Loan processing

RFID, as we all know is now a recognized technology used by variety of industry for tracking a variety of assets. But the majority of the use is to track movement of items from manufacturing companies, to warehouses and to retail outlets.

Problem in Banks

RFID technology companies are applying the technique to new sectors. RFID is now used in banks to track files! We all think that we are moving towards a paperless world but the importance of paper has not ceased. Majority of banks still want loan applications and supporting documents in paper format. The loan applications move from department to department before the application is approved or rejected. Once, approved more people are involved for collecting the interest and principal from the customer. Legal and tax departments too are involved. The banks’ insurance company and the local administration can also want to have a look at the files. The file would finally be stored in a storage room at the bank head office. Under this scenario, it becomes difficult to track the location of the file. Bank employees waste huge amounts of time in determining who of their colleagues is in possession of a particular file or is the file already sent to head office store room.

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