RIM in Banking: How to Make Your Loan Vault More Efficient – Part 2

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One of the challenges in managing a physical loans inventory is that each file requires multiple physical “touches” throughout its lifecycle. All of this manual work creates inefficiency and introduces risk. Fortunately, both of these issues are easily avoided by implementing best practices for managing loan inventories.

In last week’s blog post we introduced three best practices to make your loan vault more efficient: using a loan inventory management software tool, using the appropriate manila file folders, and color-coded file labels.

This week, we follow that up with four more best practices.

Seven High-Performance Practices for Physical Loan Inventory Management – Continued

4. Barcoded folder labels

barcode file tracking

Barcoded labels connect your loan files and documents directly to your loan inventory software system. Simply scan the loan file to check it in or out and to learn more about its contents.

Why do it?

  • Barcodes increase processing speed during loan onboarding and certification.
  • Barcodes greatly reduce incidences of lost files.

5. Uniform file folders

color-coded files

All folders should have the same design, numbering system and label.

Why do it?

  • A consistent approach to file folders increases processing speed and reduces misfiles.

6. Terminal-digit filing

terminal digit filing

With terminal-digit filing, loans are placed in their own separate areas of the vault based on the last 2 (or more) digits in the loan file number.

Why do it?

  • Terminal-digit filing increases filing speed when retrieving or re-filing loans. Without terminal-digit filing, all of the most recent loans end up filed in the same area, leading to worker bottlenecks.
  • Terminal-digit filing also reduces the need for time-consuming and expensive back-shifting of files as your loan inventory turns over.

7. Open-shelf filing

open shelf filing

Simple open shelving, with no drawers to open and no cabinets to slide, is the most efficient choice for loan operations.

Why do it?

  • Open shelving offers the fastest access for workers.
  • Adjustable shelf heights allow you to maximize your use of space and accommodate more loans.

Small Adjustments = A Huge Overall Impact

When multiplied across thousands or millions of document-touches per year, these best practices can have a huge collective impact on the efficiency and profitability your loan operations.

By employing these best practices, our clients have noted significant reductions in:

  • file onboarding times
  • file retrieval times
  • document misfiles
  • missing and lost loan documents
  • complications during the offloading process.

Next Steps

Get help making your loan vault more efficient.

Learn more about color-coded file systems in our white paper.

Discover TAB’s loan inventory management tool, TAB FusionRMS.


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