check truncation system

CHECK
TRUNCATION
SYSTEM
Image-Based Check Clearing System
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
Introduction
Payments and settlement process is critical in ensuring the efficiency of the
financial infrastructure. This helps in promoting financial sector development,
improving the effectiveness of the monetary policy, and reducing the country's risk
profile.
Paper checks are undergoing a sweeping change in the way they are processed,
cleared, and settled. Check Imaging and truncation (the replacement of the
paper check by a check image and an electronic data file) is bringing about this
change. The most critical of these changes is point-of-entry capture, that is, the
capture of the check image as far upstream in the process as possible. Check
processing affects all customers of the bank, and is causing a complete revamp
of many banking operations.
Image-based Check Clearing-An Overview
Image-based Check Clearing System or Check Truncation System (CTS) is a
project for faster clearing of checks undertaken by Central banks of many
countries such as India’s Reserve Bank of India (RBI), UAE’s Central bank, Saudi
Arabia’s Saudi Arabia Monitoring Agency (SAMA), etc
Balancing and Verifying
CTS promises to bring multiple benefits to customers by substantially reducing
the time taken to clear the checks. For banks, CTS enables better customer
services and increase in operational efficiency by cutting down on overheads in
physical clearing. In addition, CTS also offers better reconciliation and fraud
prevention.
CTS uses check image, instead of the physical check itself, for clearing of the
check. The check image is truncated at the presenting bank. Subsequently, the
check image moves through various steps in the check-clearing cycle, and
transactions are settled on the basis of images and electronic data.
Verify Reject Checks
‘Following software-centric approach as opposed to hardwarecentric approach, Newgen CTS is build around state-of-the-art
Imaging, Document Management and Workflow technologies,
which integrate seamlessly in an enterprise-wide framework.’
Newgen Solution Suite for Image-Based Check Clearing
Process
The solution suite has been developed on the strong backbone of Newgen
Imaging, Document Management and Workflow platform, comprising:
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OmniFlow: A versatile rule based workflow engine
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OmniDocs: A strong and robust document management system
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Batch Scan: A batch mode scanning application with MICR data display and
image quality analysis
Outward
Clearing
Warrants &
Drafts Processing
Cash
Management
Various core banking systems (including FLEXCUBE and Finacle) /third party
?
applications including middleware and message queues
Existing clearing systems of banks
?
Automatic signature verification systems
?
Inward
Clearing
PDCs
Processing
Based on Open Standards
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Imaging Libraries: Image quality analysis and verification
Solution Highlights
Newgen’s CTS manages the processes of check or other instruments’ clearing
cycle by using Imaging and Workflow technologies that includes:
Scanners
Components
Panini
Rich Implementation Experience:
?
Newgen’s CTS is being used successfully across various continents spanning
Indian Sub-continent, Middle East, Africa and SEA regions
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45+ banks acquired in the last 5 years for image based check clearing
applications, including SABB, ADCB, RAK Bank, Mashreq Bank, Standard
Chartered Bank, Ghana Commercial Bank, Imperial Bank Kenya, Kotak
Bank India, HSBC India, East West Bank Philippines, etc as an illustrative list
Other Value-adds
The solution is easily extendable to related needs like:
/
Post Dated Check processing
/
Web-based referral system
/
Interest & Dividend warrants processing
/
Signature Maintenance systems
/
Cash Management
Canon
CBS/TBA/PBA
CheckFlow
Vision X Series
?
Integrated outward clearing (scanning and processing at presenting bank),
inward clearing (processing central bank's files at drawee bank), outward return
and inward returns (handling processing of returned/bounced instruments)
?
Web based access at client locations, no installation on client machines for
patches or upgrades
?
Client-server architecture, supporting multiple deployment models
centralized/decentralized at presenting and drawee banks
?
Integrated solution for on-the-move relationship managers via web referral
processing
?
Integrated Image Quality Analysis as per Central Bank's guidelines as an
Automated Activity
?
