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

• US 7,062,456 B1
• Filed: 10/07/1999
• Issued: 06/13/2006
• Est. Priority Date: 02/09/1999
• Status: Expired due to Term

• 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
• Primary Examiner(s): MCCLELLAN, JAMES S
• Application Number:
  US09/413,971
• Time in Patent Office: 2,441 Days
• Field of Search: 705/35, 705/36, 705/30, 705/39
• US Class Current: 705/35
• 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. A method of processing banking transactions comprising the steps of:

(a) electronically capturing first transaction data reflecting banking transactions conducted by a bank teller;

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

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

(d) forwarding paper documents associated with the financial transactions conducted by the teller to a back office location;

(e) generating second transaction data reflecting information contained on the paper documents; and

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

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

2. The method according to claim 1, wherein the bank teller is located at a bank branch location, the method further comprising the step of transmitting the transaction file to a different location.

3. The method according to claim 1, 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.

4. The method according to claim 3, 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.

5. The method according to claim 4, wherein the consolidation step occurs several times during a business day.

6. The method according to claim 5, 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.

7. The method according to claim 6, wherein steps (c) and (g) occur at the central location.

8. The method according to claim 6 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.

9. The method according to claim 8 wherein the central location is a retail bank central location and wherein the different location is a back office processing location.

10. The method according to claim 4, 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.

11. The method according to claim 1 wherein the transaction data in the transaction file reflects less than all of the banking transactions conducted by the teller.

12. The method as set forth in claim 1, further comprising the step of:

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

13. The method as set forth in claim 12, wherein the portion of the first transaction data is a dollar amount associated with the financial transaction.

14. The method as set forth in claim 1, wherein the step of generating the second transaction data comprises the step of imaging the paper documents.

15. The method as set forth in claim 1, wherein the step of generating the second transaction data comprises the step of reading Magnetic Ink Character Recognition (MICR) data contained on the paper documents.

16. The method as set forth in claim 1, 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.

17. The method as set forth in claim 1, wherein there are paper documents associated with at least some of the financial transactions performed by the teller, the method further comprising the step of grouping the paper documents according to a type of the transaction corresponding to the paper document.

18. The method as set forth in claim 1, 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.

19. The method as set forth in claim 18, further comprising the steps of:

generating a teller aggregate dollar value of financial transactions conducted by the teller;

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

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

20. The method as set forth in claim 1, wherein the step of electronically capturing the first transaction data further comprises the step of reading Magnetic Ink Character Recognition (MICR) data contained on paper documents.

21. The method as set forth in claim 1, 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.

22. The method as set forth in claim 1, wherein there are a plurality of tellers, 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 the plurality of tellers.

23. The method as set forth in claim 1, wherein the processing of step (d) includes account reconciliation processing.

24. The method as set forth in claim 1, wherein the processing of step (g) includes posting of the financial transactions.

25. The method as set forth in claim 1, wherein the processing of step (g) includes proof of deposit processing.

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

electronically capturing first transaction data reflecting transactions processed by a teller;

storing the first transaction data in an electronic transaction file;

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

forwarding paper documents associated with the transactions conducted by the teller to the back office;

reading the first transaction data from the electronic transaction file;

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

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

performing financial processing using the first and second transaction data.

27. The method as set forth in claim 26, further comprising the step of:

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

28. The method as set forth in claim 27, wherein the portion of the first transaction data is a dollar amount associated with the transaction.

29. The method as set forth in claim 26, wherein the step of generating the second transaction data comprises the step of imaging the paper documents.

30. The method as set forth in claim 26, wherein the step of generating the second transaction data comprises the step of reading Magnetic Ink Character Recognition data contained on the paper documents.

31. The method as set forth in claim 26, 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.

32. The method as set forth in claim 26, further comprising the step of grouping the paper documents according to a type of the transaction corresponding to the paper document.

33. The method as set forth in claim 26, further comprising the step of maintaining, at the back office, a back office aggregate dollar value of financial transactions contained in the transaction data.

34. The method as set forth in claim 33, further comprising the steps of:

generating a teller aggregate dollar value of financial transactions conducted by the teller;

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

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

35. The method as set forth in claim 26, wherein the step of electronically capturing the transaction data further comprises the step of reading the Magnetic Ink Character Recognition data contained on paper documents.

36. The method as set forth in claim 26, 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.

37. The method as set forth in claim 26, wherein there are a plurality of tellers, 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 the plurality of tellers.

38. A system for processing banking transactions conducted by a teller, at least some of the transactions having paper documents associated therewith, the system comprising:

a teller workstation, the teller workstation electronically capturing first transaction data reflecting transactions processed by a teller;

a memory coupled to the teller 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.

39. The system according to claim 38, further comprising a plurality of teller workstations at least one bank branch location.

40. The system according to claim 39, wherein the plurality of teller 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 teller workstations located at a bank branch location, the remote processing facility being coupled to each of the memories.

41. The system according to claim 40, wherein the remote processing facility is coupled to the memories through a telecommunications line.

42. The system according to claim 40, wherein the remote processing facility is coupled to the memories through a common memory.

43. The system as set forth in claim 38, wherein the back office workstation includes a system for imaging the paper documents.

44. The system as set forth in claim 43, wherein the back office workstation includes a Magnetic Ink Character Recognition (MICR) reader.

45. The system as set forth in claim 38, wherein the teller workstation includes a Magnetic Ink Character Recognition (MICR) reader.