The Emergence of Check Imaging Technologies and the Impacts of to Banks and Consumer and Small Business Customers
Thanks in part to advancements in check imaging technology; financial institutions have an opportunity to make major changes to outdated check processing systems. Bank executives are weighing the benefits with the potential risks of updating a system that has been virtually untouched since the 1970’s.
These emerging imaging technologies have the potential to remove the high transportations costs associated with transporting physical checks and reduce the flow time (float) it takes between check deposit and funds availability.
This paper …show more content…
The utilization of check imaging truncation allows banks to discontinue the need to move physical checks across branches to check processing facilities. For the customer, this reduces the time between deposit and funds availability. This also reduces unnecessary risks that might delay a check from being processed. For the bank, this saves the costs that come with the transportation of the checks. This also eliminates the risk the bank is exposed to by the transportation runs needed each day. Lastly, the digital copies of checks are much more secured than they would be if they were physically delivered. The truncation process allows for much more robust security measures and organization for all checks deposited with the bank.
The check truncation process can be applied in a variety of ways. The most popular ways to utilize check-imaging technology is through Banking Center Remote Capture (BCRC), Remote Deposit Capture for Small Businesses (RDC), and Mobile Banking. Each of these solutions offer unprecedented ways for customers to enter the check depositing process system for their banking needs, and offer the bank an opportunity to eliminate the bottleneck in the check processing system. See exhibit 3 for the process flow with the addition of the most common imaging technologies used to image checks. This