While the benefits of implementing check image capture in branches are well-known, and the practice itself is a proven business case, how “tuned” is your bank’s strategy to maximize the impact of branch image capture and realize optimal benefits?

In our experience, it appears that many banks have taken a “set it and forget it” approach to branch image capture. The initial implementation – several years old for most financial institutions – has seen results that made the business owners happy and returned the expected business case benefits. But what’s next?

The assumptions used in creating those business cases relied on technology assumptions that have become out-dated. Examples include scanner speed, the ability to further reduce courier runs given advancement in other “paperless” technologies, and the advancement of modern day CRM systems funnelling rich customer information into a sales setting.

We believe banks should do some “tuning” to modernize their approach to implementing image capture in a branch setting, and ensure that additional efficiencies and sales opportunities are realized in today’s economic setting. The beauty in refining the strategy is that most of the assets are already in place and “change” has already occurred. Branch staff and item processing centers have the intelligence now to tighten the wrench since major hurdles have already been cleared.

Examples of what banks can do to realize additional gains include:

1. Utilize non-negotiable/mandatory runs (i.e. cash transportation) to absorb the remaining branch courier runs (e.g., loan collateral, other mail, etc.) – leverage their infrastructure to manage mandatory document flows
   • Reduce transportation cost related to courier runs (the average cost per courier run is over $15)
2. Test and inventory the frequency at which necessary paperwork must be transported, and identify branches that produce these at a high frequency to consider alternative transportation methods such as FedEx, UPS, USPS, etc.; an increase in cost for alternative transportation methods will be offset by a significant reduction in transportation cost related to courier runs
3. Analyze the inventory of paper items produced in the branches that must be physically transported to the back-office and identify alternatives to digitize/eliminate this volume
   • Process improvement
   • Reduce paper and ink cost (it costs most banks 5 cents on average to print a document)
   • Reduce average transaction time
   • FTE reductions in the back-offices (an average worker spends approximately 13 hours per week filing and organizing paper documents, managing document routing and retrieving archived records)
4. Use CRM application as a catalyst for leads while checks are being scanned
   • Enhance cross channel efficiencies
   • Increase teller sales (more than 90% of branch transactions involve the Teller – that’s a lot of opportunities for relevant product presentment)
   • Increase customer satisfaction/retention
5. Utilize eSignature capabilities to capture client signature to suppress undesired printing of forms
   • Reduce paper and ink cost, reduced postage costs (in addition to the paper and printing cost of 5 cents for every document, postage costs an extra 40 cents)
   • Reduce physical transportation of forms to back-offices, eliminating associated costs
   • Improve document quality resulting in fewer errors and adjustments

Taking action to address potential cost savings is critical in today’s retail banking environment. Ensuring your investments in technology and process redesign are yielding their highest ROI is mandatory. Staying abreast of new technologies that complement your image capture deployment will provide that extra edge to remain competitive in the market.

What opportunities is your organization pursuing to tune your branch image capture financial performance and get closer to a true paperless processing environment?

Lane Martin is a Managing Principal with Capco’s Banking group in North America. Priya Gupta is a Senior Consultant with Capco’s Banking group, specializing in remote deposit capture and retail banking operations.