May 21, 2013, Mt. Prospect, IL – Despite the rise in electronic banking, checks still remain a common and highly-used form of payment. In fact, a recent BAI study revealed that almost 60 percent of consumers still use checks as a form of payment, and a new survey from Aite Group showed that 70 percent of business-to-business transactions rely on checks.
While many credit unions (CUs) are focusing on offering electronic deposit or mobile banking options, they still need to keep in mind that checks play an important role in their members’ lives. Cummins Allison, the leading innovator and provider of coin, currency and check handling solutions, explains how new check processing technology makes it easier than ever for CUs to accept and process checks in-house – even at the teller window.
Address Check Processing Pain-Points
With their strong focus on customer service, CUs aim to accommodate their members’ preferences, but this accommodation must be in balance with the business requirement of controlling or reducing costs. Unfortunately, the cost of processing paper checks is increasing, and traditional check processing solutions that use a currency processor and horseshoe-type scanner result in multiple challenges.
CUs using this traditional check processing solution regularly deal with pain points such as: increased preparation time, slow processing speed, poor handling of wrinkled document, equipment jams, large footprint from two machines and off-site repairs for unreliable equipment. This outdated technology can also significantly increase the branch capture process --- in some cases the process can take 30-40 minutes per batch of checks.
New Technology Delivers Operational Improvements
Clearly, checks still play a prominent role in payment processes and transactions. It's critical for organizations to still accept these payments, andnew technology may help CUs more efficiently process them now and well into the future.
By converting to new check processing equipment, CUs can realize three to four times faster check processing at the teller station and, potentially, the elimination of full or part-time positions dedicated solely to processing each day’s check deposits. Other opportunities for direct cost savings include: decreased or reduced rescanning, fewer Day 2 errors, faster end-of-day closings, a single machine with a smaller total footprint, and reduced equipment down time and maintenance costs.
Realize the True Benefits of Branch Capture
By moving to teller capture with the application of new technology, CUs can increase speed and accuracy of check and deposit processing. By implementing advanced check processing technology that captures checks at the earliest point of presentment – the teller line – CUs can offer the most efficient form of branch capture. Two-in-one processing equipment also accommodates branch capture as complete deposits; checks, currency and transaction-related documents can be processed in the back counter or at the teller line in minutes.
Like it or not, checks are not going away anytime soon. It’s imperative that credit unions update their approach to check processing and make it a priority to acquire the most advanced technology solutions. To learn more about how your organization can measurably improve its check processing operations, visit www.cumminsallison.com/checks.
About Cummins Allison
Cummins Allison is a global leader in developing technologies which count, sort and authenticate currency. The U.S.-based company has a 125-year heritage of leadership in technology and product innovation and currently serves the majority of financial institutions worldwide, as well as leading organizations in retail, casinos, law enforcement and government. The company holds more than 350 U.S. patents and has ongoing research and development (R&D) investments double the industry average. Cummins Allison is headquartered near Chicago, IL with R&D centers near San Diego, CA and Philadelphia, PA and wholly owned subsidiaries in Canada, the United Kingdom, Ireland, Germany and France. The company also has an extensive sales and service network with more than 50 offices in North America and is represented in over 70 countries. For more information, visitwww.cumminsallison.com.
Carol Moore – Vice President Marketing
Cummins Allison Corp.
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