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| Diebold Eras is a leading provider of image-based item processing solutions to community banks in Florida. Specifically, Diebold Eras provides outsourced image-based check, remittance lockbox, and account processing services, as well as sells its processing software (and related professional services) on a stand-alone basis to customers that prefer an in-house operated solution. The Company’s solutions are based on its open-architected, browser-based software platform, which provides clients access to relevant data on a 24x7x365 basis, and integrates with client banks’ core data processing systems (such as loans, deposits, accounting, customer management, teller, etc.) |
| Most of our products provide a positive impact to the bottom line and some of the benefits can be quantified in hard dollars. It is common for Diebold Eras to perform an analysis of a customer’s existing processes and infrastructure and then make recommendation for implementing new technology. |
A part of that process is to include a cost benefit analysis. For example: Bank A has just initiated check imaging and is interested in providing image statements to their customers. In very simplistic form, Bank A has 5722 DDA accounts and currently are mailing statements and paper checks to all customers. Typical savings in this process equates to $1/mo for all customers who elect to receive their statements electronically. A common scenario would be that about 40% of the accounts will choose electronic delivery once it is available. In addition, this percentage tends to grow as others realize the benefits, but at a minimum:
5722 X 40% = 2288.80
2288.80 X $1 X 12 = $27,465.60 annual savings |
| This savings can be attributed to the fact that Bank A no longer has to: |
- Print statements
- Sort checks
- Match statements to check bundles
- Stuff both in envelopes
- Seal envelopes
- Apply postage
- Deliver statements to post office
- Customers benefit by:
- Being notified when statements are ready
- Are able to download their statements w/check images in PDF format
- No longer having to store checks/statements in hard copy
- Are able to do their own quick research in electronic form on their local PC.
- Statements are available on the first of the month rather than 2nd or 3rd week
- Business customers are able to begin working their books the first week of the month
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For those interested in examining cost effectiveness of installing iLockbox we have developed a complex spreadsheet that illustrates cost of operation versus new revenue – allowing multiple “what-if” manipulations.
When implementing other applications (such as remote branch capture to a central database), the formulas become much more complex but there are tools to determine the financial impact. Some applications; such as iKiteWatch, have HUGE potential savings that are difficult to quantify – (see Case Study – Transatlantic Bank). We are happy to assist with the cost justification as a part of our service. |
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