use case: MOVING FROM BRaNcH TO TeLLeR caPTuRe

Newtechnologyresolvescreditunion’scheckprocessingchallenge

Althoughelectronicbankinghasbecomeincreasinglypopularinrecentyears,checksremainacommonandhighlyusedmethodofpaymentintheUnitedStates.A2010FederalReservePaymentsStudyestimatesthattherearestill24.4billioncheckswrittenintheUnitedStatesannually.Infact,checkswrittenfrompersontopersonincreasedbythreepercentperyearbetween2006and2009.1

Consumersandbusinessesstillusingpaperchecksbenefitfromthesecurityandflexibilityprovidedbythistraditionalpaymentmethod.Creditunions,withtheirstrongcustomerservicebusinessethic,aimtocheerfullyaccommodatetheircustomers’preferences.Butthisaccommodationneedstobeinbalancewiththebusinessrequirementofcontrollingorreducingcosts.

Paperchecksareincreasinglycostlytoprocessandfinancialinstitutionsarelookingforsimple,affordablewaystomanagethischallenge.

a forward-looking approach

Acreditunionprocessesdepositswithcheckvolumesof800to1,600checksperday,ateachofsevenbranches.Acurrencyprocessorandahorseshoe-typecheckscannerwereusedtoperformbranchcapture.Usingscannersinterfacedwithatellersystem,thebranchcaptureprocesswastaking30to40minutesperbatch ofchecks.

Asanearlyadopterofbranchcapture,thecreditunionhopedtofurtherincreasespeedandefficiencybymovingtotellercapturewiththeapplicationofnewtechnology.Theirultimategoalwastoimprovecheckanddepositprocessing,savingtime,providingbettercustomerserviceandmakingemployeesjobseasier.

Doubters become advocates

Whenskepticshadanopportunitytoseefirsthandtheeaseofuse,thespeed,andincreasedimagequalityprovidedbythenewsolution,nofurtherdoubtswereraised.EveryonewaseagertomoveforwardonatrialofJetScaniFX®checkandcurrencyscanner.

JetScaniFXprovedfastandsimpletouse,withcashiersremarkingonitseaseofoperationcomparedwiththeirpreviouscurrencyscanner.Onestepjamrecovery,wrinkleremovalbyspecialsoftwareandtheabilitytoprocesslargedepositsconsiderablyfasterthanbeforewonoverthetellers,branchmanagers,andcredituniondecisionmakerscompletely.

Pain points in current process

• Preparationtime:time-consumingfacingandsortingchecksforthehorseshoescanner’sfeeder

• Slowprocessingspeed:horseshoe scannersperformtooslowlyforthequantityofchecksprocessed

• Documentcondition:poormachinehandlingofwrinkleddocuments

• Equipmentjams:machinessubjecttofrequentjamming

• Largefootprint:spacelimitationsprohibitusingtwomachinesfortellercapture

• Off-siteservice:need redundant scannersduetooff-siterepairs

• Machinesunreliable:repairsneededmoreoftenthanseemsreasonable

Customerqualifyingcriteria

Thecustomerneededtobuildabusinesscaseforanewsolutionandbroughtforwardsomeadditionalfactorsforconsideration:

• Checkvolumesalonemightnotjustifypurchasinganewmachine

• Brancheswherelowerqualitychecksandcurrencyaretypicallyprocessedshouldreceiveprecedenceinupgrading

Perceived barriers to new solution

Noteveryoneinanorganizationwelcomeschange,andtherewereemployeeswhoinitiallyresistedtheproposedprocessshift.Theysaidthatanewmachineandnewsoftwareinterfaceswouldhaveasteeplearningcurve,incurringtimeandcostsforretraining.Somemaintainedthatthecurrentprocesswasacceptable–sowhywasthereaneedtochange?

Creditunionseekssimple,affordablecheckprocessingsolution

Easeofoperationmadeconverting toanewprocessfastandsimple.

1FederalReserveSystem,www.frbservices.org/files/communications/pdf/research/2010_payments_study.pdf

Better quality images plus fewer rejects equals lower costs.

Showusthemoney

Operationalimprovements

• 3to4timesfastercheckprocessing

• Eliminationofahalf-timeposition

• Reductionintransactionprocessingtimes

SpeedofoperationswasgreatlyincreasedviaconversiontoJetScaniFX.Threetofourtimesfastercheckprocessingattheteller station enabled the credit union to eliminateahalftimepositiondedicatedtoprocessingeachday’schecks.Inaddition,theadvancedcurrencyprocessingcapabilitiesofthei100visiblyimpactedoveralltransactiontimes.

