Answer:
I've worked with several thrifts in recent years who have begun this process. Often, the first step is a "hybrid" POD process whereby some transactions are still done live at the window, and others are batched.
One of the key issues that will drive you to POD is an expected higher volume of business accounts. In order to properly handle large deposits, calculate account analysis, etc, you will want to process those deposits through POD.
One of the arguments for real time is that all systems are current, to the minute, as transactions occur. The real issue here is what the customer sees. Most of today's batch systems can provide similar capabilities in a "memo post" environment.
Commercial banks are not moving to a real time environment. As more thrifts seek to act as commercial banks, I believe more will move away from the real time systems.
EPD Audit and Internal Control issues are much greater with the real time systems as opposed to batch.
In planning your move, it is important to identify and chart the current workflow of all transactions. Then, decisions can be made as to which transactions are the best candidates for POD.
Teller training is especially important, as their daily routines will change significantly.
First published on BankersOnline.com 2/3/03
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