A Hidden Financial and Operational Impact In the age of technology, financial institutions are often looking for ways to automate processes and make them more cost-efficient. However, when it comes to check processing, many banks and credit unions who are still using the same solutions implemented at the time of Check 21 may be unaware of the underlying financial and operational impact. The journey of a check can involve multiple software solutions and valuable resources from personnel to IT — not to mention the unseen costs associated with fraud, duplicates and returns. This overhead amplifies with every point of presentment, from in-branch workflows to remote channels. In this article, we dive deeper into these points and efficiency roadblocks and discuss how automation and modern deposit platforms reduce expenses, as well as ensure your institution is prepared to address the last mile of check processing. UNSEEN COSTS IN TODAY’S EXISTING CHECK PROCESSING WAYS Added expenses associated with deposit acquisition and image processing revolve around the negotiability of items and the probability that the check will flow through the processing system without any flagged issues that cause it to be routed through additional solutions and image quality (IQA) or usability (IUA) analysis. Fraud, duplicates and returns contribute to hard costs in the following ways: • Fraud: Check fraud, a continued and ever-changing obstacle for banks and credit unions, not only risks account holder loyalty and the reputation of the financial institution but can lead to monetary losses, which impact the bottom line. By Jason Schwabline Chief Strategy Officer, Alogent, ICBC Associate Member 32 | INDEPENDENT REPORT
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