Outsourced Item Processing. Doug Coleman Ed Greil

Transcription

1 Outsourced Item Processing Doug Coleman Ed Greil

2 Key Questions for Banks Considering Outsourcing IP Is item processing a core competency? Will maintaining an in-house IP operation be a source of sustainable competitive advantage? Will the requisite investment generate an adequate ROI both short- and long-term? Will this be the best use of available capital? 2

3 Outsourcing Value Conserve Bank Capital Staff Management Turnover and Training Cost Variable vs. Fixed Cost Pricing Model Decreasing check volume 5% - 10% Annually Dedicated Team of Professional Resources Operations environment that addresses business continuity and disaster recovery Risk and Compliance management Reduction in operating costs Increased flexibility to market changes in emerging payment trends 3

4 Outsourced Image Item Processing Service bureau solution for distributed capture solutions: Branch Capture Teller Insight Teller Capture Merchant Capture Smart Web Tested and configured for a multi bank environment Paper capture services where required Full suite of services in-house, outsource and ASP 4

5 National Payment Centers / Technology Centers 19 Item Capture Sites 13 Item Capture and Lockbox Sites 32 FIS Sites 132 Brinks Locations 164 FIS and Brinks Sites 40 States and Washington DC Print and Mail Proposed Print and Mail Technology Center National Payment Center 5

6 Technology Center Hardware Maintenance All hardware related installation, preventative and corrective actions Technical Support Planning, architecture, installation, configuration and maintaining operating systems software, transactions systems, tools and environment, resolving abnormal terminations Security Management and Performance Audits Administering and maintaining FIS standard security controls, auditing, monitoring, password reset, vulnerability assessment Database Maintenance Support Designing, modifying, maintaining, tuning databases 6

7 Technology Center Large area floor space for equipment and growth High Performance Servers High Performance Storage with large capacity UPS redundancy Dual Power Feeds Multiple generators for electrical power backup Multiple communication line carriers for backup Card Reader Access System 7x24 Manned Guard, Surveillance Video Monitoring 7

8 National Payment Center Management of production facilities Operations staff environment to control processing of services Infrastructure resides primarily in Technology Center Large processing environment for high number of banks Primarily electronic services only Consolidation of automated operational processes Ease of upgrades and releases Consistent processes and controls Improved Risk and Compliance management Improved Business continuity and disaster recovery processes 8

9 Day 1 Item Processing Services Paper and/or Electronic Inclearing Processing Paper and Electronic Controlled Disbursement Walk-up and Mail in Deposit Over the Counter Paper Processing Branch/Teller/ATM Capture CAR/LAR Processing Deposit and Fed Adjustments Real Time Database and Archive / Research Image Archive Interface for Home Banking Merchant and Consumer Image Capture ATM Deposit Processing Image Exchange 9

10 Day 2 Item Processing Services Image, Truncated Check Return Paper Statement Print and Rendering Electronic Statements Incoming Returns (Chargebacks) Exception Decisioning and Outgoing Return Item Processing High Dollar (Reg. J) Notifications (out and in) Research and Adjustments Collection of on-us and foreign items Protect21 (fraud) Fraud Detection on on-us checks and ACH Fraud Detection on Deposited Items 10

11 Add On Services Duplicate Detection Inclearing / On Us Transit Verifies against a client defined number of days Identifies and reports back suspect items Validation done to catch duplicates that may have been converted to IRDs Return items are flagged so that redeposits are not identified as suspect duplicates 11

12 Duplicate Detection The FIS duplicate detection process has helped Astoria Federal Savings ensure that customers are not impacted by erroneous or potentially fraudulent duplicate presentments of items. The duplicate detection process identifies any suspected items and allows Astoria Federal Savings to review those items before posting to customer accounts, keeping with our standard of excellence in customer service. Teresa Rotondo, First Vice President Director Deposit Operations Astoria Federal Savings 12

13 Add On Services Incoming Returns Incoming Returns Automatically manages incoming returns based on preset criteria Special instructions Only items that can not be automatically decisioned require bank handling Notices and IRD/notice combination Detailed reporting: Disposition Report Balancing Report Research Report 13

14 Incoming Returns Since outsourcing our incoming returns process to FIS, we have been able to reduce the number of exception items that we have to handle on a daily basis by 75%. FIS was able to take in our special instructions file successfully and we had no impact to our end clients. Daily processing runs smoothly, and we have established good communication between FIS and our operations teams. Sandy Talerico, First Vice President Production Operations Manager Citizens Republic Bancorp 14

15 Protect 21 For more information please consider the following sessions: InfoShare Session 409 Check Fraud Solutions - Wednesday 10:45 11:45 Client Conference Session 211 Check Fraud Solutions Wednesday 1:00 2:00

16 Thank You Doug Coleman (972) Ed Greil (414)