CheckImage Track 

Driving Down Costs and Maximizing Return on Your Image Investment

 
Significant progress has been made in automating check processing. Yet, non-standard images, exceptions, returns and other residual items continue to drain both revenue and efficiency. Many banks are already redefining exceptions to be any type of payment that “hops the rail” for any reason – whether for adjustment, stop pay or non-standard processing. Adjustments are also becoming increasingly complex in the era of direct exchange. In addition to these challenges, payments professionals face a host of other crucial issues, from the impact of Regulation CC to mobile consumer remote deposit capture (RDC).

The CheckImage track explores the operational impact of these trends and topics with new insights on check clearing and settlement as digital forms reshape the payments industry and drive efficiency. 

Actionable Take-Aways
Reduce uncertainty about pending regulation and the right strategy as you develop your business plans:

  • Where is the leading edge of RDC now and where is it heading
  • A comparative look at the multiple forms of RDC today
  • What changes in Reg CC will mean to your check operations
  • What’s working in the struggle against duplicates in RDC
  • Problems and policies in routing and transit numbers
  • The truth about businesses and paper checks

  1. Transaction Capture: Anywhere, Anytime, Anyone

    Monday, March 12
    9:45 AM - 10:45 AM

    Steve Cree, Payment Systems Architect, Sterling Savings Bank
    Brad Ganey, Senior Vice President, Chief Operating Officer, Catalyst Corporate Federal Credit Union
    Marie LaQuerre, former Senior Vice President, Business Executive, Bank of America
    Steve Max, Senior Vice President, Deposit Processing Division, U.S. Bank
    Moderator: David Kliewer, Major Accounts Manager, MTS Software Solutions

    With the evolution from central and regional capture to “distributed capture” and more recently multiple distributed capture channels, there are major benefits to be gained from both customer convenience and cost reduction.  Many factors such as customer demand, cost benefit and risk must be considered as a bank moves into these increasingly distributed capture channels and products.  This session will address the challenges banks are experiencing as they implement these expanding capture channels, as well as customer acceptance and satisfaction in the new capture vehicles.  Risk considerations relating to fraud detection, duplicate transaction detection and enterprise transaction view across these varied capture sources will also be addressed.  Finally, how risk mitigation can be balanced with attracting new customers and providing a high degree of customer satisfaction with these distributed capture products will be addressed.

    • Strengths and challenges of each capture channel
    • How each channel feeds into back end processing systems
    • How each channel handles risk management
    • How channels come together and how risk, fraud, duplicates are handled

  2. Fed Town Hall

    Monday, March 12
    11:00 AM - 12:00 PM

    Brian Egan, Senior Vice President, Operations, Retail Payments Office, Federal Reserve Bank of Atlanta
    Cheryl Venable, Senior Vice President and Product Manager, Retail Payments Office, Federal Reserve Bank of Atlanta
    Julius Weyman, Senior Vice President, Product Development, Retail Payments Office, Federal Reserve Bank of Atlanta

    The Fed leverages products and policy in its effort to serve as a catalyst for payments industry change. This annual forum features Federal Reserve officials discussing critical topics in retail payments today. Hear firsthand from Fed experts their view of major payments challenges and future directions in payments and how the Fed strategy is evolving to meet them. This year’s panel will take place in the context of one of the greatest periods of change for the payments industry in decades, and the Fed is at the center of defining how broad legislation will show up in tangible regulations.

  3. Reg CC: What could the changes mean to me?

    Monday, March 12
    2:15 PM - 3:15 PM

    Joseph Baressi, Financial Services Project Leader, Federal Reserve Board
    Janice Havins, Vice President – Assistant General Counsel, JPMorgan Chase & Company
    Elissa Reynolds, Senior Vice President, Operations Manager, Bankers’ Bank Northeast
    Moderator: Angie Smith, Senior Manager, Education Services, Viewpointe

    In March 2011, the Federal Reserve Board requested public comment on proposed amendments to Regulation CC (Availability of Funds and Collection of Checks). When the comment period closed three months later, the Federal Reserve Board had received more than 80 comment letters from national and local banking and credit union associations, financial institutions, and other industry influencers, highlighting the needs and concerns of different segments of the financial industry. This session will provide insight into the lively and differing perspectives surrounding several proposed amendments and offer a front-row seat to engage in the dialogue surrounding regulatory change. It will include:

    • An overview of the changes proposed plus the current status of Reg CC provided by a representative from the Federal Reserve Board
    • A moderated discussion among financial institution representatives who will share their views on the most controversial issues included in the request for comment, addressing topics such as same-day settlement, large-dollar return item notifications and more
    • Next steps toward resolution and implementation of changes to Reg CC

