Escrow, in short is an arrangement where a neutral third party is responsible for safekeeping the escrow assets such as funds, securities, IP, documents etc. to be released only when certain conditions are fulfilled by the parties entering into contract. Escrows can range from few days to few years depending on the nature of the deal. Banks are one of the primary escrow service providers globally and since they have presence in different geographies, they are preferred over other organizations to be the escrow agents.
Presently, most banks do not have a sophisticated system to manage their escrow business end to end and hence, the problem that usually arises with escrow management is the amount of manual intervention required, making it a cumbersome and tedious process. Devoid of the system, a lot of these contracts are managed through spreadsheets and other locally (in house) developed applications. Banks require to closely monitor escrow accounts on a regular basis to ensure that the terms of the agreement are followed properly. Any breach could lead to Financial loss, reputation loss and could also have regulatory and legal implications. Additionally, there is no integration with other application within the banks which effectively just makes the current application as a data repository.
This is where CAPIOT’s escrow management, XCRO comes into play. Now what makes this product stand out is that it is a one stop solution to handle end-to-end escrow deals. Let’s look into the features that make XCRO unique and a must have solution:
- Deal Life cycle – One of the major issues with any banks working manually on escrow accounts is the longevity of the contract. It may so happen that the operations team member handling escrows might keep on changing and every time, there needs to be a knowledge transfer session to get acquainted with the accounts. Any problem in the handover and you can have a major crisis at hand. With XCRO, you can forget about having such issues because the automation takes care of the complete contract through deal creation to execution and reporting.
- Rule Engine – When banks undertake escrows, they usually have the spreadsheets running on macros according to the clauses provided in the contract. Now, for this, the banks need to have trained professionals to read and create macros according to the contract payment, retention or surplus. However, if the nature of the contract complicates to include two or all of the parameters along with the product type and the financing mechanism, banks are running a risk of data mismanagement or erroneous data uploads if not scrutinized properly. With XCRO, these operations become easier and manageable with fewer entries because the rule engine is in-built in the system and does not require any external help to oversee its fulfillment.
- Core Integration – One of the prime problems with having escrow data managed on excel is the integration with the core banking system, which is absent. XCRO, however can be seamlessly connected with various systems like CBS, DMS, LDAP without any major changes to either software, making XCRO faster to implement.
- Notifications – When long term contracts are into play, the staff ideally would need an alert system to help them know when any milestone has reached. With spreadsheets, banks have to rely on heavy manual monitoring to make sure that they do not miss out on any important event. XCRO on the other hand, has an inbuilt notification system with integration to email and SMS that makes it impossible to miss any milestone event. Once set, these notifications are triggered to inform the parties involved in the deal and the bank contacts like Relationship Manager and Product Sales Manager involved in the deal as well of any important changes in the system or any requisites from the holder’s end.
- Compliance – With a clear tracking of audit trails, XCRO allows all the parties involved to have complete visibility on all their transactions. Changes made by anyone is logged against their name and the change allowing no mismanagement of the account. Every step of the setup including deal origination, payments, alteration to deal, etc. in XCRO requires maker checker to ensure that the data being set up is accurate. After the data is fed and signed off by the maker – checker there is no manual intervention.
XCRO from CAPIOT is a top of the class escrow management software that not only improves productivity but also enhances customer experience by automation and digitization. To know more about the solution, drop in an email at firstname.lastname@example.org. For a free demo, give us a call at +91 77778- 88637.