A third of the top 25 U.S. retail banks have taken check image all the way to the teller line, and another third will likely do so in the next two years, says Celent in a new study.

Since the passage of Check 21 in 2004, U.S. financial institutions of all sizes raced to implement image exchange and distributed capture projects as a way to enjoy noteworthy operational efficiencies. Most popular was branch image capture (the installation of a back counter workstation and capture device), now in approximately 85% of institutions. Though they once loved branch capture for the transportation savings it afforded, financial institutions are gradually having buyers’ remorse with branch capture and are thinking about bringing image capture to the teller line, Celent says.

According to the report, more than 700 U.S. financial institutions have implemented teller capture as a means to extract additional operational savings while improving the customer experience in the branch. As a percentage, the largest banks have led the way, with a third having already taken capture to the teller line.

 

 

“Most financial institutions responded to Check 21 with a back counter approach to branch capture,” says Bob Meara, senior analyst with Celent’s Banking Group and author of the report. “It was the path of least resistance, but it also brought administrative work into the branch network. Now, with a growing need to improve branch efficiency and effectiveness, more banks are exploring teller capture.”

Celent offers these solution recommendations for financial institutions considering a teller capture initiative:

• Remove back counter capture equipment. All but the largest commercial deposits can be more effectively handled at the front counter. Deferred capture (during busy periods) doesn’t have to be done at the back counter.

• Refresh the teller system if needed. Banks that treat a teller refresh as a separate project needlessly duplicate effort.

• Speed saves. The cost premium for faster bulk feed scanners is a modest investment for faster teller transactions.

Celent offers these implementation recommendations for financial institutions considering a teller capture initiative.

 

Workflow. The most successful teller capture projects result from rigorous analysis of transaction workflow as part of requirements definition. The project is an opportunity for process redesign, not simply doing things the same old way.

 

 

Reset staff capacity. Workforce optimization solutions should be used to model resulting staff capacity needs following a teller capture initiative. Savings can be substantial.

 

 

Account for ineligible items. Financial institutions need a plan for nonconforming images and items ineligible for Check 21 clearing and settlement.

 

 

Put image analytics under the microscope. Image analytics are the heart of teller capture systems. Their care and feeding determine system performance like nothing else.

 

 

Virtualize documents. Make the best use of virtual documents and redesign any remaining printed documents for image efficiency.

 

 

Take risk management to the teller line. Duplicate detection, positive pay verification, and other risk management tools can be invoked at the teller line based on business rules. These important mechanisms don’t need to wait until day 2.

 

 

http://www.celent.com/reports/taking-it-teller-line-considerations-implementing-teller-image-capture