The Future Of Check Processing: A Transaction Level Approach
This article was originally published on Callahan and CreditUnions.com. Read the original article here.
As the industry continues to change, solutions are shifting toward transaction level check processing. This change is not about abandoning batch processing but rather improving overall operational efficiencies with an approach that offers a myriad of benefits for financial institutions.
The Enduring Importance Of Batch Processing
Batch processing is a mainstay for many. For decades, institutions have taken large volumes of transactions and reconciled them in the back office, allowing staff to attend to account holders at the teller line. While effective and compliant, batch processing can lend itself to unforeseen challenges and overhead costs, delaying downstream processes.
As the world becomes more digital and self-service channels become more prevalent, a newer approach to transaction processing has also emerged, bringing lower processing costs, reduced risks, and higher levels of efficiency gains.
Why Transaction Level Processing Is A Game Changer
Modern deposit automation solutions allow for items to be processed on a per-item or transaction level, eliminating dependency on batches. Processing at the point of capture allows for real-time image and data validation and enhanced fraud mitigation capabilities before reaching the back office.
Benefits For Financial Institutions Include:
- Faster Item Processing, Avoiding Delays Downstream: Transaction level processing allows a more modern approach, delivering faster access to funds and the ability to post in real-time. Time spent manually verifying and reconciling checks in the back office is significantly reduced, Day 1 and Day 2 workflows are automated, and employees are freed to provide more valuable services to account holders.
- Improved User Experiences: Allow all items to be treated the same regardless of deposit channel. This delivers a streamlined and consistent user experience — a transaction at the ATM is consistent with a deposit at the teller thanks to real-time image and data validations.
- Reduced Risk For Fraud: By performing image analytics at the point of capture, fraud can be addressed before transactions reach the back office. Depending on business rules, institutions can either make decisions on transactions immediately or defer them to a knowledge worker.
As banks and credit unions discover the benefits, the shift toward transaction level processing is expected to accelerate. Batch processing remains a vital component of check processing operations, but the adoption of transaction level processing indicates a step toward greater efficiency and innovation.
Discover Alogent’s deposits automation platform, Unify. With its single platform and centralized database, combined with real-time image and data validations, Unify ensures consistent transaction decisions across all channels and automates tasks that were previously manual or siloed for back-office employees. At the same time, account holders gain a true omni-channel approach — regardless of when or where they decide to bank.
Download: Unify product Datasheet
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