Aite Group releases a report today predicting that check electronification will increase to 75% of checks issued by 2012. The report forecasts that the over all number of checks written will steadily decrease, but that an increasing percentage of checks written will clear electronically. These findings underscore the industry emphasis on turning paper checks into electronic transactions rather than eliminating check transactions in the first place.
Nancy Atkinson, senior analyst at Aite Group and author of the report, observes
The nature of check processing is changing rapidly, and though a number of electronic instruments will dramatically reduce the number of paper checks processed for clearing and settlement, billions of paper checks will still be written each year.
Financial institutions need to seriously consider their time of entry, as early adopters tend to pay additional costs for technological and operational challenges. However, there is no doubt that all financial institutions will eventually need to migrate to ACH conversion or check truncation, though most likely both.
The Magical Disappearing Check or the "Prestige"
Aite Group
Boston, MA, October 8, 2007
During her time at Glenbrook, Erin focused on client engagements in business payments, cross-border transactions, bill payment, and the intersection of corporate finance, banking, and ERP/accounting. She has nearly twenty years of experience leading increasingly complex payment initiatives for corporate clients and advising financial institutions and payment technologists on the development of their payment capabilities.
Erin is also the founder of Forte Financial, a consulting firm focused on corporate finance efficiency, technology, and process improvement. She is a past president of the Financial Women’s Association of San Francisco and also a two-term past president of the San Francisco Treasury Management Association. Erin is no longer with Glenbrook, but contributed greatly during her time at the firm.