Cheque Image Processing

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Cheque Image Processing

• Technology Outsourcing Opportunity

2
VSoft Corporation Overview
Incorporated in 1996
We are a financial marketplace solution provider
specializing in information systems. Our
strength is developing, implementing, and
supporting state of the art software solutions
for the financial services industry.

• Products
• End-to-end Cheque Truncation Solutions
• Core Banking Software
• Document Imaging
• Financial Inclusion Solution

Offices Atlanta, USA Hyderabad, India Manilla,
Philippines
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Customers
Approximate volumes per day
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What are banks doing in India?

• Business plans
• Increasing Geographic presence
• Increasing Service Window times
• Getting ready for Cheque truncation by region
• Financial plans
• Reduce operating expense
• Increase Revenue
• Improve Customer Service
• Increase Cross Selling touch points

Slide 4
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Cheque is here to stay

• Reduction in Volume
• EFT
• RTGS
• Debit Card
• Credit Card
• Increase Cost of Processing

Slide 5
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VSoft Solution

• Totally Outsourced Model
• Hardware
• Infrastructure
• Software
• Resources
• What is different?
• Technology
• Costs
• Total Responsibility

Slide 6
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Cheque Imaging Workflow
Branch / Hub
Image Capture
Batch Logging

• Image Capture
• Log Batches from Branch
• Capture Batch Ticket
• Capture MICR Line
• Capture Front and Back Images as per RBI
  guidelines
• Endorsement Images as per RBI guidelines
• Unique Sequence Number By Branch / Scanner
• Flow mode Capture

Slide 7
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Cheque Imaging Workflow
Branch / Hub
Image Capture
Batch Logging
Image Quality Management

• Image Quality
• Global Image Quality
• Partial Image
• Excessive Image Skew
• Piggy Backed Image
• Image Too Light or Too Dark
• Image Contains Streaks and/or Bands
• Below Minimum Image Size
• Exceeds Maximum Image Size

Slide 8
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Cheque Imaging Workflow
Branch / Hub
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan

• Image Review
• Image Review displays images of all items that
  have failed Image Quality check
• Teller reviews images and optionally Re-Scans bad
  images
• Image Re-Scan
• Selected Items are Re-Scanned for a better Image
• System validates MICR to make sure the image
  replaces the right item

Piggyback
Partial Document
Too Light
Slide 9
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Cheque Imaging Workflow
Branch / Hub
Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports

• Local Archive
• 5 day Storage
• Backup in case of Lost Cheques
• Same Day Availability of Images

Slide 10
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Cheque Imaging Workflow
Branch / Hub
Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Secure File Transfer Protocol
Image Data

• Secured Transmission
• Status based Transmission
• Files transmitted to central site in a variation
  of the X9.37 format
• Transmission uses
• Secured FTP Client
• 128-bit Encrypted secured connection
• Connection via Secure Sockets Layer SSL

Slide 11
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Cheque Imaging Workflow
Branch / Hub

• MICR line of Rejects only
• If the cheque was run upside down, IRIS rotates
  the cheque
• If the cheque was run front side backwards, IRIS
  flips the cheque
• Updates the Database with the corrected MICR
• Writes audit trail
• Saves the New Image Orientation.

Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Secure File Transfer Protocol
Image Data
Operations Center
DIGITAL DASHBOARD
IRIS
Slide 12
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Cheque Imaging Workflow
Branch / Hub

• Image Character Recognition
• Courtesy Amount Read (CAR)
• Legal Amount Read (LAR)
• Payee Date
• Payee Name
• Depositor Account Number

Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Rear of Cheque
Secure File Transfer Protocol
Image Data
Operations Center
DIGITAL DASHBOARD
IRIS
CAR/LAR/ Forms
Slide 13
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Cheque Imaging Workflow
Branch / Hub

• High Speed Amount Entry
• Key amounts upwards of 2500 iph
• Only 30 is manual
• Image Reject Repair
• Fix rejects as per sort pattern
• Only 20 is Manual

• Balancing
• Next Out Of Balance transaction
• Image Correction
• Payee Name
• Fix only unreadables
• Only 10 is Manual

Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Secure File Transfer Protocol
Image Data
Operations Center
DIGITAL DASHBOARD
IRIS
CAR/LAR/ Forms
Reconcilement Balancing
Reject Repair
Amount Entry
Payee Name
Slide 14
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Cheque Imaging Workflow
Branch / Hub

• Real-Time Status of all Batches
• Various Institution / Branch
• information
• Transmissions statuses

• Online On Demand
• Operator productivity
• Operator Audits
• Scanner Statistics
• Recognition Rates

Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Secure File Transfer Protocol
Image Data
Operations Center
DIGITAL DASHBOARD
IRIS
CAR/LAR/ Forms
Reconcilement Balancing
Reject Repair
Amount Entry
Payee Name
Slide 15
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Cheque Imaging Workflow
Branch / Hub

• Notification
• Central Site System sends an e-Receipt to the
  designated Branch email address
• The e-Receipt details the total Deposit value
  and number of items
• Sends an End-Of-Day total deposit summary
  receipt to the branch supervisor

Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Secure File Transfer Protocol
Image Data
Operations Center
DIGITAL DASHBOARD
IRIS
CAR/LAR/ Forms
Reconcilement Balancing
Reject Repair
Amount Entry
Payee Name
Slide 16
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Cheque Imaging Workflow
Branch / Hub
Archive
Image Capture
Batch Logging
Image Quality Management
Image (Re) scan
Reports
Secure File Transfer Protocol
Image Data
Operations Center
DIGITAL DASHBOARD
IRIS
CAR/LAR/ Forms
Reconcilement Balancing
Reject Repair
Amount Entry
Payee Name
Exchange Monitor
Slide 17
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Technology Outsourcing Opportunity Summary

• Environment
• Completely Automated
• Less Expensive Hardware
• Distributed Infrastructure
• Technology
• Image Based
• Cheque Truncation Ready
• Future Products
• Nationwide Archive
• Merchant Capture
• Benefits
• Lower Cost of Processing
• Faster Processing
• Greater Accuracy
• Higher Accountability

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• Thank You!