System and method for back office processing of banking transactions using electronic files

• US 20060080255A1
• Filed: 11/18/2005
• Published: 04/13/2006
• Est. Priority Date: 02/09/1999
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: The Chase Manhattan Bank (JP Morgan Chase & Co)
• Inventors: Anderson, George, Riehl, Louis
• Granted Patent: US 8,370,232 B2
• Time in Patent Office: Days
• US Class Current: 705/45
• CPC Class Codes: G06K 5/00 Methods or arrangements for verifying the correctness of markings on a record carrier; Column detection devices
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 19/202 Depositing operations within ATMs depositing in general G07D11/00
• CPC Class Codes: G16B 25/00 ICT specially adapted for hybridisation; ICT specially adapted for gene or protein expression

Abstract

As banking transactions are processed by a bank teller, all of the relevant information with respect to the transaction (e.g., dollar amount) is captured in an electronic file. Each of the electronic files from the various branches of the bank are forwarded to a central back office processing center where the electronic files are combined into a single Transaction Repository. At the end of the branch day, all of the paper associated with the transactions is forwarded from the branches to the back office processing center. The paper transactions are imaged in the conventional manner and the Magnetic Ink Character Recognition (MICR) data is read from the paper. The present invention then automatically correlates the images and MICR data captured from the paper with the complete transaction record contained in the Transaction Repository. Most of the conventional back office processing can now be performed without the need to perform character recognition and without the need for excess human intervention.

Claims

1-48. -48. (canceled)

49. A method of processing banking transactions comprising the steps of:

(a) electronically capturing first transaction data reflecting banking transactions conducted at a point of contact;

(b) storing the first transaction data in a transaction file;

(c) reading the first transaction data from the transaction file;

(d) forwarding data associated with the banking transactions conducted at the point of contact to a back office location;

(e) generating second transaction data reflecting information associated with the data;

(f) linking the first and second transaction data with respect to a common financial transaction; and

(g) processing the first and second transaction data to complete the banking transactions.

50. The method according to claim 49, wherein the point of contact comprises a bank branch location, the method further comprising the step of transmitting the transaction file to a different location.

51. The method according to claim 49, wherein there are plurality of bank branch locations, the method further comprising the step of:

conducting steps (a) and (b) at each of the bank branch locations, wherein there is a separate transaction file for each bank branch location.

52. The method according to claim 51, further comprising the step of consolidating the transaction data from the transaction files from each of the bank branch locations into a consolidated transaction file, wherein the reading of step (c) is performed on the consolidated transaction file.

53. The method according to claim 52, wherein the consolidation step occurs several limes during a business day.

54. The method according to claim 53, further comprising the step of electronically transmitting the transaction files from each of the bank branch locations to a central location, wherein the step of consolidation occurs at the central location.

55. The method according to claim 54 wherein steps (c) and (g) occur at the central location.

56. The method according to claim 54 further comprising the step of electronically transmitting the consolidated file from the central location to a different location, wherein steps (c) and (g) occur at the different location.

57. The method according to claim 56 wherein the central location is a retail bank central location and wherein the different location is a back office processing location.

58. The method according to claim 52, wherein the consolidating step further comprises the step of consolidating less than all of the transaction data from each of the transaction files into the consolidated file.

59. The method according to claim 49 wherein the transaction data in the transaction file reflects less than all of the banking transactions conducted at the point of contact.

60. The method as set forth in claim 49, further comprising the step of:

updating the second transaction data with at least a portion of the first transaction data.

61. The method as set forth in claim 60 wherein the portion of the first transaction data is a dollar amount associated with the financial transaction.

62. The method as set forth in claim 49 wherein the step of generating the second transaction data comprises the step of imaging at least one document containing the data.

63. The method as set forth in claim 49, wherein the step of generating the second transaction data comprises the step of reading Magnetic Ink Character Recognition (MICR) data.

64. The method as set forth in claim 49, further comprising the step of inserting a type identifier into the first transaction data, the type identifier indicating a type of transaction contained in the first transaction data.

65. The method as set forth in claim 49, further comprising the step of maintaining, at a back office location, a back office aggregate dollar value of the financial transactions contained in the first transaction data.

66. The method as set forth in claim 65, further comprising the steps of:

generating an aggregate dollar value of financial transactions conducted at the point of contact;

forwarding the aggregate dollar value to the back office location; and

comparing the aggregate dollar value with the back office aggregate dollar value.

