Bank Board Letter February 2016 : Page 3

Deposit AutomAtion At the Atm: Cuts Costs, improves serviCe By Mike Ruth T echnology helps drive the path that community banks are currently on, and it will continue to help drive the industry well into the future. In its Global Banking Outlook Re-port, consulting firm EY notes that it is clear that technol-ogy will not only reshape the experience of banking customers, but will revolutionize banks’ internal processes, making them more efficient and more productive. Community banks have an opportunity to leverage technology to streamline and improve their deposit automation strategies Ð and the ATM channel is a critical component to achieving these efficiencies. DeposiT AuTomATion AT The ATm Investing in the ATM channel as part of an improved deposit automation strategy should not be ignored. Automated deposit functionality at the ATM can significantly reduce the time branch personnel spend handling manual transactions. This allows banks to migrate deposit processing away from the teller line, enabling improved customer service and increasing sales opportunities. Automated deposit at the ATM can also have a huge impact on the bottom line. In fact, it can reduce ATM deposit processing costs by an impressive 65 percent, according to Tower Group research. The customer experience is also greatly enhanced by simplifying transactions at the ATM. Automated deposit eliminates cumber-some deposit slips and envelopes and allows for multiple checks or bills to be easily deposited into a single slot. It also extends the time that customers can make deposits at the ATM and be confident that their deposits will post that day, providing immediate access to cash. What’s more, if the check amount displayed on the ATM cannot be read, a customer can correct any questionable check amount, have the checks immediately returned or cancel the entire transaction and have all checks returned. All of this combined can result in greater loyalty and retention, building the case for deposit automation return on investment. Migrating customers to the ATM for their deposit needs requires a well thought-out plan that consists of understanding branch demographics, marketing and customer communication efforts and measurement. When well-executed, automated de-posit can result in 40 percent of deposit activities migrated from the teller line to the ATM. This can significantly benefit your branch with lower costs per transaction. need to reduce employee head count Ð rather they can shift employees’ focus to other sales initiatives and high-value tasks. images © FilippoBacci/iStock LAying The FounDATion While the benefits of deploying automated deposit at the ATM are numerous Ð from increased transactions at the branch to mi-grating deposits away from the teller to the ATM channel Ð they can be lost if the technology that supports how ATM deposits are handled and processed is not fully upgraded. Banks must be willing to go “all in” on their deposit automation strategy if they want to achieve true ROI from their investments. This includes making up-front investments in check-and cash-processing technology, including image-enabled check processing. Image-capture technology reduces the need for manual re-trieval and daily deposit processing. During this process, checks are inserted into the ATM, the image is then captured after the transaction is confirmed by the customer. The image is then sent to a check-processing server that will consolidate the check im-age with others. Finally, after consolidation, a file is sent to the items-processing application for proofing, and the proofed file is then sent for posting, which provides immediate access to funds. TAking AcTion Successfully integrating deposit automation into the ATM channel requires that people, processes and technology are all in alignment. This must be an integrated effort between the organization’s business and IT divisions. Appointing a project manager to lead the project will ensure that the goals are clearly defined, needs and issues are prioritized and effective commu-nication is implemented. The project lead will also serve as the point person for determining the “go to market date.” Making the investment in automated deposit now can pay dividends for your deposit automation strategy and your bank, well into the future. Mike Ruth is ATM product manager for Cummins Allison. For more information, visit www.cumminsallison.com. TAking The DeposiT AuTomATion LeAp Perhaps the most critical reason for deploying automated de-posit at the ATM is to stay competitive in the marketplace. This includes attracting and maintaining the millennials who are not only completing transactions for themselves, but also on behalf of their parents. This tech-savvy generation represents 25 percent of the U.S. population and has no patience for outdated processes such as envelopes and deposit slips. Another critical advantage is gaining employee efficiency within the branch. Deposit automation does not mean banks

Deposit Automation At The ATM: Cuts Costs, Improves Service

Mike Ruth

Technology helps drive the path that community banks are currently on, and it will continue to help drive the industry well into the future. In its Global Banking Outlook Report, consulting firm EY notes that it is clear that technology will not only reshape the experience of banking customers, but will revolutionize banks’ internal processes, making them more efficient and more productive. Community banks have an opportunity to leverage technology to streamline and improve their deposit automation strategies Ð and the ATM channel is a critical component to achieving these efficiencies.

