Why are so Few Images Exchanged instead of Paper?

Image exchange is the largest change in banking since the creation of the account number, but getting there is no simple task. First, the infrastructure for the Fed, banks and service bureaus had to be upgraded to handle the large data size of images being transferred. A check image is about 20,000 bytes of data -- or 400 times larger than a typical ACH item.

Second, the image exchange operators had to retool their systems or write new ones and then test them. The Federal Reserve Bank is running months behind on their testing for new banks.

Lastly, banks and service bureaus had to implement and test new item processing software that drove powerful desk-top scanners. All of these events are converging and most experts tell us that we will see critical mass in image exchange during 2007.

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First published on BankersOnline.com 1/2/07