Navigating the Shift From Outsourced to In-House Item Processing

Tulsa, Oklahoma-based Saint Francis Federal Credit Union (approximately $30 million in assets) made the decision to bring its item processing in-house in 1992. The goal was to eliminate the cost and inefficiency inherent in relying on third-party interceptor and settlement relationships. They established their direct relationship with the Federal Reserve at the same time.

Check21 and the advent of image exchange presented the credit union with a critical decision: maintain in-house but paper-based item processing, or outsource to a third-party provider or corporate credit union. In 2007, they decided to install a branch-based, Check21 solution from Bluepoint Solutions for the forward presentment of items to the Fed, while continuing to receive incoming paper.

In this webcast, Bluepoint Solutions discusses the results of its comprehensive item processing study, and A Federal Reserve representative gives an informative report on the evolution of Check21 and image-based item processing, and Tom Eaton, CEO of Saint Francis FCU, provides insight on his institution’s experience with processing items in-house:

  • Currently available Item Processing solutions
  • Technical requirements for implementing an in-house system
  • Criteria for evaluating the benefits of in-house vs. outsourced solutions
  • Cost control strategies and member service improvements from going in-house
  • Staffing and maintenance requirements of operating an in-house solution
  • Handling of in-clearings and returns
  • The effect on costs of presenting items directly to the Fed

Other Webcasts