Article

Check 21's 'Top Ten'

FIS reap benefits of Check 21 at ATM, in the branch.

September 10, 2007

 

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Alan Walsh

• 10 - Protect banking continuity in case of disaster Electronic check imaging helps FIs remain operational in the event of a national catastrophe that makes transportation of bank documents impossible. Check 21 makes it possible for FIs to continue depositing and clearing checks, even if the physical transportation network is compromised.
• 9 - Reduce expenses Check 21 technology eliminates the expenses associated with transporting paper checks to processing sites and clearing houses. Additionally, electronic check imaging can help reduce float expenses, since collection delays caused by transportation or weather-related problems are no longer issues. Industry experts state that traditional ATM deposits with envelopes cost $1.70 per transaction; ATMs that image checks deposits reduce that cost to 40 cents per transaction.
• 8 - Reduce overhead Without paper checks to process, banks can eliminate many overhead or infrastructure expenses, such as processing costs and human resource and equipment expenses.
• 7 - Diminish fraud Reduce exposure to fraud with faster clearing and advanced check validation. Envelope-free ATM deposits also eliminate "empty envelope" deposits.
• 6 - Improve customer acquisition and retention Implementing Check 21 technology allows banks to differentiate and compete by offering remote-data-capture capabilities and/or enhanced image-based products and services customers want.
• 5 - Expand customer service The added ability to extend deposit deadlines helps banks provide better service and improved fund availability for customers. Enhanced transaction automation also frees branch staff to focus more of their efforts on servicing customers' needs.
• 4 - Enhance error resolution Because of electronic check imaging, banks are able to forward and restore images at other locations to address processing problems with individual deposits or even in full-scale contingency situations.
• 3 - Improve clearing times Since physical transportation to a processing location is eliminated, electronic checks enter the clearing process faster.
• 2 - Increase customer catisfaction and ATM use Customers want to control the interactions they have with their banks. Electronic check processing gives them more of what they want and increases customer transactions per ATM, changing the transaction mix to enhance the profitability of a bank's ATM channel.
• 1 - Transform the revenue model Migrating more customers to the ATM channel for appropriate transactions frees up branch employees, who can now spend more time selling services inside the branch.