How Banks Should Choose a Courier Service (Hint: They shouldn’t.)

Horse-drawn carriage at the bank

Is your bank still using a courier service?

OK. So maybe the title of this blog post is a little misleading, but a title like “Don’t Choose a Courier Service” is a bit harsh. Don’t you think?

Despite all of the technology available today combined with the imperative for for banks and credit unions to increase efficiency and reduce costs, it’s a wonder that there are many financial institutions that are still transporting paper checks, applications, loan documentation, etc. the old-fashioned way – via courier services.

Some of the ways that financial institutions are still using courier services include:

  • Transporting items between branches and central facilities
  • Carrying items for financial processing done either in-house or by an outside provider
  • Delivering mail from post offices
  • Delivering deposits from clients to be transacted in a certain branch

The items or business processes that financial institutions are using courier services may include:Message in a Bottle

  • Payroll Pick-Ups
  • Payment Deposits
  • Branch Pick-Ups
  • Branch Deliveries
  • Check Deposits
  • Tender Exchange
  • Financial Transactions
  • and more…

While it may not quite be “horse-and-buggy old”, physically moving these paper files around in bank bags is just about as obsolete. Instead of providing tips for how to choose the right courier service for your business, I’d like to make a case for not choosing a courier service.

Why Not to Use a Courier Service

1. Obsolete

Way back when, every deposited check was shipped to a check clearinghouse each night for processing in order for the transfer of funds between the two financial institutions to take place. Today, sophisticated check scanning equipment enable Branch Image Capture (BIC) and Remote Deposit Capture (RDC) technology. The BIC process captures check images and MICR lines via a check scanner located at a branch location.

2. Insecure

This is not a comment on the assertiveness or self-confidence of the bike messenger or courier service provider who may be showing up at your bank everyday. I’m sure he/she is a wonderful person. Nevertheless, putting physical documents that contain highly sensitive information in the hands, bag, vehicle of someone who does not work for your organization and may or may not be privy to regulations that govern information security is a risk. Doing away with transporting physical documents eliminates the risk that these documents may get lost, stolen, or damaged in transit.

3. Costly 

There are a number of inherent costs with transporting checks and paper files instead of processing them digitally and locally. In addition to the costs of the service of transporting the documents on a daily basis, there are also costs of purchasing and maintaining the bags, the time lost by processing the documents off-site, and the salaries of off-site processing facility employees.

1 Easy Step to Pursuing an Alternative to Courier

  1. Contact MTS Software Solutions.

I know what you’re thinking, “What?!? Did he really just recommend his own company as the one and only take-away from this post??? That’s a cheapshot!”

Allow me to explain. MTS Software Solutions is uniquely qualified to help banks and credit unions streamline document processes that require moving paper around. It would be hard to find another company that has the same breadth and depth of experience in the financial services industry that ALSO happens to offer ALL of the following services:

That’s right. We offer all of this value to our banking customers, and we’ve been doing it for over 30 years.

Contact us to modernize your document processing workflow and do away with those outdated operations of yesteryear.

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