67. The method as set forth in claim 49, wherein the step of electronically capturing the first transaction data further comprises the step of reading Magnetic Ink Character Recognition (MICR) data associated with the data.

68. The method as set forth in claim 49, wherein the step of electronically capturing the first transaction data further comprises the step of entering the amount of a transaction into an electronic file.

69. The method as set forth in claim 49, wherein there are a plurality of points of contact, the step of electronically capturing the first transaction data further comprises the step of capturing the first transaction data with respect to transactions conducted by at plurality of points of contact.

70. The method as set forth in claim 49, wherein the processing of step (d) includes account reconciliation processing.

71. The method as set forth in claim 49, wherein the processing of step (g) includes posting of the financial transactions.

72. The method as set forth in claim 49, wherein the processing of step (g) includes proof of deposit processing.

73. A method for processing banking transactions comprising the steps of:

electronically capturing first transaction data reflecting transactions processed at a point of contact;

storing the first transaction data in an electronic transaction file;

transmitting the electronic transaction file to a back office processing location;

forwarding data associated with the transactions conducted at the point of contact to the back office;

reading the first transaction data from the electronic transaction file;

generating second transaction data reflecting information associated with the data;

linking the first and second transaction data with respect to a common transaction; and

performing financial processing using the first and second transaction data.

74. The method as set forth in claim 73, further comprising the step of:

updating the second transaction data with at least a portion of the first transaction data.

75. The method as set forth in claim 74, wherein the portion of the first transaction data is a dollar amount associated with the transaction.

76. The method as set forth in claim 73, wherein the step of generating the second transaction data comprises the step of imaging at least one document containing the data.

77. The method as set forth in claim 73, wherein the step of generating the second transaction data comprises the step of reading Magnetic Ink Character Recognition data associated with the data.

78. The method as set forth in claim 73, further comprising the step of inserting a type identifier into the first transaction data, the type identifier indicating a type of transaction contained in the first transaction data.

79. The method as set forth in claim 73, further comprising the step of maintaining, at the back office, a back office aggregate dollar value of financial transactions contained in the transaction data.

80. The method as set forth in claim 79, further comprising the steps of:

generating an aggregate dollar value of financial transactions conducted at the point of contact;

forwarding the aggregate dollar value to the back office; and

comparing the aggregate dollar value with the back office aggregate dollar value.

81. The method as set forth in claim 73, wherein the step of electronically capturing the first transaction data further comprises the step of reading Magnetic Ink Character Recognition data associated with the data.

82. The method as set forth in claim 73, wherein the step of electronically capturing the first transaction data further comprises the step of entering the amount of a transaction into an electronic file.

83. The method as set forth in claim 73, wherein there are a plurality of points of contact, the step of electronically capturing the first transaction data further comprises the step of capturing the first transaction data with respect to transactions conducted at the plurality of points of contact.

84. A system for processing banking transactions conducted at a point of contact, the system comprising:

a workstation, the workstation electronically capturing first transaction data reflecting transactions processed at a point of contact;

a memory coupled to the workstation, the memory storing the first transaction data in an electronic transaction file; and

a remote processing facility coupled to the memory, the remote processing facility;

receiving the paper documents,

generating second transaction data reflecting information contained on the paper documents,

reading the first transaction data from the electronic transaction file,

linking the first and second transaction data with respect to a common financial transaction, and

performing financial processing using the first and second transaction data.

85. The system according to claim 84, further comprising a plurality of workstations located in at least one bank branch location.

86. The system according to claim 85, wherein the plurality of workstations are located at a plurality of bank branch locations, the system further comprising:

a plurality of memories, at least one memory coupled to the workstations located at a bank branch location, the remote processing facility being coupled to each of the memories.

87. The system according to claim 86, wherein the remote processing facility is coupled to the memories through a telecommunications line.

88. The system according to claim 86, wherein the remote processing facility is coupled to the memories through a common memory.

89. The system as set forth in claim 84, wherein the remote processing facility includes a system for imaging the paper documents.

90. The system as set forth in claim 89, wherein the remote processing facility includes a Magnetic Ink Character Recognition (MICR) reader.

91. The system as set forth in claim 84, wherein the workstation includes a Magnetic Ink Character Recognition (MICR) reader.