While imaging is on the rise when it comes to banks managing loan documentation, few are completely paperless, according to a survey of 80 community banks by document imaging provider AccuSystems.
According to the survey, while 70 percent of banks responded that they used some type of imaging system, many also supplemented that with paper-based management, as only 12 percent reported being "completely paperless." Meanwhile, more than 75 percent of banks surveyed reported having "moderately efficient" loan management processes, while 16 percent claimed to have less than efficient processes.
Meanwhile, more than 71 percent of respondents said they believe loan document managements systems are good investments, while only 5 percent of those surveyed believe such systems are not worth the upfront cost.
When it comes to managing the loan process, financial institutions surveyed generally pointed to internal challenges more so than external. The most common challenges had to do with getting buy-in from senior management, system building, and training staff. Altogether, internal barriers such as these accounted for approximately 70 percent of the biggest issues facing loan management processes, according to the report.