By : Andrew Short
November 23, 2016 03:00 AM
With such rapid changes occurring in technology, habits and customer expectations in the payments sector, financial institutions should always be looking for ways to maximize the efficiency of their processes and reduce costs.
One way of achieving these benefits is through check and image processing, which can help your business save money and provide a more agile, convenient service by moving deposits away from the branch and onto digital channels.
How it works
By enabling check deposits from any location at any time, check and image processing can help you to make deposits much easier for your customers while enhancing your own potential to generate revenue, cut costs and reduce the risk of fraud.
There are several functions that help to make check and image processing possible, one of the most significant of which is remote deposit capture (RDC). This allows customers to scan checks and send the scanned image to their bank for processing and clearing.
Solutions such as NCR's Aptra Passport for Mobile and Mobile Deposit allow users to scan checks using their mobile phone camera, delivering benefits including maximum convenience for customers and better availability of funds, which will contribute to brand loyalty. These services can also improve security and help to fight fraud by removing the need for people to carry around paper checks.
When it comes to managing transactions completed through RDC and payment imaging, it can prove highly beneficial to use a single platform to collect and organize all deposits. These systems can be integrated into your existing infrastructure and guarantee security from the moment the check is deposited to processing and completion.
The potential of RDC for businesses
Companies looking for ways to boost the efficiency of their day-to-day operations while cutting costs can gain some significant advantages from commercial and small business RDC solutions. These services allow commercial customers to complete check deposits using desktop scanners, with no need to leave their business premises.
Research has shown that, while the availability of new transaction channels has brought an inevitable decline in check use, this remains an extremely important payment method, particularly for commercial organizations.
The 2016 Electronic Payments Survey by the Association for Financial Professionals (AFP) and J.P. Morgan showed that checks continue to account for the majority of business-to-business (B2B) payments in the US, despite a considerable decline in use of this channel over the past 12 years. This year, 51 percent of all B2B payments have been completed by check, up slightly from 50 percent in 2013 but down from 67 percent in 2010, 74 percent in 2007 and 81 percent in 2004.
The AFP noted that the slight increase in check use this year represents a "definite break in the historical trend", which it said was "somewhat surprising".
Businesses and consumers have more choice than ever when it comes to completing financial transactions, but as long as checks continue to hold a prominent place in the payments ecosystem, there will be value to be gained from versatile, mutually beneficial solutions like image processing and RDC.