How to Properly Transition from Paper Files to a Loan Imaging System

Loan imaging systems make day-to-day operations more efficient and are popular with our banking clients, the majority of whom have already embraced paperless files or are in the process of transitioning. Paperless files are accessible from any location, which is helpful for banks with multiple branches. Furthermore, you can purge cumbersome files and archive outdated financial information.

But for all the benefits, transitioning to a loan imaging system can be daunting. We have witnessed banks successfully implement loan imaging systems and others that struggled throughout the entire process. If your bank is considering a loan imaging system there are three key elements to bear in mind to ensure your bank is successful from beginning to end.

Choosing Your Software

The most important element is to purchase the right software for your bank. There are innumerable software products available; however, not all of them are designed for a credit file. Do your due diligence, narrow down your preferences, and contact other banks for their feedback on specific software specifications.

Some imaging software systems lay out digital loan files like a paper file and use customizable tabs for each type of credit- making it easier to find documents. Other systems use a tickler system, which also simplifies the documentation tracking process. Understanding the strengths and weaknesses of the software will allow you to pick the software that best meets your bank’s needs.

Have the Right Personnel in Place

The process of imaging paper files can be overwhelming; therefore, it is crucial to have only experienced loan personnel imaging the files. They understand the minute details and organizational structure of a credit file and are less likely to make mistakes.

Quality Control

Mistakes are unavoidable, so the final element is to designate a quality control team during the imaging conversion. The team should ensure documents are properly labeled, scanned into the right category and legible. We have seen cases in which documents were scanned under the wrong category (insurance policy under title policy), they did not include a date or year, or the documents were scanned upside down.    

In summary, integrating a loan imaging system is a positive long-term decision for any bank. When your bank decides to transition to paperless files pick an imaging system that fits your bank’s needs. Talk to other banks that have purchased the same product to ensure they are satisfied. Select the right personnel to manage the project and appoint a team to oversee quality control in the back end.