Case Study — Bank Asserts Independence


Prismac’s client has a tradition of banking independence by processing proof-of-deposit in-house.

The Challenge

The bank’s cheque volumes increased over the years and projected to grow further with new customers. The bank’s geographical location made it increasingly difficult to guarantee that all payments were processed and exchanged with other banks for clearing on the day they were deposited by customers.

The bank needed a new solution that could meet its strategic objectives and its customer needs.

The Solution

The bank resisted the trend of financial institutions to outsource the cheques processing and remittance payments. The bank CEO said "We value our independence, because it gives us the freedom to be innovative, the flexibility to change, the right to put the needs, dreams and hopes of our customers, and other New Zealanders, first."

The client selected Prismac for its knowledge and expertise in payment processing to deploy a branch-based solution to remotely capture the deposits at the source.

Prismac designed the solution using its Image Remittance Processing System (IRPS) at the bank’s data centre and Unisys SourceNDP desktop hardware at each branch. SourceNDP scans the document image and MICR data at the remote location, allowing balancing and correction to occur immediately. After verification, the data and images are transmitted to head office for account update, electronic presentment, and image archive.
Demonstrating its innovative partnership, Prismac developed it’s the branch-capture solution for Linux and integrated it with the Linux-based branch teller system developed in-house by the bank.

The Results

Prismac’s solution made it possible for the bank to honour its guarantee of same-day processing for its customers.

The client's Manager of Information Services stated:

"Adopting a branch capture solution was not an easy decision for the bank. Truncation of cheques is not yet a practical reality due to limitations imposed by some members of the industry requiring paper to follow electronic presentment. Prismac provided enormous support in developing a benefits model that supported our decision due to the excellent item cost profile delivered. This supported our belief that when the need to send paper is removed in the near term we will be positioned as the first New Zealand bank to accrue the benefits of a source capture based truncation solution."

 

 

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