Frost Bank of San Antonio, Texas, is now delivering remote capture to several of its commercial clients.
Working with NCR Corporation (NYSE:NCR), Frost Bank can now forward image-based cash letters, rather than paper checks, on behalf of its commercial clients to the Federal Reserve for clearing to the paying banks.
Frost Bank has already moved several commercial customers to NCR's ImageMark application and plans to gradually provide the service to additional commercial customers. Taking advantage of opportunities created by the Check Clearing for the 21st Century Act, Frost will be able to help clients reduce processing costs and enable faster internal reconciliation.
Using NCR's ImageMark Commercial Passport application, a pilot group of Frost customers capture magnetic ink character recognition, or "MICR," data and the front and rear check images to build daily deposits. NCR's recognition and balancing tools efficiently build balanced deposits that are then electronically delivered to Frost for clearing. NCR's ImageMark Transaction Manager system receives the image deposits, further validates each item and performs any necessary corrections. Frost then creates an image cash letter for clearing. This combined solution allows the original checks to be retained by the commercial client at point of entry into the processing system and not be sent to the bank. Frost expects to increase the volume of items in its image cash letter.
"Our commercial customers see the sweeping changes in payment processing as a substantial benefit," said Gary McKnight, Frost's senior executive vice president for operations and processing. "By delivering remote deposit capture to our customers through NCR's ImageMark Commercial Passport application and then integrating that into ImageMark Transaction Manager in our central operations, we ensure that our commercial customers' electronic deposits continue to be processed soundly and securely. We look forward to gaining efficiencies in processing and providing our customers with the ability to improve their internal reporting capabilities with electronic updates to their accounts receivable and other systems."
"Frost Bank and NCR have a long and successful history and we are pleased to deliver these leading-edge solutions to them," said Joe Kniceley, NCR Payment Solution's vice president of Sales for the Americas. "Frost's successful implementation of remote deposit capture reinforces the strategic importance of end-to-end imaging solutions as financial institutions look to deliver new value-added, competitive services to their customers."