In a challenging economy banks are looking for new ways to sustain revenue as profit margins recede. As part of a Bank’s and/or Financial Institution’s self-assessment they are looking for ways to cut cost and increase profits while adding new accounts.
Since checks are the second largest form of non-cash payments, banks are looking at check services to reduce operating cost and add additional income. Today many banks manually sort and mail returned checks to their Merchants. This is a hard resource cost that could be eliminated or shifted elsewhere. Typical manual collection attempts result in a low success rate (25-35%). A bank may look to automate or outsource these tasks however a major concern when implementing a new service is the large upfront cost and potential to not meet their projected Return of Investment.
checXchange™ not only cuts cost by taking on the collection responsibilities but also increases the total asset turnover with a profitable revenue share opportunity, proving to be a “value added program” for financial institutions. checXchange™ is a free service and simple to implement. Returned checks are routed from the bank or financial institution to checXchange™ for processing. This reduces overhead of sorting through paper checks and cuts back on handling cost. Once at checXchange™, returned checks are electronically re-presented strategically. This allows for additional collection attempts and increases the success rate to 75-85%. This helps banks and financial institutions to entice new customers, as well as improve customer service for existing commercial relationships. Merchants benefit as they receive funds for 100% of the check’s face value collected electronically and banks have the opportunity to earn non-interest income. Merchants are provided with free online reporting to monitor and reconcile their outstanding checks, updates via email or fax are also available at no additional cost to merchants. This removes the support and liability from the financial institution to checXchange™. In addition, our customer service will handle the training and implementation of the checXchange™ service. checXchange™ lowers re-presentment fees, postage fees, supply fees and reduces the amount of labor needed to process returned checks. By partnering with checXchange™ Banks and Financial Institutions are better able to meet their goals and satisfy their customers.