Zions Bank Standardizes Charge-Off Processes and Improves Reporting with RECOVERY™
Zions Bancorporation, with assets of approximately $52 billion, is one of the nation’s premier financial services companies, operating approximately 500 offices in 10 Western and Southwestern states. The bank, a longtime user of Shaw Systems’ COMMERCIAL™ product, needed to upgrade its recovery system due to the following issues:
- Processes for charging off uncollectible loans of all kinds were not consistent between bank affiliates or different loan types. Each affiliate’s processes were different from each other, resulting in duplication of effort and confusing requirements in each of the affiliate banks and in the Retail Loan Center.
- The reproduction of information contained in various systems had to be entered manually into charge-off systems and/or numerous applications such as Excel spreadsheets and Access databases held in branch or affiliate offices. Most of the charge-off amounts were then entered manually into the General Ledger.
- Management was also overwhelmed by the scores of management reports from each system and each affiliate’s manual reports.
The functionality of Shaw’s RECOVERY product, paired with the remarkable 35-year relationship between the two companies, helped Zions make the decision to implement the system. “We found very few other applications that handled Recovery loans, and Shaw is a trusted vendor of our Commercial Loan system,” said Ted Lloyd, Vice President and Recovery Systems Manager.
Today RECOVERY is the system of record for all Zions bank subsidiaries for managing post-charge-off accounts, and the staff has seen the following improvements:
Standardized processes used by all of its affiliate banks to charge off loans
Improved financial reporting and regulatory reporting, including future Basel mandates
Cradle-to-grave tracking of charge-offs.
Zions Bank uses RECOVERY to capture and analyze all credit product types, including Commercial, Consumer, Construction, Overdrafts, Mortgages, Leasing, Flooring, Bankcard, and Credit Lines.
“By far the most beneficial functionality of RECOVERY is the ability to create multiple shadow accounts and propagate payments to multiple accounts from one payment,” said Lloyd. “This makes keeping track of re-negotiated, government-backed, and participation loans so much easier. It also means that these loans are always accurate, even if we have to “fall back” to use the original contracted loan balances.”
“I’m also impressed with Shaw’s client support,” Lloyd added. “They are always responsive to our requests and consistently work hard to help us achieve our objectives.”