As a collecting bank, you collect a payment from a customer and send it on to remittance to another bank. Although it may seem like a simple process, with the advent of technology and a wider network of banks, it may be helpful to take a hard look at your processes and see where improvement can be made.

Collecting bank consulting may help you keep current with changes in your field and in the end make your operation more efficient. It may seem illogical, but as a collecting bank you must be able to cooperate with competing banks to get transactions through in a timely manner. Working together is key.

Consider the following advantages to hiring on a consulting firm:

1. Employing a collecting bank consulting firm can help you keep on top of changes in legislation as well as new interpretations of old laws.

2. Since most collecting banks utilize check imaging, the issue of image adoption and how to share those images with the remittance bank has come to the forefront. A consultant can help you address this issue.

3. A consulting firm may even be able to refer you to a collecting bank expert when combating litigation.

Action Steps
The best contacts and resources to help you get it done

Get the collecting bank information you need when it comes to following the law

As a collecting bank, you want to have a clear understanding of your responsibilities under the law. Search applicable state and federal laws, even the Uniform Commercial Code, to make sure all your bases are covered.

I recommend: Browse an excerpt of the Uniform Commercial Code supplied by Onecle that explains the legal duties of a collecting bank. The Uniform Law Commission explains the Uniform Commercial Code more in detail and relates potential issues that collecting banks face.

Find a consultant for collecting bank operations

A consultant can help you in a number of ways, from improving communications, business policies and procedures to implementing new technological advances. The ultimate goal? Keep your collecting bank a competitive financial institution.

I recommend: Computer Sciences Corporation offers strategic consulting for banks. Risk assessment and improving business processes are just part of the services offered by Catalyst Consulting Group.

Enlist the support of a collecting bank expert

More complex banking transactions has lead to higher probability of litigation. And if you find your institution in that unfortunate situation, you'll want to make sure you have the forensic banking experts on your side.

I recommend: Forensic and expert witnesses can be hired via The Norton Group. Litigation support in the areas of commercial and real estate loans, business and consumer services, regulatory compliance and others can be obtained from Bank Experts Group.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When selecting and working with a collecting bank consulting firm, make sure your expectations and goals are clear before signing a contract. Have a clear view of how the firm will work to meet your needs and make sure you are comfortable with all of the members of the consultant team you'll be working with.