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

• US 8,370,232 B2
• Filed: 11/18/2005
• Issued: 02/05/2013
• 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: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Riehl, Louis, Anderson, George
• Primary Examiner(s): Colbert, Ella
• Application Number:
  US11/281,436
• Publication Number:
  US 20060080255A1
• Time in Patent Office: 2,636 Days
• Field of Search: 705/35, 705/36, 705/39, 705/30, 705/44, 705/1, 705/42, 705/45, 235379-381, 715/210
• 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 computer-implemented method for processing banking transactions including paper documents, the method comprising the steps of:

(a) capturing first transaction data electronically from at least one paper document associated with each transaction, the first transaction data including at least one of magnetic ink character recognition data and an amount of each transaction, captured electronically during banking transactions conducted at a point of contact associated with a branch bank location;

(b) storing the first transaction data in a transaction file on a branch host computing system;

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

(d) transmitting the transaction file to a back office location computing device;

(e) forwarding the at least one paper document associated with each of the banking transactions conducted at the point of contact to the back office location computing device;

(f) generating, at the back office location, second transaction data reflecting information associated with the at least one forwarded paper document for each transaction, wherein generating the second transaction data comprises the step of imaging the at least one forwarded paper document associated with each transaction;

(g) linking the first and second transaction data with respect to at least one of the transactions; and

(h) processing the first and second transaction data, using computer processing components of the back office location computing device, to complete the banking transactions, the processing of the first and second transaction data not including magnetic ink character recognition line data completion and amount key entry unless an exception item is detected during the processing of the first and second transaction data.

2. The method according to claim 1, 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.

3. The method according to claim 1, wherein there are a 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 at least twice 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 at the point of contact.

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 reading the Magnetic Ink Character Recognition (MICR) data.

15. 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.

16. 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.

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

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

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

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

21. A computer-implemented method for processing banking transactions including paper documents, the method comprising the steps of:

capturing first transaction data from at least one paper document associated with each transaction, the first transaction data including at least one of magnetic ink character recognition data and an amount of each transaction, the first transaction data reflecting transactions processed at a point of contact, wherein there are a plurality of points of contact and 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;

storing the first transaction data in at least one electronic transaction file on a branch host computing system;

transmitting the at least one electronic transaction file to a back office computing device in a back office location;

forwarding the at least one paper document associated with each of the transactions conducted at each point of contact to the back office computing device;

reading the first transaction data from the at least one electronic transaction file;

generating, at the back office location, second transaction data reflecting information associated with the at least one forwarded paper document for each transaction, wherein generating the second transaction data comprises the step of imaging the at least one forwarded paper document associated with each transaction;

linking the first and second transaction data with respect to at least one of the transactions; and

performing financial processing, using computer processing components of the back office computing device, with the first and second transaction data, the processing of the first and second transaction data not including magnetic ink character recognition line data completion and amount key entry unless an exception item is detected during the processing of the first and second transaction data.

22. The method as set forth in claim 21, further comprising the step of:

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

23. The method as set forth in claim 22, wherein the portion of the first transaction data is a dollar amount associated with the transaction.

24. The method as set forth in claim 21, wherein the step of generating the second transaction data comprises the step of reading the Magnetic Ink Character Recognition data associated with the data.

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

26. The method as set forth in claim 21, further comprising the step of maintaining, at the back office, a back office aggregate dollar value of financial transactions contained in the transaction data.

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