With credit document imaging, financial institutions leverage technology to scan, save, and organize information that pertains to borrowers.
In general, credit documents are those documents that pertain specifically to the borrower (not the loan). Financial institutions rely on credit documents to provide information about the customer and establish the customer’s creditworthiness.
Credit exceptions occur when a bank or credit union expects to have certain credit-related documents but does not.
In banking, the term “customer financials” is commonly used to encompass a variety of documents that are utilized to determine the creditworthiness of a borrower. Banks utilize data from the customer financial statements to make prudent decisions and avoid unnecessary risk during the lending process.
Financial institutions use the phrase “Day 1 processing” to describe the time period when a check enters the payment stream for settlement. Banks and credit unions must implement reliable and efficient Day 1 processing workflows to ensure streamlined operations and avoid costly oversights.
Financial institutions use “Day 2 processing” to describe the identification and handling of checks with exceptions. Not all checks require Day 2 processing. In fact, the vast majority of checks are processed without exception.
The expression “day forward” is used when discussing a process change that will occur now or in the future and continue indefinitely.
Debt covenants, also known as financial covenants or banking covenants, are conditions written into commercial loan agreements that bind both the bank and borrower to the terms.
A deed of trust is an agreement between a residential or commercial borrower and a lender in which a neutral third party serves as a real estate property trustee.
Deposit channels, or points of capture, are where a bank or credit union can acquire check images for processing, including both in-branch and remote locations.
Deposit documents are those documents that are necessary for establishing, maintaining, and supporting a deposit account at a financial institution.
Deposit imaging is the process of digitizing paper documents that are associated with deposit accounts.