The Fundamentals Behind Managed Check Recognition Services
There was a great article written on the Institute of Financial Operations site called “5 reasons you should not manage OCR software internally”. The article focused on how a SaaS model eliminates the following challenges:
- Lack of expert resources on staff
- More expense and difficulty
- Longer start-up
- Undesirable result
- Unusable software
The concepts and challenges for end-users to fully manage their recognition environment applies to all industries. We’ve seen how even in check processing, banks are underachieving in their check processing environments by 10%, 20% and even 30%, leaving large chunks of automation “on the table” for their employees to manage. The end result is higher labor costs, additional overhead to run the systems and negative client experience due to additional errors.
One bank we know spent six months, with two full time employees “tuning” their check recognition software. The end result, they attained check read rates in the mid 80’s… temporarily. The IT overhead in this example was nearly $200K considering benefits, etc. All this because they wanted to do it themselves. Was this cost effective for them? Stop the madness I say!
You don’t really need a SaaS model to have a Managed Recognition environment. All you need is a company with:
- A strong product
- Knowledge to quickly tune the system for optimum performance
- And the confidence to guarantee results
Sounds simple, yet no one does it… except I may know of one company… 😉