check truncation system - newgen software website files/brochures... · image-based check clearing...

CHECK

TRUNCATION

SYSTEM Image-Based Check Clearing System

SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT

SO

LU

TIO

NS

FO

R B

US

INE

SS

PR

OC

ES

S &

CO

NT

EN

T M

AN

AG

EM

EN

TIntroduction

Image-based Check Clearing-An Overview

Payments and settlement process is critical in ensuring the efficiency of the financial infrastructure. This helps in promoting financial sector development, improving the effectiveness of the monetary policy, and reducing the country's risk profile.

Paper checks are undergoing a sweeping change in the way they are processed, cleared, and settled. Check Imaging and truncation (the replacement of the paper check by a check image and an electronic data file) is bringing about this change. The most critical of these changes is point-of-entry capture, that is, the capture of the check image as far upstream in the process as possible. Check processing affects all customers of the bank, and is causing a complete revamp of many banking operations.

Image-based Check Clearing System or Check Truncation System (CTS) is a project for faster clearing of checks undertaken by Central banks of many countries such as India’s Reserve Bank of India (RBI), UAE’s Central bank, Saudi Arabia’s Saudi Arabia Monitoring Agency (SAMA), etc

CTS promises to bring multiple benefits to customers by substantially reducingthe time taken to clear the checks. For banks, CTS enables better customer

services and increase in operational efficiency by cutting down on overheads in

physical clearing. In addition, CTS also offers better reconciliation and fraud

prevention.

CTS uses check image, instead of the physical check itself, for clearing of the

check. The check image is truncated at the presenting bank. Subsequently, the

check image moves through various steps in the check-clearing cycle, and

transactions are settled on the basis of images and electronic data.

‘Following software-centric approach as opposed to hardware-

centric approach, Newgen CTS is build around state-of-the-art

Imaging, Document Management and Workflow technologies,

which integrate seamlessly in an enterprise-wide framework.’

Balancing and Verifying

Verify Reject Checks

?

?

?

?

?

?

?

?

?

?

?

Various core banking systems (including FLEXCUBE and Finacle) /third party

applications including middleware and message queues

Existing clearing systems of banks

Automatic signature verification systems

Based on Open Standards

Industry accepted security standards

Monitoring and tracking

J2EE-based open and platform-independent architecture

DOD & MoReq standards for records management

ANSI standards, X9.37 and X9.90, for exchange of images and data and

creation of image-replacement documents

World-class encryption and cryptographic standards ensuring secure and

reliable storage and transmission

Support for smart cards, HSM cards

Support for digital signatures for non-repudiation and legal validity

Real time process monitoring through a dashboard for removing bottle-

necks

Comprehensive Reporting and Audit Trails for “Who-did-what-when”

The solution suite has been developed on the strong backbone of Newgen

Imaging, Document Management and Workflow platform, comprising:

A versatile rule based workflow engineA strong and robust document management system A batch mode scanning application with MICR data display and

image quality analysisImage quality analysis and verification

Newgen’s CTS manages the processes of check or other instruments’ clearing

cycle by using Imaging and Workflow technologies that includes:

? OmniFlow: ? OmniDocs:? Batch Scan:

? Imaging Libraries:

Solution Highlights

Rich Implementation Experience:

?Integrated outward clearing (scanning and processing at presenting bank), inward clearing (processing central bank's files at drawee bank), outward return and inward returns (handling processing of returned/bounced instruments)

?Web based access at client locations, no installation on client machines for

patches or upgrades

?Client-server architecture, supporting multiple deployment models

centralized/decentralized at presenting and drawee banks

?Integrated solution for on-the-move relationship managers via web referral

processing

?Integrated Image Quality Analysis as per Central Bank's guidelines as an

Automated Activity

?Built-in Centralized Archival of Check Images, Corresponding Data & Audit

Trails with configurable search and retrieval options

?Extendable to automate other processes in payments domain PDC

management, ACH, RTGS, Warrants processing, Signature Management

System

?Extendable to Newgen's proprietary ICR/OCR engine for auto-extraction,

matching of amount in figures and in words, and Automatic Signature

Verification

?Enterprise Level Scalable Product, supports clustering and Disaster Recovery

setups

?Newgen’s CTS is being used successfully across various continents spanning

Indian Sub-continent, Middle East, Africa and SEA regions

?45+ banks acquired in the last 5 years for image based check clearing

applications, including SABB, ADCB, RAK Bank, Mashreq Bank, Standard

Chartered Bank, Ghana Commercial Bank, Imperial Bank Kenya, Kotak

Bank India, HSBC India, East West Bank Philippines, etc as an illustrative list

Newgen Solution Suite for Image-Based Check Clearing

Platform Independent

BPM EngineDMS/RMS Imaging Libraries

Scanners Components IntegrationService

PaniniVision X Series

Digital CheckTS-220 & TS-350

CTSLS-515 & LS-800

UnisysNDP-60

CheckFlow

Check Exchange

Omni Transport

Signature Management System

Scanning System

Web Referrals

CanonCR - 190 & CR-55

Internet Banking/e-mail/SMS Portal

Automatic Signature Verification System

Check Deposit Kiosk

Cash ManagementSystem

CBS/TBA/PBA

Fraud ManagementSystem

Warrants &Drafts Processing

InwardClearing

PDCsProcessing

OutwardClearing

CashManagement

Process

Other Value-adds

The solution is easily extendable to related needs like:

