The transition to nCino’s Covenant Management and Servicing feature offers significant benefits, including improved efficiency, more effective portfolio management, and more. However, the migration process involves several key considerations, such as manual configuration, automation adjustments, and feature parity. In this article, we’ll review what Covenant Management & Servicing is, what it offers, and what to keep in mind when migrating.
What’s New with Covenant Management & Servicing?
Covenant Management and Servicing is an enhanced version and replacement of nCino’s pre-2023 Covenant Management feature, which we will refer to as Classic Covenant Management.
Covenant Management and Servicing can be broken out into two parts: Covenant Management, which introduces a new data model, an improved user interface, and a streamlined user experience. And Covenant Servicing, which is an optional addition to the Covenant Management feature that provides Covenant Compliance capabilities that Classic Covenant Management did not include. This includes new Covenant Compliance automation, Priority Manager compatibility, and Document Manager synchronization.
Why Upgrade to Covenant Management & Servicing?
Covenant Management & Servicing is a welcome improvement to how Financial Institutions manage Covenant tracking in nCino. The feature comes with an improved User Interface, a more intuitive data model for Portfolio Managers, and automation that makes reporting from Covenant Compliance seamless. Plus, with nCino’s deprecation of Classic Covenant Management in Spring 2024 and the end support coming in Fall 2025, it’s better to start the migration sooner rather than later to take advantage of the enhanced efficiencies.
Navigating the Migration to Covenant Management & Servicing
While the upgrade offers significant benefits, there are several things to consider when migrating to Covenant Management & Servicing:
- Manual Configuration Needed: There is no direct upgrade from Classic Covenant Management to Covenant Servicing. Manual steps and data updates are required to ensure the successful migration of existing records into the new data model.
- Automation Adjustments: Custom automation may need to be modified or replaced with nCino’s managed automation.
- Data Quality Impacts: If there are existing data quality issues with Covenants, it has the potential to cause even more issues when upgrading.
- Timeline: The upgrade and migration process can take up to several weeks to implement, test, and deploy to users.
- Report Updates: Reports may need to be adjusted due to changes in how Covenant Compliance records are created. Under the Classic Covenant Management feature, Covenant Compliance records are typically created at pre-defined intervals prior to the Next Evaluation Date. With the new feature, Covenant Compliance records are created immediately when a Covenant becomes Active. If your institution is using reports for covenant compliance, you may need to filter reports to show only those with due dates in the next 30 days.
- Feature Parity: Covenant Servicing does not yet support Automated Covenant Testing (ACT) via Spreads or Document Preparation, and some common processes do not yet have out-of-the-box solutions.
How Can Lucro Help?
We understand the challenges – and opportunities – associated with upgrading to nCino’s Covenant Management and Servicing. Our team has experience managing the upgrade to Covenant Management and Servicing and can help speed up delivery time while ensuring a successful go-live. More specifically, we can help with:
- Data Migration: Effortlessly transfer your existing covenant data to the new data model with our pre-built Covenant Servicing migration scripts.
- Business Process Design: Review your current covenant management processes and identify potential gaps or opportunities to enhance with the new automation and workflows.
- Adoption: Provide training and change management to help users maximize the benefits of the upgraded experience.
Want to learn more about how Lucro can help your institution with the upgrade to Covenant Management & Servicing? Schedule a meeting with us!
Lucro is a boutique consulting firm focused on helping Financial Institutions unlock the full potential of the nCino and Salesforce platform. Learn more about who we are and what we do, or follow us on LinkedIn.
