Digital promissory notes process
trace:original digital promissory notes remains digital throughout the lifespan of the document. Follow the link below to see a detailed process for each stage of the promissory notes process.
- The customer files a loan application with the bank e.g. in the customer portal, with subsequent processing, scooring and credit application/credit limit allocation in the bank’s normal systems
- When the final loan documentation is concluded, “digital” can be chosen as output option, the PN is created as a digital PDF document by using the trace:original ‘digital printer’ installed with the bank. The PN will be market as ‘digital’ in the loan management system.
- Loan application, KYC documentation collateral can be attached to or referenced in dPN.
- The customer/borrower electronically signs the dPN in the bank’s customer portal, through e-mail or in a branch office
- The storage of the finalised dPN will be made in the bank’s digital vault
- The loan is manged in the current loan system according to current procedures
- If unscheduled instalments are made by the borrower, these can (and should) be noted in the dPN. This can be performed trough automated procedures
- Changes of terms and conditions can easily be done by the bank by adding the new terms and conditions to the dPN. If acceptance and signing is required by the customer/borrower, the new version of the dPN can be electronically signed in the bank’s customer portal, through e-mail or in a branch office
- If needed additional documentation can again be attached or referenced in the dPN
- Ledger data can be reconciled against actual assets in the digital vault. This can be done at any intervals preferred by the bank
- Reconciliation can also be performed as an automated process in compliance with BCBS 239 , “Principles for effective risk data aggregation and risk reporting”
- Select assets for sale
- Request transfer-key (a public key ) from the acquiring entity
- Endorse the dPNs and assign the selected dPNs to the acquirers key
- Transfer the assets (the documents) to the acquirer