Check Imaging: Moving to Prime Time and Beyond

June 17, 2003

Abstract

 

San Francisco, CA, USA June 17, 2003

Celent Communications predicts that annual U.S. check imaging IT expenditures will increase from US$550 million in 2003 to US$1.9 billion by 2005.

A decade ago, check imaging seemed destined for a small place in check processing history. Today, it is marking a watershed by allowing banks to dramatically overhaul their operations. In a new report, entitled , Celent discusses the forces that are ushering in mass adoption of check imaging, including declining check volumes, the near certainty of Check 21痴 passage, improved price and performance of imaging hardware and software, and the rise of cooperative image exchange initiatives. These forces are providing banks with the ingredients to build robust business cases supporting adoption of check imaging.

According to

Alenka Grealish, manager of the banking group at Celent, "With check volume dropping, unit processing costs are inching up. With no more efficiencies to eke out of the paper process, banks must move to an electronic one. Moreover, early-mover banks are differentiating themselves with check image-related products and services. Other banks must respond, or risk losing their profitable checking account franchise.

The report draws upon Celent痴 experience and conversations with nearly 40 tenured check processing executives at mid-size and large banks, consortia, clearinghouses, the Federal Reserve, and solution providers. It profiles the adoption paths of five banks: Bank One, Washington Mutual, Wells Fargo, and Lloyds TSB, and Provident Bankshares.

A Table of Contents is available online.

 

 

of Celent Communications' Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

 

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

  San Francisco, CA, USA June 17, 2003

Check Imaging

Return to report Abstract

 

EXECUTIVE SUMMARY 3
FUELING THE JOURNEY 5
  Declining Check Volume 5
  An Operational Albatross 7
  Check 21 8
CHECK IMAGING: CHARTING A NEW COURSE 10
  Polishing Up Check Imaging 11
  Distributed Capture 13
  Image Archive For Every Bank 15
  Image-Enabling "Day 2" Operations 15
  Dead Reckoning For Image Exchange 17
BUILDING A BUSINESS CASE: THE SHIP HAS COME IN 24
  Breaking With Conventional Wisdom 25
  Cost Savings 26
  Eliminating Float 28
  Fewer Bad Checks 29
  Revenue Enhancement 30
FINANCIAL INSTITUTIONS PLOT DIFFERENT COURSES 33
  Same Destination, Different Routes 34
  Bank One 35
  Washington Mutual 37
  Wells Fargo 38
  Lloyds TSB 42
  Provident Bank 45
END GAME 46
APPENDIX 49

 

        

 

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