When expanding the overall approach to digitization, managing documents that are themselves financial assets is essential, but it requires a special process that exceeds the capabilities in most ECM systems.
Electronic vaulting—also referred to as asset management, e-vaulting, or simply vaulting—allows banks and lenders to preserve their chain of custody and legal control of the authoritative copy as required by law by using encryption security layers built into the system:
- Provenance: The first layer allows only the rightful owner of the loan/lease documents to access and initiate transfers of the authoritative copies to other parties.
- Transferability: The second layer is similar to blockchain in that it creates a chain of secure transaction records that identify a specific document instance and its location as the authoritative copy.
- Integrity: The third layer ensures that any change to the authoritative copy of the document is flagged as unauthorized.
- Privacy and Confidentiality: Throughout the lifecycle of transactions, ensure that privacy and confidentiality are maintained and tracked.