Atellerstoodreadyeveryafternoontocountthecurrencybroughtinbyasinglecustomer–thebills’poorconditionrequiringconsiderableprocessingtime.Withitsunmatchedabilitytoscanbillsinalmostanycondition,JetScaniFXshavedmorethannineminutesfromthisdailytransaction,reducingitfrom10minutestolessthanoneminute.Thisexceptional

casedemonstratedthatdramaticallyimprovedprocessingofpoorqualitybillswouldreducedeposittransactiontimes.

Otheropportunitiesfordirectcostsavingsincluded:

• Rescanninggreatlydecreasedoreliminated

• Reducedfootprintbyreplacingtwomachineswithone

• Lessdowntimeandmaintenancecostforonemachineandonevendor

• Needforredundantequipmenteliminatedwithgreaterreliabilityandon-siteservice

JetScaniFXalsocapturedbetterqualityimagesthanthecreditunion’spreviousscanner,resultinginfewerrejects.Rejectsarecostlybothintermsoftimeandprocessingfees.Priortothe10-weektrialofJetScaniFXoneortwoitemsperday–orapproximately750items–hadbeenrejectedduetopoorimagequality.Duringtheentiretrial,however,onlyoneitemwasrejected–averysignificantreduction.

JetScaniFXhastheunmatchedabilitytoscanbillsinalmostany condition.

Processing checks three to four times faster enables tellers to provide better customer service to members.

Call today for your trial of this award-winning solution. For more information about JetScan iFX solutions, please visit cumminsallison.com/checks

Other cost savings

Additional savings and benefits the credit union acknowledged includes:

• Simpleoperationmadeconversiontothenewprocessquickandeasyforallconcerned

• Increasedcustomersatisfactionwithcashiersabletospendmoretimeinteractingwithmembers

• Increasedemployeesatisfaction,makingacriticaltaskeasier,fasterandmorerewarding

Mission accomplished

Thecreditunion’sultimategoalwastosavetime,providebettercustomerserviceandmakeemployeesjobseasierbyimprovingtheircheckprocessing.BygivingJetScaniFXatrial,theyaccomplishedthatgoalandmore.

Attripleandquadrupletheprocessingspeedtheyblazedthroughchecksatapacetheyhadn’timaginedpossible,removingtheneedtoprocesschecksasaseparateoperation.Inaddition,thesuperiorimagequalityproducedbyJetScaniFXreducedtheneedtorescanchecks,yieldingunanticipatedtimesavings.

Frequentrejectsbecameathingofthepast,withonlyonerejectreportedover10weeksratherthan1to2perday.Evencurrencyprocessingresultsweresignificantlyimproved–bymorethan90percentwhenprocessingpoorqualitybills–withinareducedfootprintandwithgreateraccuracyandimagingoptions.

Best possible outcome

Butforacreditunion,improvedcustomerserviceisarguablythemosthighlyprizedandsoughtafterbenefit–andtherewasnoargumentthatthetellersnowhadmoretimetointerfacewithmembersinapositiveway.And,sinceemployeesatisfactiongenerallytranslatestobetterservice,thenewequipment’seaseofuse,dependabilityandtheeliminationofalltheirpainpointsaddeduptothebestpossibleoutcomeforthiscustomer.

GenerationsofVisionandExcellence

CumminsAllisonsetsthestandardforaccuracyanddependability.

CumminsAllisonisagloballeaderindevelopingsolutionsthatquicklyandefficientlycount,sortandauthenticatecurrency,checksandcoin.Witha125-yearheritageofleadershipintechnologyandproductinnovation,CumminsAllisonservesthemajorityoffinancialinstitutionsworldwide,aswellasleadingorganizationsinretail,gaming,lawenforcementandgovernment.Ninety-sevenpercentofourcustomersrecommendourproductsandservices.

CAholdsmorethan350U.S.patentsandinvestsdoubletheindustryaverageinR&D.Ourworld-classsalesandservicenetworkincludeshundredsoflocalrepresentativesinmorethan50officesinNorthAmerica,4wholly-ownedsubsidiariesinEuropeandisrepresentedinmorethan70countriesaroundtheworld.

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