Banking Innovation: Are You Keeping Up with Transaction Processing Trends Shaping the Banking Market?
The payments landscape continues to take shape with alternative payment and cashless transaction methods, yet in the face of persistent digitalization, checks remain a viable option for many – especially consumers depositing large value checks and small businesses. As next-generation technologies change the face of the payments ecosystem, transaction processing is well underway to becoming more streamlined and cost-effective across traditional deposit channels, as well.
Key market segments that your bank or credit union should consider for more cost-efficient processes and better user experiences, include:
Remote Deposit Capture (RDC) Experience
Reports indicate that remote deposit ranks as one of the most important features of digital banking, as smartphone and desktop scanner usage continue to rise. RDC technology continues to be shaped by the pairing of artificial intelligence (AI) and machine learning capabilities that strengthen image interrogation and data extraction – enabling better accuracy at the point of capture, faster access to funds, less manual review in the back office, and a better user experience with less keying and deposit rejections.
Cloud Technology
Cloud technology plays a key role in boosting efficiency and scalability in deposits automation, as well as security by employing built-in features like encryption to protect institutions and account holders and address compliance mandates. The extensive flexibility of cloud technology allows banks and credit unions to scale their processing capacity as their needs grow or diminish based on business and market needs, resulting in cost savings as institutions can augment their payments infrastructure without hefty investments or IT teams.
Automation of Operations
The last mile of check processing can be expensive, which also puts a strain on overhead expenses. Back-office operations at financial institutions tend to be marred by repetitive tasks, such as document processing and manual reconciliation. It’s crucial for banks and credit unions to reduce manual review and keying for better automation, faster processing, and reduced risk of error.
Fraud Mitigation Tools
Check fraud reports nearly doubled in 2022 compared to 2021, and a report by PointPredictive suggests check fraud will hit $24B in 2023 and continue to rise in 2024. With surging fraud comes the availability of newer, more advanced risk mitigation and prevention solutions. Modern transaction processing platforms offer built-in capabilities that can be enhanced with the addition of third-party solutions to better identify patterns and anomalies. These tools can be employed across all deposit channels, stopping fraud before it enters down-stream workflows and becomes more costly.
Advanced Data Analytics
Data integration platforms aren’t new, but being able to leverage enterprise data across the institution is now possible thanks to cutting-edge technologies that extract deeper and more insightful business intelligence and make it actionable. These solutions can integrate with external deposits and transaction processing platforms to aggregate large volumes of information from across all deposit channels for a holistic view that enable better decision making, enhances personalization, and identifies points of fraud vulnerabilities faster – to name a few.
At Alogent, we’re all about innovation. Our automated end-to-end deposits automation platform, Unify, gives financial institutions the efficiency and modernization to lead market innovation, stay ahead of the trends, and boost efficiency, while keeping costs down.
contact us today to explore industry-leading solutions for your bank or credit union.
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