Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

The Check 21 Act was implemented in 2004, enabling financial institutions the ability to exchange images of checks rather than paper or hard-copy versions. Since then, banks and credit unions have steadily flexed to meet the changing demands of their account holders - both consumers and corporates. Today there are many “deposit channels,” or points of capture, where an institution can acquire check images for processing, including both in-branch and remote locations. 

Rapid technological advancement has played an important role in the ongoing expansion of deposit channels. For example, the United States Census Bureau reported that smartphones were present in 84% of US households in 2018—a number that’s continued to expand in recent years, thus leading to the demand for mobile capture.

Examples of Deposit Channels

Supporting multiple deposit channels can help a financial institution provide streamlined banking experiences for customers or members. Here are common examples of deposit channels in today’s financial industry:

  • Self-Service Kiosks, ATM/ITM

    Some ATMs (automated teller machines) and ITMs (interactive teller machines) are image-enabled, providing account holders with a convenient, self-service solution for depositing checks—even outside of normal banking hours.

  • Mobile & Remote Deposit Capture

    Mobile and other remote deposit capture solutions allow customers or members to scan and deposit checks by using their smartphones and desktop scanners from the convenience of their home. 

  • Teller Capture

    With teller capture, front-line staff are empowered with technology for efficiently converting paper checks into electronic format and entering images into the payment stream for Day 1 processing.

  • Merchant & Corporate Capture

    Merchant capture typically involves the use of a computer, connected scanner, and digital banking software. The business user can scan multiple checks at once, saving time and administrative effort.

Batch Scanning / Capture

Prior to the development of modern deposit channels, financial institutions primarily relied on batch capture for check image acquisition. Batch scanning is a back-office function that involves capturing multiple check images at once.

Deposit channels also exist outside of traditional banks and credit unions. For example, check cashing services charge a fee in exchange for processing customers’ payments.

Managing Multiple Deposit Channels

Deposit channels have developed incrementally since the early 2000s, creating complex payment ecosystems for financial institutions. Deploying and maintaining a variety of deposit technologies is common, but doing so can lead to back-office inefficiency and risk. Solutions like Unify from Alogent seek to streamline deposit channels by applying the same business rules to all, while enabling convenient and consistent customer and member experiences.

Explore Alogent’s Innovation Hub for more banking definitions, blogs, videos, and other helpful resources.

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