Recently, Alogent published an article, “Taking-or Retaking- Control of Check Deposits” in ABA Banking Journal. For so long we have heard checks are going away, this has led some companies to forgo check automation assuming it’s a waste of time and there is a leapfrogging technology around the bend. Alogent thoughtfully explores how this short-sighted thinking is costing companies money and opportunities.
Overall check usage was steady last year, and business checks even increased 1%. Too often we look at how we manage money and use checks, and assume it is the same for all people and all businesses. When I tell people I work for a company that sells check scanners, often people say, “Who still writes checks?” This anecdotal thinking leads to serious pitfalls. As the article points out 51% of businesses still use checks, and check processing costs are up to $1.50 each. These facts cannot be ignored, while some just hope the check disappears. With ACH and Check 21 decades old now, checks are still here. And efficient automation continues to be key.
As FIs rethink how they handle checks, and look for the latest technologies to improve efficiencies, so must all of us. Software and hardware is more intelligent and forward thinking than ever. Ignoring checks and turning a blind eye to the processing costs is negligent. Whether its Remote Deposit Capture or increasing fraud prevention, checks are still an issue and not going anywhere anytime soon, so businesses must address them.