/ Post Dated Check processing

/ Web-based referral system

/ Interest & Dividend warrants processing

/ Signature Maintenance systems

/ Cash Management

/ Credit Card Processes/ Customer care (along with interface to call centers)/ Clearing Processes

8E - Check8Interest & Dividend Warrants8Demand Drafts processing8Cash Management

/ Centralization of Retails Assets, Retail Liability / Centralizations of Loans Process

6Personal Loans6SME Credits6Mortgage loans6Corporate credits6Microfinance

Banking & BPM - where it can be used

?Localization and support of multiple languages including Arabic

?Inbuilt service monitoring and extensive logging for faster issue resolution

?Faster deployment and rollout at branches

?Standardized process with regular upgrades to avoid potential errors

?Consistent environments for UAT and Production for successful roll outs

?

?

?

?

Integration Capability with:

ATMs

Check Deposit kiosks to provide multi-point capture capability

Seamless integration through APIs and/or hand-off file generation

Hardware and Platform Independent, support for multiple Check Scanners, Application and

Database servers

Monitoring and Tracking

Components of the Solution Suite Newgen Check Truncation

System (CTS) is an end-to-

end solution for image-based,

Inward/Outward electronic

check clearing, built on top o f

B u s i n e s s P r o c e s s

Management (BPM) platform.

Leveraging the BPM platform,

banks can easi ly make

changes to the existing

process flow and also process

instruments other than

checks such as Printed Drafts

and Interest & Dividend

Warrants.

CTS efficiently manages and

speeds up the entire clearing

and settlement cycle by using

rich image-capture capability,

fast and secure check image

transfer, scalable archival and

r e t r i e v a l s y s t e m , a n d

comprehens i ve record

management.

Tai lored CTS solut ions

prov ide banks greater

f lex ib i l i ty, unpara l le led

productivity, shortened.

cycles, drastic reduction in

processing costs, and near-

elimination of check fraud.

CTS easily integrates with

existing core banking systems

and a wide make of hardware,

and facil itates seamless

exchange of information.

CheckFlowFor handling Outward/Inward clearing & return processing at Head Office/branches

ArchitectureWeb based client –server based multiuser system with rights-based access management, built on Newgen's BPM platform

Web Referral SystemTo enable on the move branch relationship managers to access and process the images and associated data of referred instruments over web

ArchitectureWeb-based client-server based multi-user system. Comes with out-of-box

integration with CheckFlow

CheckExchangeRule-based sorting and settlement switch for Clearing Houses/Central Banks

ArchitectureClient-Server based multi-user system with rights-based access management, built

on Newgen’s BPM Platform

OmniTransportUpload/Download Interfaces for the Branches and Head Office. This is required when the branches want to communicate with the Head Office on a secure network.

ArchitectureCommunication done on a secure network over SSL with industry standard Encryption

Signature Management SystemTo capture, store and retrieve the signature and mandate information of different accounts

ArchitectureClient-Server based multi-user system, with rights-based access management and

rule definition

OmniDocs & Record Management Sytem (RMS)

ArchitectureClient-Server based multi-user system. Comes with out-of-box integration with

CheckFlow and CheckExchange

Check archival and retrieval system for storage of images and data at a central location, with capability to deploy remote image servers at multiple locations for faster image access.

RMS is available as an add-on component for managing complete lifecycle of

physical and electronic documents as per bank’s policies

Newgen's Other Solutions for Banks and Financial Institutions

TMDraftFlow : Image-Based Draft Processing Solution

TMOmniReports : Report Management System

WorkFlow Management Solution

Newgen ProductsTMOmniFlow : TMOmniDocs : TMOmniScan :

Imaging libraries:

Newgen DraftFlow provides a versatile and scalable solution for faster and efficient clearing of drafts. It is an end-to-end solution for validating against core databases and raising exceptions to efficiently process the drafts in the stipulated time. It offers the following features and benefits:! Complete extraction of draft data, including cross-checking the information! Cross-checking with back-end draft system for duplicate and expired drafts! Integration with authorized signatures! Streamlines operations to reduce manual overheads! Reduces frauds

OmniReports provides reports archival, distribution and publishing for large distributed banks. It compresses electronic reports – generated in different systems such as Core Banking, Cash Management, Loans, Trade, ATM, etc. – to as much as 1/13th of their original size and stores them in searchable form. OmniReports, integrated with core banking system, offers following benefits:! Reduces load on the Core Banking system! Slashes printing costs as reports can be instantly searched and viewed online! Allows access to previous reports even after transactions are removed! Publishes account statements on the Web for self-service customersBanks that have Total Brach Automation (TBA) and are shifting to Core Banking can import and store all previous reports, including audit trails, from TBA system at branches into OmniReports

