21 Years Later - Check 21 Law: Automation of Checks

The Check 21 Law, a vast improvement in check processing, was needed to keep the banking system operating even during times such as 9/11. Following 9/11 reasonable methods for shipping checks came to a stop (all planes were grounded) and made it difficult for checks to be deposited and cleared by banks any distance away.

What happened 20+ years later? Have paper checks gone the way of dinosaurs?   Check Automation Blog Images-03

  1. Checks travel electronically instead of in planes, trains, and trucks
  2. Processing efficiency and time to submit a check to a bank for payment are vastly improved - even instant clearing is common today
  3. Check automation reduced risk and liability for banks
  4. Paper check sorters became as extinct as dinosaurs, and checks changed to electronic files
  5. The speed of processing decreased check fraud and check kiting, initially.

Here are a few examples of things that have been automated since 2004:

  • Online Check Deposits
  • Loan Origination Online
  • Loan Processing
  • Deposit Gathering Online
  • Compliance and Risk Management
  • Debit Card Fraud Detection
  • Money Laundering Detection
  • Branch functions – tellers
  • Marketing tasksCheck Automation Blog Images-02
In what other ways is your organization automating tasks and processes? Automation of data management is the next big thing. Data Management techniques bring all of your organizations data together and helps to empower decisions. 
 
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Author: Denise Butler