Credit Union Reduces Payment Exceptions by 90% with Electronic Lockbox
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Automating Account Number Updates to Reduce Manual Loan Payment Processing
When a large Texas credit union updated its account numbers, an unexpected operational challenge emerged: members continued using their old account numbers when making loan payments.
The outdated information created recurring payment exceptions that delayed loan payment recognition and required hours of manual correction and keying each day.
Within three months of implementing CheckAlt’s Electronic Lockbox, the credit union reduced payment exceptions by 90% and saved hours each day in manual keying.
challenge
Account Number Changes Create Manual Work
Changing account numbers created an ongoing challenge for the credit union because many members continued submitting loan payments using their previous account information. Each time this happened, employees had to identify the correct account, update the information, and manually enter the payment into the credit union’s system. The volume of these exceptions meant staff were spending hours each day correcting payments.
The process created several operational challenges:
Hours of manual payment correction and keying each day
Now, when a payment arrives with an outdated loan number, the operations team can review the exception and identify the correct information. Once that takes place, the team can select “Remember Me” to retain the correction so that the credit union doesn’t have to start from scratch the next time the same payment instructions appear. As a result, future payments containing that known information can be recognized and corrected automatically.
Instead of repeatedly correcting the same account information, the credit union can automate more of the process and reduce the number of payments requiring staff intervention.
results
Fewer Exceptions and Hours Saved Each Day
Within the first three months, the credit union saw a significant improvement in its loan payment workflow:
90% reduction in exceptions
50% reduction in invoice returns through automated matching of old and new account numbers
Hours saved each dayby reducing manual payment keying
Lower manual labor and processing costs
Faster recognition and funding of loan payments
Improved member experience through more efficient payment processing
By automating a repetitive exception-handling process, the credit union reduced the operational burden on employees while helping payments move through the system more efficiently.
“CheckAlt saved the day! By using Electronic Lockbox to match new account numbers to old, we cut our invoice returns in half, saving us hours in manually keying every day. Thank you, CheckAlt!”
— Texas Credit Union
Key Takeaways for Credit Unions
Automate repetitive exceptions: When the same payment exceptions occur repeatedly, automation can reduce the amount of staff intervention required to resolve them.
Reduce the cost of manual processing: Eliminating hours of daily keying allows employees to spend more time on higher-value work.
Improve payment recognition: Automatically matching outdated account information to current accounts helps payments move through the process more efficiently.
Create a better member experience: Reducing payment exceptions and processing delays can make loan payment processing easier for both members and credit union staff.
For this Texas credit union, Electronic Lockbox turned a recurring operational challenge into an automated workflow. By recognizing outdated account information and applying the correct information to future payments, the credit union reduced exceptions by 90% while saving its team hours of manual work each day.
Ready to Reduce Manual Payment Exceptions?
Learn more about CheckAlt’s Electronic Lockbox and how it can help your financial institution reduce recurring payment exceptions, limit manual intervention, and improve the efficiency of online banking bill pay processing.
