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Title: Banks Prepare For Image Capture: Bank One and Well Fargo among...

Author: Marlin, Steven Article Type: Product Analysis
Source: Information Week, v987 p67(2) Publication Date: May 3, 2004
  ISSN: 8750-6874
URL of Publication: http://www.informationweek.com

Bank One and Wells Fargo are among the banks beginning to test scanning checks at the point of deposit in ATMs and teller stations, and transmitting the image to the bank on which they are drawn instead of sending the paper checks for processing. Banks will be permitted to send scanned images starting in October 2004 under the Check Clearing for the 21st Century Act. The banks are among 22 banks which have formed Small Value Payments, a check clearinghouse at the forefront of the image exchange. AT&T will provide a secure private network for transmitting the images. Some banks are not yet ready to commit to spending on the infrastructure required. The largest banks will be the first to implement the system. One issue for the industry is what do with their current check processing operations. They are core operations for many banks, but check volumes are declining. Larger banks providing check processing for smaller banks is one possibility.

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