Client Case Study with HORIZON Teller Capture

May 24th, 2017

Russell High, FIS Product Manager

Kevin Klump, Industry Bancshares

Agenda for today

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• What is Teller Capture

– How will it help my institution?

– What will change?

• How does it work

– HORIZON Teller Capture experience

– Development update

• Lessons Learned

• Questions

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Introduction to Teller Capture

The branch image capture evolution

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• We started at the back counter

– Focus was on paper to image

– Speed of processing

– Reduce courier runs

• Evolution continues to the front counter and/or self service

– Efficiency (back office AND front)

– Cost savings

– Rising costs

• Branch traffic declines – but isn’t going away

Many customers like branch deposits

5Source: Javelin, Mobile Imaging: Going Beyond Mobile Remote Deposit, February 2013

How Will Teller Capture Help?

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• Improved customer service

• Speed of transaction

• Greater accuracy of

transaction

• Extended deposit cutoffs

• Supports single handling of

transaction

• More efficient/no missing

items, etc.

• Reduced manual data entry

• More face time with the

customer

• Reduction in data cleanup

• Reduction in day 2 work

• Virtual tickets bring cost

savings

TellerCustomer Back office

Cost Benefits with Teller Capture

Cost Savings

Transportation

Reduced back office labor

Paper savings

Reduced adjustments

Reduced research

Rapid processing

Branch Capture Teller Capture

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Reduced Item Processing Costs

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• FIS three bank study:

– FIS compared 3 ‘scan and go’ branch

capture sites with teller capture

– Reduction in item keying from 20% –

40%, down to .003%

– Reduction in deposit adjustments from

.3% to .00003%

Branch Capture

Bank 1 Bank 2 Bank 3

Item Count 110,104 86,873 93,467

% Edits 40% 23% 16%

Deposit Adjustments 391 367 181

% of Adjustments .36% .42% .19%

Teller

Bank 4

96,780

.2%

3

.00003%

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Case Studies

Small Institution

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• Less than $500,000 in assets

• Six branches in single community

• Outsourced item processing

– Previously using back counter branch capture

– Seeking to reduce charges for data correction and adjustments

• Goals:

– Minimize customer impact

– Reduce item processing costs

– Lower teller overtime

• Return on investment:

– Highly improved teller accuracy

– Significantly reduced fees (items corrected down from 22% to .003%)

– Deposit adjustments nearly eliminated

– Tellers finished all work by end of shift (no overtime)

Medium Institution

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• Approximately $10B assets and 100 branches

• Goals:

– Cost reduction (item processing, courier)

– Alleviate ‘back counter’ scanning by tellers

– Reduce item processing exceptions

• Concerns:

– Training

– Transaction time at the teller line (commercial in particular)

• Results:

– Training was easier than expected

– Commercial deposits accommodated

– 40% reduction in item processing cost

– Near elimination of deposit adjustments

– Reduced time to complete ‘normal’ transaction

– Complete return on investment in Year 1

Large Institution

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• Hundreds of branches in many states

• Significant in-house item processing organization

– Four in-house sites

– Nine outsourced sites

– Shifting from paper to image exchange

• Goals:

– Cost reductions

– Boost teller cross sale opportunities

• Return on investment:

– $20 million in savings and infrastructure takedown

– Efficiencies – 23 hours per branch per month

– Branch sales and service model

18% close on ‘next best product’ (125% increase)

70% increase across the bank

– Improve quality of service

Improved Customer Experience

Adjustments per 10k in back counter ~80

Adjustments per 10k in POD ~45

Adjustments per 10k in best in class 14

Adjustments per 10k in teller capture 13.7

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Client Case Study – Industry Bancshares

Who is Industry Bancshares

• Based in Industry, Texas

• 6 bank holding company

• 24 locations

• $3.6 billion in assets

• Too Many Conversions

– Converted 5 banks to HORIZON in 2013

– Converted 6th bank in 2015

– Converted 2 banks into an existing bank over the

last 12 months

• HORIZON Teller using DirectLink

Why Teller Capture

• Improve item processing

• Eliminate daily cutoff times

• Eliminate documents, try to go paperless

Roll out process

• Decided to use DirectLink to eliminate the need for additional servers.

• Ordered new teller hardware.

• Configured and deployed 125 Epson TM-S9000 scanner/printers

• Setup test drawers with test environment in Image Centre

• Training sessions for the tellers

Lessons Learned

• Tellers are the beginning, middle, and end of proofing the transaction

• Before TC - Tellers were not running transactions correctly

• Other departments run too many paper tickets

• Fast roll-out worked better, train one week, go live the next week.

• Take advantage of “power user”

• Better Communications with the customer.

• Pre-defined responses to why a deposit slip is not needed and the new receipts.

• Tip sheet from HORIZON implementations is great.

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“We should have done this

sooner, I love it!“

- Citizens State Bank Teller

Russell High, russell.high@fisglobal.com

Kevin Klump, kklump@industrybanc.com