  4. Sorting Out Routing Numbers

    Monday, March 12
    3:30 PM - 4:30 PM

    Robert Coyan, Senior Vice President, Marketing & Operations, Corporate One Federal Credit Union
    Jim McKee, Senior Vice President, Financial Services, Federal Reserve Bank of Atlanta
    Luke Huys, Senior Vice President, Wells Fargo
    Moderator: Tony Gerevics, Managing Director, JPMorgan Chase

    Born in the age of paper checks, the hundred-year-old system of check routing and transit numbers is now outdated and ripe for change.  The geographically-based RT system is no longer the optimum solution for the delivery of electronic check items, where physical locations are irrelevant to the presentment process.  The system is currently being analyzed by a subcommittee in order to develop new ways to take full advantage of the opportunities afforded by image processing. The problem extends beyond mere inefficiency, introducing elements of risk into the check payment system. Fraudsters are taking advantage of delays in the return process, where items with retired RTs are sent to the original FI, rather than automatically being returned. This session will examine the possibilities of modifications to the current RT system. The presentation will include:

    • Brief overview of the current RT system, how it works, and its history
    • Issues with the current system
    • Unique challenges the Fed faces with regards to the existing system and potential changes
    • Update on the activities of the ABA RT Policy Modernization Subcommittee
    • Stop gap solutions as well as ideas for wholesale redesign
    • Potential solutions and answering audience questions

  5. ECCHO Briefing: Invest in Yourself, Become a National Check Professional (NCP)

    Tuesday, March 13
    7:15 AM - 8:15 AM

    Jennifer Johnson, Director, Sponsoring Organizations Relationships, ECCHO
    Phyllis Meyerson, Executive Vice President, ECCHO

    During the last five years, there has been more change in the check payment system than ever before. Almost 100% of forward presentment is now processed electronically. Checks are still written, as the payment of choice, in one out of every four non-cash payments. Given the significant market for check, the degree of operational and product change resulting from image exchange, and the level and complexity of regulatory change, payments professionals need to maintain and cultivate check expertise. ECCHO and its partners are pleased to announce the launch of the National Check Payments Certification program to provide and recognize check expertise. Join ECCHO for breakfast and learn how you can become a National Check Professional:

    • The material covered on the exam
    • Successes and lessons learned from the pilot 
    • Study tips 
    • Recognition of the first class of NCPs 
    • Information about the production program

  6. Image Interoperability Standards, Companion Documents and Other Friends

    Tuesday, March 13
    9:45 AM - 10:45 AM

    Mark Kielman, Industry Relations Manager, Retail Payments Office, Federal Reserve Bank
    Dan Welch, Senior Vice President, Bank of America 
    Moderator: Cheryl Yavornitzki, Payments Relationship Manager, LendingTools.com

    X9.37 is out of style? X9.100-187 is the new trend? And just what is X9.100-140 IRD? In a perfect world, the process of adopting image exchange formats would be simultaneous and uniform. But in the real world, multiple processing platforms and exchange networks make interoperability a challenge. Image standards and exchange based variations came to the forefront in 2010 when the Federal Reserve implemented new compliance standards for image cash letter processing. This session will provide practical clarity into the process that has evolved for maintaining and adopting image standards within the banking industry. Attendees will hear from panelists who have taken leading roles in developing how to define and produce check information in digital form. Whether your institution runs item processing in-house or through a service bureau, this session is a must for operations professionals to understand the still evolving world of check image exchange.

    • What is the ANSI X9 Committee and how does it function? Key differences between X9.37 and X9.100-187
    • How does the Universal Companion Document fit into the field validation process?
    • What do I need to know to make sure my item processing vendor or service provider is staying up to date?

  7. Case Studies: The Next Step in Duplicate Detection

    Tuesday, March 13
    9:45 AM - 10:45 AM

    Mike Beach, Vice President, Image Payments, Fifth Third Bank
    Flavia Krone, Vice President, Operations Support, Bank of the West

    Managing duplicate transactions has been a challenge since the very early days of image exchange, and as potential points of origin continue to increase, the risk of duplicates is growing exponentially. In this session, two leading-edge banks will highlight their current operations and describe what the future holds for the identification and resolution of duplicate transactions. Specific topics include:

    • Key pain points -- false positives, cross channel duplicates and cross payment type (ACH) dupes -- where will they show up next?
    • Identifying duplicates at the teller line, ATM or RDC -- is there a need to replicate duplicate detection?
    • Impact of consumer capture on duplicates and associated risks -- are we inviting trouble?
    • Merits of a national check database on duplicates -- how can the industry cooperate to detect dupes across institutions?

