A super regional bank was looking for methods of streamlining its item processing operation, shortening the processing cycles, reducing the overall costs, and decreasing the complexity of the number of constituents involved in the overall process.


It was determined that the 75% of the non On Us checks came from 3 major banking institutions. The feasibility of establishing an item processing arrangement directly with these institutions rather than through the Federal Reserve was evaluated inclusive of services and service levels, operating standards, policies, procedures, terms and conditions, technical solutions, integration capability, governance and controls, fraud, fees, and other key aspects of such an important relationship. The decision was made to implement the direct item processing integration between the super regional bank and the 3 major banking institutions. The solution was successfully implemented.


The direct integration and automation of the item processing between the super regional bank and the 3 major US firms significantly reduced the processing cycle times, overall process costs, human error, and an increase in NSF revenue.