Over $1m in annual savings in bank lockbox operations

The Client

Mid-sized Regional Bank

Challenge

• Demanding deadlines for lockbox processing compounded by volatile volume
• Diversity in client requirements, limited standardization
• Very high infrastructure cost
• Decentralized operations that reduced the ability to standardize processes
  
  

Solution

• Use of the SmarTrans model to analyze Business Operations
• Process improvements implemented:
• Standardized single workflow across multiple centers
• Review using images (vs. paper)
• Use of OCR/ ICR recognition engine to reduce data entry effort
  
  

Execution

• Leveraged 24x7 offshore delivery model for Item Entry, Remittance Entry, MICR Correction, Scan-line Correction
  & Data Entry
• Eliminated manual work (60% of total effort) using OCR from Kofax and IBM check processing control system
  Quantum reduction in Operational Costs
  
  

Value Delivered

• Quantum reduction in Operational Costs
  • Cost saving of $750,000+ per year from workflow changes
  • Cost reduction of $250,000 per year from outsourcing
• Long term process improvements through business process and technology upgrades