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Check 21 Top Ten List

While the task of outfitting a bank with the technology necessary to meet Check 21's requirements may seem daunting, many banks haven't yet considered the positive financial impact these upgrades can have on their bank's business. However, many financial institutions have implemented branch image capture technologies and are already reaping the benefits.

As check imaging takes off in the U.S., the question on most retail bankers' minds isn't "if," but "when" to implement branch image capture technologies. Below are Check 21's Top Ten – a list of compelling reasons for financial institutions to invest sooner, rather than later, in technologies that help banks meet the near-term goals of Check 21 and enhance their competitiveness in the long run.

10 — Protect Banking Continuity in Case of Disaster
Electronic check imaging helps your bank remain operational in the event of a national catastrophe that makes transportation of bank documents impossible. Check 21 makes it possible for financial institutions to continue depositing and clearing checks even if the physical transportation network is compromised.

9 — Reduce Expenses
The technology also eliminates the expenses associated with transporting paper checks to processing sites and clearing houses. Additionally, electronic check imaging can help reduce float expenses, since there will no longer be collection delays caused by transportation or weather-related problems. Industry experts state that traditional ATM deposits with envelopes cost $1.70 per transaction; ATMs with a bulk check deposit feature reduce that cost to $0.40 per transaction.

8 — Reduce Overhead
Without paper checks to process, banks can eliminate many overhead or infrastructure expenses, such as processing costs, human resource expenses and equipment expenses.

7 — Diminish Fraud Exposure
Reduce exposure to fraud with faster clearing and advanced check validation. Envelope-free ATM deposits also eliminate fraudulent "empty envelope" deposits.

6 — Improve Customer Acquisition and Retention Through Compelling Product Offerings
Implementing this technology allows banks to differentiate and compete by offering remote data capture capabilities 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 Satisfaction and ATM Use
Customers want to control the interactions they have with their bank. Electronic check processing gives them more of what they want and increases customer transactions per ATM, changing the transaction mix to enhance profitability of a bank's ATM channel.

1 — Transform the Revenue Model
Migrating more customers to the ATM channel for appropriate transactions frees up employees who can spend more time selling services inside the branch.

Check 21 is a strong catalyst for change in the banking industry. Checks remain the largest non-cash payment option in the U.S., and American consumers continue to see checks as a critical payment mechanism.

To compete in today's rapidly changing banking industry, financial institutions, whether they are national, regional or local, must focus on three goals: acquiring new customers, retaining current customers and controlling costs. Banks that proactively invest in technologies that provide the means to meet these goals are the ones that will remain competitive tomorrow.

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