Many of the loan exceptions are document related such as financial reporting, bills of sale, collateral, flood insurance policies, life insurance policies, loan applications, appraisals, and others.
It is very challenging to manage the document collection for loan exceptions management. BankStride platform automates document collection for loan exception management, loan risk, compliance and loan monition and loan management.
WHY EXCEPTIONS MANAGEMENT MATTERS
Tracking the aggregate level of exceptions helps detect shifts in the risk characteristics of loan portfolios.
When viewed individually, underwriting exceptions may not appear to increase risk significantly… However, when aggregated, even well mitigated exceptions can increase portfolio risk significantly.
Over time, the analysis of aggregate exceptions will enable a bank to correlate particular types of loan policy exceptions with a high probability of default.
Since effective exception tracking systems facilitate better risk management, banks are encouraged to establish these systems and to improve them when they can.
HOW DOES BANKSTRIDE HELP BANKS
A borrower’s risk profile can change significantly over the years that follow a lending event. Managing loan agreement adherence through reporting and internal monitoring is an ongoing and tedious battle for banks.
Banks that pursue superb loan agreement management are faced with handling complex recurring tasks using the basic tools of email, spreadsheets, and calendar ticklers. Banks that let this work fall behind risk delaying their awareness of problematic loans or operating practices, jeopardizing capital and reputation.
With BankStride, banks gain high-resolution loan agreement monitoring that saves time and delights customers.
HOW DOES BANKS USE BANKSTRIDE
Banks uses BankStride to schedule and automate the activities required to monitor loan agreements.
For example, BankStride has proven effective in managing revolving lines of credit.
BankStride automatically requests and reminds customers to submit monthly AR and AP listings, inventory analyses, and borrowing base certificates each month.
BankStride reminds the banking team to test various financial ratios. The results of the customer’s actions and the ratio testing all roll up to per-banker and per-office reports that can be run on-demand in seconds.