Lockbox & Distributed Branch Capture
Wholesale Lockbox & Distributed Branch Capture
As a part of their service delivery model, many corporations receive payments not only at a lockbox location but also at their distributed branch operations. The volume of payments collected at the branch locations could vary widely. In addition, the branch may offer point of sale (POS) transactions. While it may be preferable to centralize payments to a lockbox, distributed receipting and dispute management frequently provides these corporations with a significant competitive advantage.
The downside related to the distributed aspects of this model is issues related to financial control, timely access to information in the AR system and integration with the lockbox workflow.
Corporations can leverage the advantages of this hybrid model and build an even more sustainable competitive position while maintaining financial control by introducing the following process changes with OPEN SCAN:
At the lockbox:
- Paper payments will still be received at the bank lockbox.
- Upon lockbox scanning of the check and remit, images will be securely downloaded by the OPEN SCAN software to your corporate location.
At your branch location:
- Branch personnel will scan checks and remits as received either through the mail or directly from walk-in customers through a lightweight “smart” client local application.
- A POS interface can be provided for on the spot purchase transactions
- Images will be transmitted automatically to your shared services or centralized data center corporate location
At your corporate location:
- The OPEN SCAN software will reside behind your firewall.
- Data will automatically be extracted from images flowing in from both the lockbox and branch locations.
- Extracted data will be intelligently matched against an open invoice file and established business rules.
- Cash application personnel will complete minimal exception handling including deductions and short pays from a single user interface screen.
- Decoupled electronic or email based payments and remittances will be integrated into the work flow.
- The OPEN SCAN solution will export a highly accurate posting file in a standardized format to the AR system at the end of the business day.
- An Image Cash Letter will be generated for electronic deposit of checks received from the distributed locations.
- If configured appropriately, branch personnel can access images, data and transaction status for local dispute management.
This hybrid model incorporates existing lockbox receipting with in-house processing and will extend the range of benefits that directly impact operational efficiency:
- Provides access to check and remit images the same day as received by the bank eliminating the unnecessary storage of paper documents
- Creates an integrated receivables workflow of all payments whether they arrive at the lockbox or the branch or electronically.
- Completely automates the extraction and posting of remittance data
- Cash application occurs the same day both paper and electronic payments are received
- Exception handling is easily researched and managed from a single screen without the need of consulting a bank portal or the A/R system
- The data accuracy of the posting file to the back end A/R system is in the high 90% range
- Deductions and short pays are efficiently processed
- A/R, and frequently Collections, personnel are far more productive and free to engage clients in more business driven conversations
- Cash application and dispute management can be placed at the greatest point of efficiency and customer service; either the branch or corporate location.
- IT involvement to implement and support the software is minimal
The end result is a more automated, simplified and faster process. It is often days faster, which complements the rapid deposit benefits of a lockbox while delivering far more control over cash posting with increased employee productivity.