Newgen has implemented image-based workflow solutions for many banks. These solutions include Loan Processing Systems, Credit Appraisal Systems, and LC and Trade Bills Processing Systems Documents are scanned at branches and introduced into the workflow. The electronic documents moves through various worksteps, where users can take decision, mark exceptions, and approve the documents. The workflow enables collaborative working among branches and zonal and central offices. Using these solutions, banks obtain following benefits:! Centralize processing! Reduce time of transaction! Optimize employee productivity

A versatile rule-based workflow systemAdvance document management solutionPowerful data capture and indexing tool

MICR extraction, endorsements, and watermarking

Why Newgen

Core Competence in ImagingNewgen has more than fifteen years of experience in Imaging. Newgen has developed a rich set of imaging libraries for image transformation, compression andenhancement.

IPR OwnershipSince the IPR ownership of the complete solution offered (up to the engine level) is with Newgen, it offers the banks easy maintenance and customizations. The future developments on the solution would be easy to integrate and manage. The India Advantage With over 600 Software Engineers based out of its R&D and Product Development centers in New Delhi and Chennai, Newgen is uniquely positioned to cater to even the most complex and focused needs of the banks in minimal time frames and at low support costs.

Rich ExperienceNewgen is the leading solution provider of Imaging-based Document Management and BPM solutions for a wide range of national and international clients across various industries.

Representative list of customersHSBC Bank, Deutsche Bank, Hua Nan Bank, ABN Amro Bank, ICICI Bank, IDBI Bank, State Bank Of India, ING Vysya Bank, CitiFinancial, RAK Bank, Bank of Tanzania, Max New York Life, Bajaj Allianz., Unilever, Philips, GE Countrywide, EXL, Satyam Nipuna, iGATE, Core 3, Ranbaxy, GSL, Kenyan Airways and SEC Phillipines.

www.newgensoft.com

© Copyright 2010-2011 Newgen Software Technologies Limited. All rights reserved.

Newgen Software Technologies Limited is the market leader in

Business Process Management (BPM) and Enterprise Content

Management (ECM), with a global footprint of over 800 installations

in about 40 countries. More than 100 of these implementations are

large, mission-critical solutions deployed at the world's leading

BFSI, BPO and Fortune Global 500 companies.

Newgen Software has been positioned in the Magic Quadrant for

Enterprise Content Management (ECM), 2009. The company has

been recognized by distinguished analyst firms like Frost and

Sullivan as a 'Hot Company to Watch for' in their global ECM Market

report, 2009 and by IDC in its exclusive report “Newgen Software:

Global Leader in Business Process Management and Document

Management Solutions”. Newgen has won prestigious awards such

as CNBC-TV18 - “Emerging India Award 2008”.

With HSBC and SAP investment, Newgen is one of the rare product

companies to have the backing of both leading financial and

technology companies of the world. Newgen’s Quality Systems are

certified against ISO 9001:2008 and Information Security Standard,

ISO 27001:2005. Newgen has been assessed at CMMI Level3.

New Delhi:

Mumbai:

Bangalore:

Chennai:

Hyderabad:

Kolkata:

E-44/13, Okhla Industrial Area Phase II

New Delhi - 110 020

Tel: +91-11-4653 3200, 2638 4060, 2638 4146

Telefax: +91-11-2638 3963

Email: [email protected]

B- Pitruchhaya, Paralkar Marg,

Off - Ranade Road, Shivaji Park,

Dadar - West, Mumbai - 400 028

Telefax: +91-22-2444 6588-89


FF-2, Alpine Arch, 10 Langford Road

Bangalore - 560 025

Tel: +91-80-2223 7765, 2227 3614

Telefax: +91-80-2229 1615


Ground Floor, Quanta ZEN

38, Dr. Thomas Road, Off. South Boag Road

T. Nagar, Chennai – 600 017

Tel: +91-44-4356 0890, 91

Fax: +91-44-4356 0892


304/2, 3rd Floor, Block-I, White House

6-3-1192/1/1, Kundan Bagh

Begumpet, Hyderabad - 500 016

Tel: +91-40-4456 5656, 2341 6857

Fax: +91-40-4456 5666


Punarnava Complex , Room No. 505, 5th Floor

13, B.B Ganguly Street, Kolkata-700012

Tel: +91-33-65340498

Telefax: +91-33-40037770

E-mail: [email protected]

Newgen Software Technologies Ltd.

US:

UK:

UAE:

A-6, Satsang Vihar Marg, Qutab Institutional Area,

New Delhi - 110 067 INDIA

Tel: +91-11-4077 0100, 2696 3571, 2696 4733

Fax: +91-11-2685 6936


Newgen Software Inc.

1364 Beverly Road, Suite 300

McLean, VA 22101

Tel: +1-703-439-0703


Newgen Software Technologies Ltd.

68 Lombard Street, London EC3V, 9LJ

Tel: +44-207-868 1736

Mobile: +44-78154 96669


Newgen Software Technologies Ltd

YI 46, PO Box 120586

Sharjah Airport International Free Zone

Sharjah, United Arab Emirates (UAE)
