A Closer Look at the Benefits and Costs 

While outsourcing remains the most popular choice for item processing among credit unions, a widespread shift toward in-house solutions is clearly underway. Moving this function in house offers a unique set of benefits, among which are cost savings, more control, greater flexibility and streamlined operations. As their existing outsourcing contracts come due for renewal, this combination of factors has prompted credit unions to evaluate in-house solutions and compare options.

Outsourced item processing involves forwarding checks—either paper or images—to a third-party, who processes the items, transmits them for exchange, acts as an intermediary for settlements and maintains image archives. In-house item processing involves capturing a visual image of a check and directly transmitting for settlement it to a clearing bank, another financial institution or a third-party image exchange provider. Full image archives are created and maintained by the credit union.

This white paper further explores the benefits to financial institutions of moving item processing in-house. It examines the process, costs and requirements for the successful implementation of an in-house solution.

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