T. Houston Technology Group released the 2010 Remote Deposit Capture Rules and Training Guide. The Guide is a great tool for training End Users (Customers) about the technology and the legal and regulatory rules that govern it.
According to Houston, “We wrote the Guide for several reasons, but specifically to provide financial institution managers with an easy to use Training Guide for their customers. The Guide explains the basics of Remote Capture technology and the requirements to comply with state and federal guidelines. For example, a Risk Management Policy is required by the FFIEC and is provided as part of the Guide.”
Financial institutions should be careful about purchasing cheap agreements and not considering all of the documents required to comply with FFIEC Guidelines for Risk Management of Remote Deposit Capture. Houston added, ”The FFIEC guidelines are clear about the responsibilities of financial institutions providing Remote Deposit Capture and future federal and state audits will require proper documentation.”
Required by regulators and seen as an important tool in professional bankers, an IT audit tests the controls that surround and protect the bank's mission critical systems.
The comprehensive examination reviews management plans and controls, security resources and operations and electronic policies and procedures to ensure that they comply with federal, state and industry standards.
All banks that connect to the Internet, not just banks with Internet banking, are required to conduct a third-party examination. The connection to the Internet creates new risks of unauthorized access and regulations require that banks operate with strong controls to protect customer and bank data.
The IT Audit includes:
Determination of the effectiveness of policies and procedures and their consistency with safe and sound banking practices.
Determination of the bank's effectiveness in controlling the risks inherent in data processing and electronic delivery systems.
Evaluation of security risks and vulnerabilities in the data processing and Internet banking systems and proposal of possible solutions to control security risks.
Merchant Check Capture
Written by Tom Houston
Wednesday, 09 December 2009 23:43
Check 21 became law -- but nothing happened. For many banks it was like Y2K, where there was a great deal of activity, but nothing really happened. Actually, with Check 21, there is a great deal of excitement brewing in the programming departments of software companies across the U.S. as they retool check image systems to allow merchants to capture their own checks.
Merchant check capture may be the greatest innovation since the account number.
Strategically, Merchant Check Capture -- Check 21 means that you can market the bank's products outside of the driving distance for making deposits -- a huge barrier now.
Although the hardware and software that banks use for capturing checks can be intimidating, advanced technology can now be delivered with a very small footprint. Starting with systems that are small enough for "mom and pop" merchants -- but scalable to very large merchants, check technology allows banks to deliver Check 21 benefits to all of their customers.
Check 21 introduced a lot of new terms and requirements -- but the basic concept is still the same; customers receive and deposit their checks, but the process is significantly streamlined.
Real Win-Win Partnership
The customer wins with a system that reduces the time and expense of making deposits and receives faster availability of funds.
The bank wins with a customer retention system that generates recurring fee income and lowers the expense of operating the back office. After all, it's just a check.
The program includes:
Strategy Worhshop
Many banks have chosen to participate in Cash Management to maintain their competitive edge. They are now asking how they can make this valuable service more profitable for their bank.
This one day workshop includes everything you need to know about Cash Management Products and Services, Check 21, Marketing, Sales Training, Policies and Procedures, Applications and Agreements and more.
Business Plan and Risk Assessment Report
Required by regulators and critical to the board's understanding of Check 21, the Business Plan and Risk Assessment define the profit potential, risks and mitigation controls in your bank.
Products and Services Development
This segment focuses on how to position Check 21 services with other Cash Management products and services. Once completed, a blueprint is published for a well balanced and advanced product line.
Pricing and Features
There are dozens of different ways to price Cash Management services. Our approach starts with a competitive analysis of all the banks in your marketplace. From there, we help you decide on a solid profit strategy.
Marketing Materials
With more than two decades of marketing and training experience -- we help develop fresh and creative ways to attract customer attention to your system. We are not only experienced with traditional marketing techniques, but capable of creating DVD infomercials.
Sales Training
Banks that use our marketing and training program consistently exceed their launch goals. Our approach to sales training concentrates on relationship building -- not "product pushing". Customers will want to do business with professional banks who understand and can explain the benefits of using their products.
Policies and Procedures
Check 21 is new and requires crossing the T's and dotting the i's. Regulators look closely at new technology and the entire operation must be fully documented. We start with current policies and procedures and update them or implement new ones. Our scope includes all Cash Management policies and procedures -- not just Check 21.
Agreements and Applications
All documents that are required for implementing Check 21 are provided with the program. Although we are not attorneys, our documents will save you considerable time during the review process.
As you can see -- this is the most comprehensive program available for community banks. Call us and let's get started.