Built-in Centralized Archival of Check Images, Corresponding Data & Audit
Trails with configurable search and retrieval options
?
Extendable to automate other processes in payments domain
PDC
management, ACH, RTGS, Warrants processing, Signature Management
System
?
Extendable to Newgen's proprietary ICR/OCR engine for auto-extraction,
matching of amount in figures and in words, and Automatic Signature
Verification
?
Enterprise Level Scalable Product, supports clustering and Disaster Recovery
setups
Integration
Service
Check Exchange
Automatic Signature
Verification System
Omni Transport
Check Deposit Kiosk
CR - 190 & CR-55
Digital Check
TS-220 & TS-350
Signature Management System
Fraud Management
System
LS-515 & LS-800
Scanning System
Cash Management
System
Unisys
Web Referrals
Internet Banking/
e-mail/SMS Portal
CTS
NDP-60
DMS/RMS
BPM Engine
J2EE-based open and platform-independent architecture
?
DOD & MoReq standards for records management
?
ANSI standards, X9.37 and X9.90, for exchange of images and data and
?
creation of image-replacement documents
Industry accepted security standards
World-class encryption and cryptographic standards ensuring secure and
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reliable storage and transmission
Support for smart cards, HSM cards
?
Support for digital signatures for non-repudiation and legal validity
?
Monitoring and tracking
Real time process monitoring through a dashboard for removing bottle?
necks
Comprehensive Reporting and Audit Trails for “Who-did-what-when”
?
Imaging Libraries
Monitoring and Tracking
Platform Independent
?
Localization and support of multiple languages including Arabic
?
Inbuilt service monitoring and extensive logging for faster issue resolution
?
Faster deployment and rollout at branches
?
Standardized process with regular upgrades to avoid potential errors
?
Consistent environments for UAT and Production for successful roll outs
Integration Capability with:
ATMs
?
Check Deposit kiosks to provide multi-point capture capability
?
Seamless integration through APIs and/or hand-off file generation
?
Hardware and Platform Independent, support for multiple Check Scanners, Application and
?
Database servers
Banking & BPM - where it can be used
/
Centralization of Retails Assets, Retail Liability
/
Centralizations of Loans Process
6
Personal Loans
6
SME Credits
6
Mortgage loans
6
Corporate credits
6
Microfinance
/
Credit Card Processes
/
Customer care (along with interface to call centers)
/
Clearing Processes
8
E - Check
8
Interest & Dividend Warrants
8
Demand Drafts processing
8
Cash Management
Components of the Solution Suite
CheckFlow
For handling Outward/Inward clearing & return processing at Head Office/branches
Architecture
Web based client –server based multiuser system with rights-based access
management, built on Newgen's BPM platform
CheckExchange
Rule-based sorting and settlement switch for Clearing Houses/Central Banks
Architecture
Client-Server based multi-user system with rights-based access management, built
on Newgen’s BPM Platform
OmniTransport
Upload/Download Interfaces for the Branches and Head Office. This is required
when the branches want to communicate with the Head Office on a secure network.
Architecture
Communication done on a secure network over SSL with industry standard
Encryption
OmniDocs & Record Management Sytem (RMS)
Check archival and retrieval system for storage of images and data at a central
location, with capability to deploy remote image servers at multiple locations for
faster image access.
RMS is available as an add-on component for managing complete lifecycle of
physical and electronic documents as per bank’s policies
Architecture
Client-Server based multi-user system. Comes with out-of-box integration with
CheckFlow and CheckExchange
Signature Management System
To capture, store and retrieve the signature and mandate information of
different accounts
Architecture
Client-Server based multi-user system, with rights-based access management and
rule definition
Web Referral System
To enable on the move branch relationship managers to access and process the
images and associated data of referred instruments over web
Architecture
Web-based client-server based multi-user system. Comes with out-of-box
integration with CheckFlow
Newgen Check Truncation
System (CTS) is an end-toend solution for image-based,
Inward/Outward electronic
check clearing, built on top o f
Business Process
Management (BPM) platform.
