Eliminating Manual Data Entry

Eliminating Manual Data Entry: Best Practices in Document

Management

May 23· 2017

Streamline your document management process to reduce errors, improve the

borrower experience and increase profitability

Bryce LugarSenior Credit Risk [email protected]

PRESENTED BY

About the Webinar

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About Sageworks

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About Sageworks

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2017 Risk Management Summit

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Disclaimer

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This presentation may include statement that constitute “forward-looking statements” relative to publicly available industry data. Forward-looking statement often contain worlds such as “believe,” “expect,” “plans,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “confident,” and similar terms. There can be no assurance that any of the future events discussed will occur as anticipated, if at all, or that actual results on the industry will be as expected. Sageworks is not responsible for the accuracy or validity of this publicly available industry data. Sageworks disclaims all representations and warranties, express or implied. Risks and uncertainties include risks related to the effect of economic conditions and financial market conditions; fluctuation in commodity prices, interest rates and foreign currency exchange rates. No Sageworks employee is authorized to make recommendations or give advice as to any course of action that should be made as an outcome of this data. The forward-looking statements and data speak only as of the date of the presentation and we undertake no obligation to update or revise this information as of a later date.

Sageworks ETRR

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“I can process 3 returns in the time it takes someone else to do 1, which is a huge difference. The quicker these numbers can be delivered to the officer, the quicker the bank can get answers to customers. It really gives us that step ahead of our competitors, it frees up time that loan officers would be spending on underwriting and allows them to get out there and meet with customers and build the portfolio.”

- Lisa Kerschner, Union State Bank

About Today’s Presenters

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Sageworksanalyst.com

Agenda• Introduction

• Industry Observations

• Electronic Tax Return Reader (ETRR)• What Is It?

• In-Product Technology & FAQ

• Annual Review & Document Collection• Strong Foundations

• Improving Borrower & Banker Experience Simultaneously

• Application Strategy: Digital Origins

• Synthesis & End In Mind

• Questions

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Industry Observations

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Changing Demographics

Competition

Compliance


Disconnected Systems & Manual Re-entry

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Loan Growth vs. Loans per Employee Growth

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Bankers Making Paper

• Traditional Processes Yield Physical Documents

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This Sets Precedent:

• Initial Document Acquisition - Paper• Manual Data Entry (Administrative, Financial)• Duplication of Efforts• Storage• Repeat Process at Review

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The Paper Road To Approval

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Application Underwriting Credit Memo Boarding Imaging/Storage


Review Follows

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The Logical Question(s)

• How can we reduce manual entry and redundancy?

• How do we get our borrowers to buy in?

• Where do we start?

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Electronic Tax Return Reader

• Upload & Automatically Spread Tax Returns in Minutes

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Why Start Here?

• Tangible time reduction in underwriting

• Speed to borrower

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ETRR In-Product Demo

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ETRR FAQ

• What forms are compatible?- Original PDF outputs from tax preparation software

• How do we increase proper acquisition?- Borrower Education

- Borrower Incentive

- Straight-to-CPA Requests

- CPA Networking

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Annual Review & Document Collection

• Strong Foundations & Stronger Strategies

• Improving Borrower & Banker Experience Simultaneously

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The First Step – Strong Foundations

• Tiered contact schedules for document requests

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• Tiered contact schedules for document requests

- A Good Example:

• First Request – Letter – 45 days before due date

• Second Request – Email – 20 days before due date (if unreceived)

• Third Request – Phone Call – 10 days before due date (if unreceived)

• Past Due – Phone Call – 1 day past due

• Past Due 2 – Letter – 10 days past due

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• Modern software can handle custom rules in Example.

• This can be scaled to fit institutional preference.

• Flexible to be adjusted over time.

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Improving Borrower & Banker Experience..

Simultaneously: Provide a digital portal for document collection

• Remove borrower need to physically visit branch.

• Acquire documents securely, digitally, and in less time.

• Expand on best practices – consent to go to the source.

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Improving Borrower & Banker Experience

Simultaneously:

A Better Example (to borrower):

• First Request – Letter – 45 days before due date (mention portal email)

• Second Request – Email – 40 days before due date (include portal)

• Third Request – Phone Call – 15 days before due date (mention portal)

• Fourth Request – Email – 15 days before due date (include portal)

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Example of Correspondence

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Secure Portal with Sageworks

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Improving Borrower & Banker Experience

Simultaneously:

A Better Example (to vendor):

• Email listing all documents required for all mutual clients (with portal)

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This Solves For

• Increased digital documents (paper-free)

• Better borrower experience

• Faster turn-around / timely review

• More automation for tickler tracking

• Proper avenue for Electronic Tax Returns

• Decreased need for imaging

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One Last Item

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Sageworks Client Portal + Borrower’s Electronic Tax Return =

1. Automatically Spread Tax Return 2. Auto-Received Tickler3. Document Stored


Application Strategy: Digital Origins

• Setting precedent up-front

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Replace Paper Application with Digital Application

• Outsourced data entry from the start

• Document acquisition is electronic – no paper

• Customized to look & business requirement needs

• Can be done in-branch or at home

• Depending on appetite – could live on bank website

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Sync with Institution Website (white-label)

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Sageworks Loan Application

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Synthesis

• Simultaneously Improving Borrower Experience Plus:

- Employee Experience

- Institution Efficiency

- Reduced Data Entry & Manual Error.

- Decreased Turnaround Time

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The End In Mind

• If Alternative Lenders/FinTech are the catalyst for this – we lose.

• If Community FI’s are the catalyst – we win.

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Poll Question

What applications do you think eliminating manual data entry would be most useful for your institution?

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Faster loan origination turn-around times

Loan administration/annual reviews/renewals

Implementing a digital loan application

Improving accuracy when spreading financials

Questions?

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Eliminating Manual Data Entry

Economy & Finance

Transcript of Eliminating Manual Data Entry