Check imaging is one of the most talked-about new ATM features. With digital images now having the same legal status as original checks, banks have a huge opportunity to achieve significant cost savings and give consumers greater flexibility by shifting transactions from the branch to the ATM.
Check 21 legislation begins to put an end to the “paper chase” of check processing, making scanned images as legitimate as the original document. As Check 21 becomes a reality, financial institutions are beginning to focus not only on check-scanning capabilities in back- office systems but also deposit-taking at the point of entry at locations such as ATMs, in order to capture check images as documents enter the bank. The more that check imaging and deposits can be shifted to the point of entry, the greater the productivity gains.
Today, roughly ten percent of ATM transactions are deposits – this figure can be as high as 50 percent for some of the large national banks. Deposit automation has a high potential to lower both the costs of check processing and cash handling services, and it also improves the customer’s experience at the ATM.