Leveraging the BPM platform,
banks can easily make
changes to the existing
process flow and also process
instruments other than
checks such as Printed Drafts
and Interest & Dividend
Warrants.
CTS efficiently manages and
speeds up the entire clearing
and settlement cycle by using
rich image-capture capability,
fast and secure check image
transfer, scalable archival and
retrieval system, and
comprehensive record
management.
Tailored CTS solutions
provide banks greater
f l e x i b i l i t y, u n p a r a l l e l e d
productivity, shortened.
cycles, drastic reduction in
processing costs, and nearelimination of check fraud.
CTS easily integrates with
existing core banking systems
and a wide make of hardware,
and facilitates seamless
exchange of information.
Newgen's Other Solutions for Banks and Financial Institutions
Why Newgen
DraftFlowTM: Image-Based Draft Processing Solution
Newgen DraftFlow provides a versatile and scalable solution for faster and efficient clearing of drafts.
It is an end-to-end solution for validating against core databases and raising exceptions to efficiently
process the drafts in the stipulated time. It offers the following features and benefits:
! Complete extraction of draft data, including cross-checking the information
! Cross-checking with back-end draft system for duplicate and expired drafts
! Integration with authorized signatures
! Streamlines operations to reduce manual overheads
! Reduces frauds
Core Competence in Imaging
Newgen has more than fifteen years of
experience in Imaging. Newgen has developed
a rich set of imaging libraries for image
transformation, compression and
enhancement.
OmniReportsTM: Report Management System
OmniReports provides reports archival, distribution and publishing for large distributed banks. It
compresses electronic reports – generated in different systems such as Core Banking, Cash
Management, Loans, Trade, ATM, etc. – to as much as 1/13th of their original size and stores them in
searchable form. OmniReports, integrated with core banking system, offers following benefits:
! Reduces load on the Core Banking system
! Slashes printing costs as reports can be instantly searched and viewed online
! Allows access to previous reports even after transactions are removed
! Publishes account statements on the Web for self-service customers
Banks that have Total Brach Automation (TBA) and are shifting to Core Banking can import and store
all previous reports, including audit trails, from TBA system at branches into OmniReports
WorkFlow Management Solution
Newgen has implemented image-based workflow solutions for many banks. These solutions include
Loan Processing Systems, Credit Appraisal Systems, and LC and Trade Bills Processing Systems
Documents are scanned at branches and introduced into the workflow. The electronic documents
moves through various worksteps, where users can take decision, mark exceptions, and approve the
documents. The workflow enables collaborative working among branches and zonal and central
offices. Using these solutions, banks obtain following benefits:
! Centralize processing
! Reduce time of transaction
! Optimize employee productivity
IPR Ownership
Since the IPR ownership of the complete
solution offered (up to the engine level) is with
Newgen, it offers the banks easy maintenance
and customizations. The future developments
on the solution would be easy to integrate and
manage. The India Advantage With over 600
Software Engineers based out of its R&D and
Product Development centers in New Delhi and
Chennai, Newgen is uniquely positioned to
cater to even the most complex and focused
needs of the banks in minimal time frames and
at low support costs.
Rich Experience
Newgen is the leading solution provider of
Imaging-based Document Management and
BPM solutions for a wide range of national and
international clients across various industries.
Representative list of customers
HSBC Bank, Deutsche Bank, Hua Nan Bank,
ABN Amro Bank, ICICI Bank, IDBI Bank, State
Bank Of India, ING Vysya Bank, CitiFinancial,
RAK Bank, Bank of Tanzania, Max New York
Life, Bajaj Allianz., Unilever, Philips, GE
Countrywide, EXL, Satyam Nipuna, iGATE,
Core 3, Ranbaxy, GSL, Kenyan Airways and
SEC Phillipines.
Newgen Products
OmniFlowTM: A versatile rule-based workflow system
OmniDocsTM: Advance document management solution
OmniScanTM: Powerful data capture and indexing tool
Imaging libraries: MICR extraction, endorsements, and watermarking
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