Home|Nintex Blog|What to do when a loan officer leaves

What to do when a loan officer leaves

According to the Bureau of Labor Statistics, the median length of employee tenure is 4.2 years. The retention rate is even lower than that in the finance industry, where Insperity reports a turnover of 17.4 percent each year.

With this in mind, financial institutions should prepare for workforce attrition similarily to how they prepare for regulations. It’s an unavoidable fact of life – or business – due to the following factors:

  • Banks are willing to pay a premium for talented employees, which increases hiring competition
  • Economic ups and downs may lead to mergers and acquisitions in the financial services industry
  • High-pressure occupations can cause burn out.

With data being a critical part of the banking world, what happens when the person in charge of that valuable information, such as a loan officer, leaves the company? Bridging the human resources and data gap is important to allow banking operations to remain firmly focused on its considerable day-to-day obligations.

Transition & transfer

When a loan officer leaves, Robotic Process Automation (RPA) software can be used to reassign their accounts to another officer. Imagine the difference in time a financial institution can save by using a software program to enter hundreds of loan (or deposit) accounts to change officer or responsibility codes.

Some core vendors offer mass account maintenance programs to handle this situation, but it is usually a one-to-one proposition. For example, take 500 affected accounts and change each one from Officer Code 1 to Officer Code 2. Also, most of these third-party service providers charge per account, which can easily add up.

With RPA software, the bank’s operations staff can create an if/then script that reads and reacts to account criteria. For example, instead of a simple account reassignment from Officer 1 to Officer 2, the data automation tool can activate the following search and send: if the account is under Officer 1 and located in Branch 50 and the loan amount is less than $100,000 then assign it to Officer 2. In fact, any number of data variables can be factored into account reassignment.

Also, instead of an expensive core vendor service that you use once, the RPA software script is reusable. The script is yours, so you can utilize it and modify it as many times as you like.

As the selling arm of a bank, loan officers serve as liaisons between the financial institution and the loan applicant. This means they have both customer service and data-intensive roles. When there’s loan officer turnover in the highly competitive and volatile financial services industry, RPA software can cover the account maintenance and data transfer needs so that a bank can keep its personnel focused on critical customer service and revenue generation.



For more information, read and download our whitepaper “4 Reasons why an automated employee is right for your financial institution.”



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