  8. Illuminating the Back Office in an Image World

    Tuesday, March 13
    11:00 AM - 12:00 PM

    Kent Smith, Managing Director, Operations Executive, Virtual Payments & Float Management, JPM Chase
    Angie Smith, Senior Manager, Education Services, Viewpointe
    J.R. Thornton, Senior Consultant, Carlisle & Gallagher Consulting Group

    The payments process has evolved tremendously over the last five years with the adoption of image exchange, and every facet of this change has had an impact (positive or negative) on "traditional" back office practices. In this panel discussion, attendees will have an opportunity to hear the challenges brought about by these process changes and to better understand areas that have been positively affected by true change agents within our industry. At the session's conclusion, attendees will be able to better identify the areas that may offer prospects for process improvement and gain insight as to how to incorporate best practices into their own bank operations.

    • The relatively unknown features of XCK ACH transactions
    • The complex web of direct exchange adjustments
    • Improving efficiencies in traditional exception item processing
    • How to best get all banks to follow accepted rules and guidelines

  9. CheckImage Peer Group Discussions

    Tuesday, March 13
    2:15 PM - 3:15 PM

    Peer group sessions bring you together with operations, technology and payments managers from institutions comparable to yours. In the peer group session, you determine the agenda as you pursue your institution’s specific information needs with the help of expert facilitators.

        Financial Institutions Less than $10 billion in assets

        Facilitators:
        David Rathke, Senior Vice President, Float Manager, Frost Bank
        Rick Kuhn, Senior Vice President, Program Manager for Operations, First Niagara

        Financial Institutions Greater than $10 billion in assets

        Facilitator:
        Tony Gerevics, Managing Director, JPM Chase
        David Kliewer, Major Accounts Manager, MTS Software Solutions

  10. From the Source: The Payments Preferences of Businesses

    Tuesday, March 13
    3:30 PM - 4:30 PM

    Michael Parker, Treasury Cash Manager, OFS Fitel
    Keith Payne, Principal, Cash Management and Short-term Finance, Southern Company
    Spencer Shell, Vice President & Assistant Treasurer, ING US Insurance
    Moderator: Jenny Johnson, Director, Sponsoring Organization Relationships, ECCHO

    Checks are still the payment of choice for many businesses. According to the 2010 Fed Payments study, checks originating from businesses have declined at a much lower rate than consumer-originated checks. Find out first hand why check is still a valued payment type for businesses and just how they make their payments decisions.  Take advantage of the opportunity to ask the participants about their current and future payment strategies. Hear whether the industry should expect business check volumes to decline and whether mobile and other payment types are being considered in their plans.  Businesses will also share:

    • How and why they determine their payment mix
    • How they would like to interact with their bank(s) with regards to payments strategy
    • How recent economic conditions have impacted their payment decisions
    • What factors would cause businesses to re-think their current payments strategies

  11. Mobile RDC: Beyond the Hype

    Wednesday, March 14
    9:45 AM - 10:45 AM

    Alex Jimenez, Senior Vice President and Director, Digital Channel Management, Rockland Trust Company
    Patrick Reetz, Head of U.S. Online and Mobile Banking, North American Integrated Channels, BMO Harris Bank
    Darcy J Samson, Vice President, Small Business Deposits, U.S. Bank
    Carl Shishmanian, Executive Director, Deposit Services, JPMorgan Chase
    Moderator:     Bob Meara, Senior Analyst, Celent

    A rapidly growing number of financial institutions are planning on offering mobile remote deposit capture (RDC) capability to consumers and businesses alike. Doing so invites a number of considerations. Among them, risk and compliance are top concerns. This panel of early-mover financial institutions will discuss key considerations that defined their mobile RDC product initiatives as well as the results obtained. Financial institutions not yet participating in mobile RDC will learn from the early-movers in areas such as:

    • What market segments are best served through mobile RDC and why
    • What levels of customer adoption can be expected
    • How to effectively address the risks associated with mobile RDC
    • Business case considerations for mobile RDC
    • Operational results: the good, bad and the ugly

  12. Image Exchange Segments – Slice by Slice

    Wednesday, March 14
    11:00 AM - 12:00 PM

    Cay Landowski, Vice President, Product Support Manager, U.S. Bank
    Jim Lansing, Senior Vice President, Float Management, Wells Fargo  

    Image exchange has evolved since Check 21 from a straight forward exchange of on-us items between the major check clearing channels to a refined exchange process addressing changes in the industry and customer needs. Financial institutions' efforts to tackle these changes need to take into account the various segments that each financial institution interacts with, including exchange partners, correspondent banks, corporate clients, government entities, small business, ATM, retail, etc. This presentation illustrates the emergence of these image exchange segments and how the image exchange strategy and approach of two different banks evolved to meet the needs of their exchange partners and customers. Areas of focus include:

    • How to address the unique image exchange settlement needs when multiple networks or customer bases are involved
    • How to incorporate both cost and revenue elements into image exchange
    • What approach to take solving for day one and two exception processing nuances across multiple segments
    • How to stay in front of image exchange regulatory, industry and technology challenges for each segment