According to an article in BAI Banking Strategies by Applied Predictive Technologies, retail banks will focus on managing the multi-channel impact of mobile banking, downsizing branches and selective investing in branch technology. The changing market dynamics due to the variables of new technologies and adoption has complicated the modeling process for the retail sector.
This is an opportunity for operations to support the goals of the retail side of the bank by executing on new technologies in check processing automation. By taking a straight-through-processing orientation across the enterprise, the retail bank can focus on client needs, rather than overcoming operational limitations of systems. See how the five top trends can be optimized below with Next Generation Recognition (NGR) technology:
- Multi-Channel Impact of Mobile/Online: NGR can ensure image quality and proper indexing of check images at the myriad of capture points within the bank so operations can guarantee that the user experience of viewing complete transaction history and documents is flawless. Additionally, by reading and validating payee information from the check, the user can now download payee data into PFM programs for a more streamlined process which eliminates the frustration of keying in data.
- Making Money from Mobile: NGR with data verification can complete nearly 100% of the RDC check deposits without manual intervention. Without this capability, the unit costs increase dramatically for FI’s on Mobile RDC. For example, today’s standard is 70% acceptance of amount processing. The user experience suffers, which can discourage full market adoption. If it costs $0.25 cents to process rejects, you’re not making money.
- Smaller Branches with Innovative Approaches to Staffing: NGR reads virtually 100% of the check amounts on over-the-counter retail deposits. This ability of branch tellers to focus on client products provides a stable platform for a consistent retail experience. Tellers can be better sellers with greater success when they don’t have to focus on keying and balancing.
- Demanding ROI from Online/Social Media: Social media and online marketing can be supported via email campaigns and direct mail. By reading payer names and address of customers from transit checks, retail bankers can target geographic areas for prospective clients and push them to the online/social experience of the bank.
- Selective Investments in Branch Technology: The utilization of multi-functional ATMs and Kiosks in the branch can help complement the existing staffing models for high volume days, similar to how the airline industry works with kiosks. NGR technology can automate the deposit process which supports a fully automated experience for the customer. The worst scenario is for a customer to be rejected at the kiosk and go stand in line at the teller window.
As retail changes, so must operations and now the tools are available in check processing to minimize risk, disruptions and cost of processing for an optimal end-user experience.