As Check Volumes Hold, Banks and Credit Unions Need Smarter Item Processing Solutions
As digital payments evolve, it’s easy to think checks are becoming obsolete. Yet recent data, and real-world behavior, tell a different story. Checks remain a critical part of the payments ecosystem for consumers and businesses alike. At the same time, outdated check processing systems are creating unnecessary risk and inefficiency for financial institutions. The solution? A strategic investment in modernization and consolidation.
Check Volumes are Holding Steady – Even Growing
Surprising to some, check usage increased among U.S. businesses last year. According to the 2024 Payments Fraud and Control Survey from the Association for Financial Professionals (AFP), 91% of businesses reported using paper checks, up from 75% the prior year. Even more telling, 75% of organizations said they have no plans to reduce check usage in the next two years.
But checks remain a leading target for fraud. In fact, 63% of organizations reported attempted or actual check fraud in 2024, highlighting the need for stronger, real-time fraud prevention tools.
Why Checks Still Matter
Despite the rise in digital payments, checks continue to serve a critical role:
- 51% of businesses still use checks for B2B payments
- Over half of Americans wrote at least one check in 2023
- Checks provide traceability, documentation, and flexibility, especially in industries slow to digitize
However, relying on outdated systems introduces real risks and operational inefficiencies.
Outdated Check Processing Solutions Create Risk
Many banks and credit unions still use multiple platforms to process checks across deposit channels, including in the branch, at the teller line, online, and across other remote deposit channels. This fragmented model leads to:
- Data silos and limited visibility
- Higher fraud risk due to inconsistent business rules and batch processing
- Operational inefficiencies and costly system maintenance
- Inconsistent user experiences across channels
As fraudsters become more sophisticated, legacy systems make it harder to detect threats and keep up with compliance standards. Yet despite the risks, many institutions delay modernizing due to perceived cost or complexity.
Modernization Through Consolidation: A Smarter Approach to Check Processing
Modernizing doesn’t mean abandoning checks - it means processing them smarter. The key lies in consolidating item processing silos with a platform that addresses all deposit channels under one system, helping financial institutions:
- Lower operating costs and simplify vendor management
- Improve fraud prevention with real-time capabilities
- Gain centralized insights into deposit trends and risk
- Deliver consistent user experiences across every channel
- Future-proof their infrastructure with a scalable platform
Modernization Starts Now
Checks aren’t going away anytime soon, and neither is the need to process them efficiently and securely. For banks and credit unions, modernizing check processing isn’t optional - it’s a strategic necessity.
How Unify Powers Check Processing Modernization
Unify is Alogent’s award-winning item processing platform that brings all deposit channels under one solution and a single API. With a centralized approach, Unify supports all Day 1 and Day 2 workflows without the need for batch processing, streamlines operations, and enhances fraud mitigation at the point of capture.
Checks may not dominate headlines, but they remain deeply embedded in the financial habits of businesses and consumers.
Ready to reduce risk, lower costs, and future-proof your item processing? Discover how Unify can help.
Learn more about Alogent Shield for check fraud mitigation
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