DEPOSIT AUTOMATION AT THE ATM

Investing in the ATM channel as part of an improved deposit automation strategy should not be ignored. Automated deposit functionality at the ATM can significantly reduce the time branch personnel spend handling manual transactions. This allows banks to migrate deposit processing away from the teller line, enabling improved customer service and increasing sales opportunities. Automated deposit at the ATM can also have a huge impact on the bottom line. In fact, it can reduce ATM deposit processing costs by an impressive 65 percent, according to Tower Group research.

The customer experience is also greatly enhanced by simplifying transactions at the ATM. Automated deposit eliminates cumbersome deposit slips and envelopes and allows for multiple checks or bills to be easily deposited into a single slot. It also extends the time that customers can make deposits at the ATM and be confident that their deposits will post that day, providing immediate access to cash. What’s more, if the check amount displayed on the ATM cannot be read, a customer can correct any questionable check amount, have the checks immediately returned or cancel the entire transaction and have all checks returned. All of this combined can result in greater loyalty and retention, building the case for deposit automation return on investment.

Migrating customers to the ATM for their deposit needs requires a well thought-out plan that consists of understanding branch demographics, marketing and customer communication efforts and measurement. When well-executed, automated deposit can result in 40 percent of deposit activities migrated from the teller line to the ATM. This can significantly benefit your branch with lower costs per transaction.

TAKING THE DEPOSIT AUTOMATION LEAP

Perhaps the most critical reason for deploying automated deposit at the ATM is to stay competitive in the marketplace. This includes attracting and maintaining the millennials who are not only completing transactions for themselves, but also on behalf of their parents. This tech-savvy generation represents 25 percent of the U.S. population and has no patience for outdated processes such as envelopes and deposit slips.

Another critical advantage is gaining employee efficiency within the branch. Deposit automation does not mean banks need to reduce employee head count Ð rather they can shift employees’ focus to other sales initiatives and high-value tasks.

LAYING THE FOUNDATION

While the benefits of deploying automated deposit at the ATM are numerous Ð from increased transactions at the branch to migrating deposits away from the teller to the ATM channel Ð they can be lost if the technology that supports how ATM deposits are handled and processed is not fully upgraded. Banks must be willing to go “all in” on their deposit automation strategy if they want to achieve true ROI from their investments. This includes making up-front investments in check- and cash-processing technology, including image-enabled check processing.

Image-capture technology reduces the need for manual retrieval and daily deposit processing. During this process, checks are inserted into the ATM, the image is then captured after the transaction is confirmed by the customer. The image is then sent to a check-processing server that will consolidate the check image with others. Finally, after consolidation, a file is sent to the items-processing application for proofing, and the proofed file is then sent for posting, which provides immediate access to funds.

TAKING ACTION

Successfully integrating deposit automation into the ATM channel requires that people, processes and technology are all in alignment. This must be an integrated effort between the organization’s business and IT divisions. Appointing a project manager to lead the project will ensure that the goals are clearly defined, needs and issues are prioritized and effective communication is implemented. The project lead will also serve as the point person for determining the “go to market date.”

Making the investment in automated deposit now can pay dividends for your deposit automation strategy and your bank, well into the future.

Mike Ruth is ATM product manager for Cummins Allison. For more information, visit www.cumminsallison.com.

Read the full article at http://omagdigital.com/article/Deposit+Automation+At+The+ATM%3A+Cuts+Costs%2C+Improves+Service/2394862/290437/article.html.

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