The joint report by Alogent and BearingPoint, a free copy of which is available at (http://www.alogent.com/stcp), documents the savings banks can garner from Straight Through Check Processing (STCP) - before the Check Clearing for the 21st Century Act, the electronic check processing legislation passed by both houses of Congress this year, goes into effect. The STCP concept details how image technology can be used from the earliest point of presentment to boost workflow efficiency, eliminate paper, and build strategic migration from paper to electronic payments. The study indicates that a typical Tier-1 bank (i.e., banks with greater than $50B in deposit assets) could potentially save more than $45 million per year, and achieve as much as a 70 percent ROI, by implementing STCP. These savings can be realized prior to Check 21, as they do not depend on post-Check 21 infrastructure for image exchange. The simulation model, developed by Alogent, is based on actual bank data and a benchmark study extensively validated by BearingPoint. Check 21 legislation will create an operating environment with a changing mix of paper, data and image, leading eventually to the total truncation of paper at the earliest point of payment. Apart from the anticipated savings associated with image settlement post-Check 21, the study on STCP gives a measurable dollar value estimation of the efficiencies garnered by implementing image capabilities now.
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