A group of us recently attended the 2007 BAI show in Orlando. In addition to being a great excuse to get
away from the cold Northeast (and have an opportunity to get mired in the Jet
Blue Valentine’s day misadventure), it was a fascinating conference about the
current state of check imaging. Given
many of the leading banks and financial institutions as well as bank software
vendors use our products, it was also a great opportunity to meet with some of
our largest customers.
The pace of replacing checks with images has radically
accelerated in the past six months as the Check 21 Truncation Act has seen more
widespread implementation. At this
point, more than 50% of all checks in the United States are scanned at or
near the point of deposit. Thereafter
the paper checks are stored and only the images are transmitted between the
banks and their customers.
Benefits
The benefits to the banks are reduced handling costs because
the burden of transporting checks in Leer jets around the country to be cleared
has been radically diminished. Additionally they’ve achieved greater security and redundancy since check
images are relatively easy to centrally protect and archive. The benefits to their customers are faster
processing and access to funds and the ability to receive their bank statements
on-line, including images of the checks they’ve written.
How does this apply
to you?
Well, whether dealing with checks or other records,
replacing paper documents with images is now the mainstream. If documents as critical as checks can be
replaced with electronic facsimiles then most other documents can be as
well. The future is here.
Is your organization doing all it can to incorporate paper
and electronic documents into one system that provides easy but secure access
to all such data? Systems now exist to
allow you to seamlessly work with both scanned documents and electronic documents
such as MS Office and Acrobat files.
What to Avoid?
One overriding theme of all the financial institutions
speaking at the conference was that choosing the right vendor for their imaging
needs was absolutely critical. All of
them had stories of being held back by vendors who weren’t ready for their
latest requirements or who created partially or wholly erroneous images.
Avoiding Bad Data
Like most scanned documents, check images include
metadata. This metadata includes various
kinds of fields including account information, scan date, scan location, type
of document, type of image, indexing data, number of pages and other kinds of
information. There were many stories of
vendors that scrambled data, placing information in the wrong fields. (Our own experience at Snowbound over the
years bears this out – we discover many images corrupted through misinterpreted
specifications.)
Other stories were passed around about vendors who may have
been specialists in scanning but not in image manipulation and who generated
poor quality or incomplete images. Looking at some of the images from an imaging expert’s perspective, it
was obvious to us that many suppliers didn’t use or know how to apply tricks of
the trade that make images more readable. And if you’ve ever looked at the back of the check
after scanning, that’s critical.
Conclusion
Not all vendors are created equal. Select carefully for a vendor who fully
understands what you need and has the experience and expertise to provide you
with the best possible solution. It’s a
competitive marketplace – choose the best vendors and tools to insure your
success.
-Simon
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