Getting the Picture with Check Imaging

T he future is clear: Check imaging is no longer just for the big banks.

Check imaging is an efficient, cost-effective, electronic replacement for paper check storage. The information is virtually available at your fingertips.

On the average, check imaging can save financial institutions up to 60 percent in postage cost alone. Banks are becoming more profitable by reducing labor associated with sorting, filing and statement rendering; reducing misfiling; reducing research time; and eliminating microfilm expenses. And these savings are just the tip of the iceberg.

Checks represent 80 percent of non-cash payments and have been growing in number at a rate of 3 to 4 percent annually. Eighty-eight percent of U.S. adults (174 million people) have checking accounts. Today, banks process more than 63 billion checks each year.

In addition, the current paper-based check processing system has its limitations. There are no further productivity gains to be had using traditional technologies; check reader/sorters are unlikely to be able to move checks any faster without causing physical damage to the paper checks.

The answer to eliminating these concerns rests in image and communications technologies. Processing a check, utilizing imaging and electronic transport, costs less and also greatly reduces the likelihood of fraud, particularly in the areas of deposit risk, signature verification and check tampering.

A major benefit will be achieved by reducing or potentially eliminating transportation costs. The combination of advanced technologies for authentication and verification will greatly reduce the likelihood of fraud occurring, particularly in the areas of deposit risk, signature verification and check tampering. Moving from a paper-based system to an electronic infrastructure raises many issues relating to standards for interoperability, authentication and image quality.

These benefits can only be reached through nationwide, interoperable check imaging that provides for truncation of paper checks at the point-of-sale.