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TELLER CAPTURE Imaging in 2012: A teller capture renaissance |
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Branch image capture adoption is
now nearly ubiquitous. A growing number of financial institutions are bringing
image capture to the teller line, and to a lesser extent, to the ATM, according
to Celent.
"With more financial institutions
rethinking the branch channel, teller capture is enjoying a renaissance," says
Bob Meara, senior analyst and author of the report. "It is being installed to
meet both customer service and operations goals."
Fueled by near ubiquitous image
exchange adoption and the increasing cost of processing paper checks, branch
capture solutions have been installed or are being installed at nine out of ten
financial institutions. As traditional paper check processing infrastructures
are dismantled, distributed capture models will become a practical necessity
among the remaining institutions.
Celent expects a 98% adoption rate
of branch and/or teller capture solutions within the next two years. Image ATM
adoption will be far more measured by comparison. For most financial
institutions, the ATM channel will be the last domino to fall in their image
migration.
Key findings of the report include:
· In the past few years, distributed capture has
moved from being an item processing phenomenon to being in the mainstream of
retail banking, taking a prominent spot in both branch and ATM channels. Over
the past two years, financial institution adoption has saturated, with just
over 600 financial institutions installing some form of branch capture. The
continued growth in deployed check scanners despite this saturation stems from
financial institutions moving from a back counter, deferred capture workflow to
a teller capture model.
· Fueled by nearly ubiquitous image exchange
adoption and the increasing cost of processing paper checks, 93% of U.S.
financial institutions now have branch capture solutions completed or in
progress. As traditional paper check processing infrastructures are dismantled,
distributed capture models have become a practical necessity among the
remaining institutions. Celent expects that 98% of US financial institutions
will have implemented branch or teller capture solutions across some or all
branches within the next three years. The bulk of new activity will be at the
teller line, a teller capture renaissance.
· Distributed capture has seen broad-based
adoption, but growth continues, and the manner of adoption continues to evolve.
There is significant variation among financial institutions. Smaller financial
institutions are overwhelmingly choosing enterprisewide approaches offering
consistent consumer experiences and operating procedures among branches and
ATMs. Larger U.S.
banks-particularly the top 50 or so-have chosen incremental approaches in an
attempt to manage cost and complexity in an ever-changing check processing
environment. Many banks are learning as they go, balancing elevated exception
rates and branch training requirements against rising paper processing and
clearing costs. The gradual, but inexorable trend, in Celent's opinion, will
see the majority of financial institutions truncating checks at the teller
line. A short while ago, this was not evident, but teller capture has plenty of
runway left.
· Image ATM adoption remains measured. For most
financial institutions, the ATM channel will be the last domino to fall in
their image migration. Others will opt out of imaging for on-premise ATMs,
choosing to pay branch staff to do the imaging instead. The relatively few
banks placing image ATM on the front burner are doing so to improve the
customer experience with the ATM channel. They're not looking back, despite the
relatively high cost. Many smaller financial institutions, however, may opt out
of image ATMs in whole or in part in favor of mobile RDC.
· The biggest drama will be with desktop TWAIN and
mobile RDC as multiple large banks announce products. Celent expects the
growing acceptance of non-MICR capture devices to continue alongside a general
calm related to RDC risk. The fear, uncertainty, and doubt ushered in by the
FFIEC guidance will subside as banks get audits behind them and experience low
levels of RDC-inflicted losses. Then, observing a growing number of competitive
initiatives, more financial institutions will investigate and ultimately deploy
solutions. This will occur as banks continue to struggle with branch channel
profitability. In this context, a minority of banks will grasp RDC as a
self-service channel capable of displacing significant branch transactions at
lower cost, and they will act accordingly.
http://www.celent.com/reports/imaging-retail-channel-2012-teller-capture-renaissance
[This article was posted on October 31, 2012, on the website of ABA
Banking Journal, www.ababj.com.]
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