Source: SVPCO Image Payments Network
Financial institutions connected to the SVPCO Image Payments Network have begun forming new correspondent clearing relationships that are spurring the growth of image exchange among regional institutions and further reducing check processing costs.
In the past few months, Wachovia Corporation, Wells Fargo & Company and other banks have begun sending one another volumes of check images, which are being routed for clearing to local banks not connected to the Image Payments Network. This allows financial institutions to more efficiently route these transactions electronically, replacing time-consuming and more expensive ground and air transportation. The receiving institution then provides a service to deliver them, via image or substitute check. Benefits accrue to all participants in the delivery channel.
"This new use of the Image Payments Network represents an excellent opportunity to further leverage our investment in image exchange and put even more volume through the system," said Luke Huys, Senior Vice President in Operations and Technology of Wachovia. "As a result, Wachovia will further reduce check processing costs while reaching more endpoints. We look forward to working with other institutions like this through the Image Payments Network."
The SVPCO Image Payments Network was originally designed with the flexibility to carry many different types of data to enable participants to optimize their network connections. In addition to new applications, such as transmit volume exchange and correspondent processing, the network supports transmittal messaging, the forward presentment of image cash letters and administrative returns and transportation to the Federal Reserve and Endpoint Exchange.
Mitch Christensen, Executive Vice President, Payments Strategies, Wells Fargo, said: "Wells Fargo will realize a double benefit by partnering with institutions on the Image Payments Network to clear regional checks. We will be able to offer a new, fee generating service, while further cutting the costs of check processing. By adapting the network for correspondent clearing purposes, Wells Fargo will process more image exchange volume."
Another new use of the network is that participants are providing capabilities for their downstream correspondents to send cash letters using the SVPCO Gateway DTA connection. This is an easy way for correspondent banks to better serve their customer's image needs by replacing ground transportation with electronic delivery.
Susan Long, Senior Vice President of The Clearing House, responsible for SVPCO, said: "I am pleased to see participants in the network finding new innovative ways to obtain value. This is becoming more important as the cost of clearing paper checks is rising rapidly."