Jack Henry eBook: Turning Positive Pay Into Revenue Generation
- Fraud prevention is more crucial than ever
- 40% of community bankers cite check fraud as one of the most common swindles
- Positive Pay is an invaluable tool in the fight against fraud
As we've noted previously, the adoption rate of Positive Pay remains shockingly low. In fact, according to research from Alkami & Datos Insights, 65% of financial institutions have less than half of their treasury service clients using Positive Pay, and 39% have less than 25% adoption.
While recruiting corporate clients to Positive Pay offers the major benefit of fraud loss reduction to both FIs and their corporate clients, many banks do not perceive a strengthened revenue stream in Positive Pay according to the recently published eBook from Jack Henry entitled Using Treasury Management to Build a Stronger Bank .
How Positive Pay Boosts Revenue
As noted in a post on Bank Automation News, incorporating Positive Pay "can transform your treasury management solutions into a profitable revenue center."
How can FI's do this? Well, the eBook provides these four insights:
- Fee-Based Income: Positive Pay allows banks to charge fees for advanced treasury management features, creating a new revenue stream.
- Deposit Growth: Positive Pay attracts commercial customers who maintain higher account balances, providing low-cost funds for lending.
- Stronger Client Relationships: Positive Pay strengthens commercial relationships by positioning the bank as a trusted fraud prevention partner.
- Cost Savings and Risk Mitigation: Positive Pay reduces fraud-related losses, decreasing unnecessary expenses and justifying higher fees.
Positive Pay is One Key Component to Check Fraud Detection
While Positive Pay is a key component in the fight against check fraud, we must remember that it can only do so much alone -- particularly since it's only used for business accounts.
FIs need to ensure that they deploy the right technologies that can achieve 95%+ detection rate. So, how can banks achieve this?
- Ensure that Positive Pay solutions include payee
- Deploy Image Forensic AI to analyze check images of On-Us and Deposited check items
- Establish additional transactional analytics to monitor accounts
- Set up a rules engine to address new trends
- Incorporate third party data, including consortium and dark web
FIs who deploy these technologies in a multi-layered technology approach for check fraud detection have seen tremendous results, with one OrboGraph client achieving 100% check fraud detection.
Schedule a 30-minute discussion with an OrboGraph representative below.