ISSUE / BACKGROUND

Currently, ***** Bank houses approximately 135,000 active loan files in 13 different locations across the corporation. Facilities within the three loan sales support areas are at or approaching their maximum storage capacity. With the acquisition we will have to absorb another 56,000 loan files which are housed at the 23 community banks. Consequently, we are working with the Facilities management area to design a Loan Records area to be located in the South Building basement. This facility will house approximately 171,000 loan files (20,000 mortgage files to be consolidated). It is assumed that all of these locations employ various methodologies when organizing their files. With this in mind, our consolidation efforts should revolve around the following objectives.

  • Control Risk - by reducing / identifying missing files and key documentation.
  • Provide Quality Service - by creating an environment that provides easy access to documentation
  • Reduce Costs - by designing and organizing an automated environment for file storage.

Several solutions were researched, however, faced with the reality that an "imaging solution" is to far off on the horizon, we have identified a vendor / technology that would allow us to automate and still benefit from imaging solutions in the future.

  • Located in Grand Rapids, Michigan, VanLoozen Systems is a records management company specializing in the design and implementation of automated systems for folder labeling and barcode tracking.  Their list of clients includes organizations that are typically paper intensive (exhibit C).

PURPOSE / RATIONALE

Among the advantages received with this transaction are:

Reducing Risk - Immediate identification of missing loan documents as loan files are scanned before they are consolidated from various locations.

Improved Service
- Staff will no longer have to physically go look for a file to see if it is in, rather they will look on a database to identify if it is in and where it is located.

Improved Efficiencies
- Filing time ( i.e., consolidation efforts) are cut in half as staff walks to a designated location to locate or file a document rather than interpreting a complex numbering scheme

Imaging
Functionality - Barcode system is a logical step towards preparing for imaging as file information is captured electronically.

Reduced Training Costs
- New or temporary staff can immediately be productive as no complex numbering scheme has to be memorized. Also, reducing the amount of loans which are misfiled

IMPACT:

I have split these costs into three categories consisting of Labor/Supplies, Software and Hardware (The hardware cost does not include a server to store the database, as it is not determined if we could use the existing super server for this application).  In addition, by contracting for labor costs to complete the project, we would receive a project manager who would oversee the implementation including training of staff.
This cost analysis does not include any costs for storage equipment, as I will need our Facilities area to estimate those expenses as we proceed.  However, the barcode solution does give us flexibility in utilizing various forms of storage equipment, which should help keep these costs down.

CONCLUSION:

VanLoozen currently has an opening in their schedule for the October / November time frame. This could work well with our facilities schedule (November) as well as the record retention project currently being coordinated, I did attend the kickoff meeting and requested my area be prioritized on their project. After your review of this information and providing you concur, I would like to speak to you regarding getting an analyst assigned, as well as allowing me to proceed with contract negotiations.