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Case Study: The Bankers Bank

The Bankers Bank of Oklahoma Selected ClearNetwork to Provide Scalable and Flexible Image Cash Letter Service

The Bankers Bank exists for one reason: to provide the highest quality of correspondent services to community banks. The unique ownership of 99 community banks with no majority shareholders gives The Bankers Bank the ability to offer a full range of correspondent bank and cash management services at a reasonable cost.

The Bankers Bank was chartered in August 1985 and opened for business on May 28, 1986 and focuses on delivering superior client experiences to their member banks and the other correspondent banks they serve.

Background

The Bankers Bank was providing image cash letter services to their correspondent banks, however their existing software solution was unable to keep up with the increasing volume of checks as new correspondent banks were added. The Bankers Bank has a talented information technology team and a wealth of experience in providing correspondent check clearing services which afforded them the ability to pursue either of two options: build their own solution or select a technology partner.

The Decision Process

Mark Keeling, the Chief Operating Officer for the bank, and Malinda Rickel, Vice President of Operations, explored various off-the-shelf solution providers and also evaluated the time and cost to build their own internally developed solution.  Their key decision criteria included:

  • Ability to scale to meet the increasing demands as more correspondent banks were added to the network
  • Flexibility in configuration so that banks could be added without technical support or long testing delays
  • Timeliness in processing since most image cash letter files come in late in the day, leaving a very small window of time to make upstream clearing deadlines
  • Reliability of the vendor partner to deliver what is promised, when it is promised
  • Simple pricing that allows The Bankers Bank to offer a competitively priced service

The key to the decision process was in the Test Drive of Clearingworks ClearNetwork App. The Bankers Bank arrived on site at the US Dataworks office with two large check volume days ready to process.  Using the ClearNetwork Test Drive system, The Bankers Bank  simulted each day by fully processing the work, routing to each clearing destination and balancing to the penny. The first day of production simulation took four hours to complete since it was the first run and there were some minor configuration changes that needed to be made in order to balance.    The second day of production simulation contained a similar volume of checks, but was completed, balanced and verified in two hours.  This represented a 75% reduction in processing time when compared with their current system.

Ongoing Partner Relationship 

The Bankers Bank continues to appreciate the partner approach of US Dataworks. The Bankers Bank has expanded the service to other Bankers' Banks desiring to efficiently clear image cash letters for their correspondent banks.  In addition, US Dataworks continues to improve and enhance the feature set of ClearNetworks.  The goal of these enhancements is to improve the user-experience, make it easier to  brand and  to simplify the handling of special requests from community banks.  The Bankers Bank also uses ClearView for viewing and creating pdf documents of image return files.