Remote branch cash letter alternatives - What you should look for

Northwestern Financial Review, Aug 15-Aug 31, 2005 by Rosenbrook, Troy

With the passage of the Check Clearing Act of the 21st Century last October, we are seeing a host of new "Check 21 services" - in particular, new services that enable banks to deposit checks electronically from remote branches. This opens the door to a more efficient - not to mention convenient - cash letter deposit process. Processing your cash letter electronically can reduce your transportation and insurance costs as well as provide faster funds availability and returned item notification.

But be careful in selecting a service - many of the services offered do little to increase efficiencies and require expensive new software that may become obsolete in a short time. What to consider:

Is the service Internet-based? The vast majority of offerings require software installation - software that must be installed, maintained and upgraded at every business location. Instead, consider services that allow for remote deposit through the Internet. An Internetbased service doesn't require expensive IT resources and upgrades can be performed instantly.

Does it provide an end-to-end solution? Once you deposit your cash letters, the system should facilitate the upload of depository information to your accounts receivable systems and allow you to review depository transactions and account activity immediately, online.

Does it offer an extended depository window? You should receive ledger credit for deposits made anywhere in the United States until 7 p.m. Pacific Time, so additional cash letters can be included in a day's deposit.

Do you already have check imaging hardware? If you already have check imaging hardware that captures key check data (e.g. MICR line), consider services that allow you to create and electronically transmit a file of those deposits directly to your depository bank.

The ability to make electronic cash letter deposits from remote locations reflects a fundamental shift in the collections process as it allows you to deposit checks electronically at any location throughout the country. The movement from paper to electronic check deposit is driving an ever-increasing array of new payment efficiencies - consider getting on board.

By Troy Rosenbrook, Senior Vice President, Wells Fargo Correspondent Banking

To learn more about Wells Fargo's online Check 21 solutions please contact Troy Rosenbrook at 612-667-1478, Catherine Morrissey at 402-434-4119, or visit our website at: www.wellsfargo.comlcomldesktopdeposit. Member FDIC. © 2005 Wells Fargo, N.A. All rights reserved