17 September 2014

Commerce Bank extends use of Alogent payment-processing tech

23 July 2013  |  964 views  |  0 Source: Commerce Bank

Jack Henry & Associates, Inc. is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars division announced today that Missouri-based Commerce Bank has extended its use of Alogent Payments Gateway.

Alogent Payments Gateway now provides Commerce a single solution for processing both image and paper check transactions across all intra- and inter-bank points of presentment including branch, remote deposit, the back office, ATM, and lockbox. It simplifies the transformation of paper-based transactions to image-enabled processes. The bank previously was using platforms built specifically for managing paper checks. With today's image-centric environment, it needed to replace dated systems with one that accommodated simplified and consistent processing across all items coming into its back office. Selecting Alogent Payments Gateway enabled Commerce to replace five disparate vendors' systems with just one, comprehensive system.

Greg Nickle, executive vice president and operations manager at Commerce, explained, "We have simplified vendor management to a single partner for front-end capture at the branch through to backend posting. In addition to adding new efficiencies, Alogent Payments Gateway allowed us to move our higher-cost processing infrastructure to one with much lower operating expenses – we expect annualized savings of about a half million dollars."

Alogent Payments Gateway collects and retains items captured throughout the day and supports balancing, reject and code line repair, as well as the creation of cash letters.

Commerce once needed up to 14 minutes to create a 20,000 item cash letter; the same one can now be generated in a fraction of the time and be automatically forwarded to the Federal Reserve or other clearing exchange for final resolution. Alogent Payments Gateway enables complete image-based processing functions like image assurance, validation and archiving, reporting and extract functionality, and routes transactions to appropriate endpoints for final processing, clearing, and settlement.

According to David Foss, president of ProfitStars, "A significant source of financial institution operating costs is related to maintaining legacy software systems. As unit costs for check processing increase in the face of declining paper processing volumes, the time is right for many financial institutions to move forward with legacy check processing transformation.

Banks like Commerce that manage large volumes can gain great benefits from a single solution that streamlines processing across all points of presentment. Alogent Payments Gateway provides a way to achieve optimal performance and seamlessly scale up, down, or out in response to changing conditions and future market opportunities."

Commerce originally installed Alogent Payments Gateway to support its Alogent Back Counter branch capture solution in 2010 and had already achieved annualized cost savings in the million-dollar range. 

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