download the whitepaper at Sageworks.com.
About Sageworks
Raleigh, N.C.-based Sageworks is a financial information company. Sageworks’ data and applications are used by thousands of financial professionals across North America to analyze privately held companies and to manage and calculate risk in their loan portfolios. The company has been named to the Inc. 500 list of the fastest growing, privately held companies in the U.S. and to the Deloitte Technology Fast 500.