October 19, 2015
Bank of America Merrill Lynch Introduces Digital Processing for Wholesale Lockbox
First of Its Kind Business Model Offers Improved Accuracy and Speed
NEW YORK – Thousands of companies across the world, and particularly in the United States, continue to receive large volumes of check payments, even as electronic payment options grow in popularity. Today, Bank of America Merrill Lynch (BofA Merrill) is pleased to announce that its U.S. Wholesale Lockbox service, which collects and processes these payments, has been fundamentally transformed, enabling greater accuracy and speed. This can mean improved reconciliation of receivables for clients.
The improvements are a result of Bank of America Merrill Lynch’s patented technology and a comprehensive re-engineering of the entire workflow. Central to this transformation is accelerated image capture, which eliminates traditional paper based processing and mitigates associated risk. These changes breathe new life into a core treasury management service.
“While the number of checks in the United States has decreased in recent years, there’s no doubt that paper payments will be here for the foreseeable future. The digitization of lockbox paper documents and automated processing reduces friction in the system and improves our clients’ ability to manage their accounts receivables and thus, their working capital,” said Rodney Gardner, head of Global Receivables in the Global Transaction Services business at BofA Merrill.
Each month, 17 million checks and 60 million remittance documents are sent to the bank’s lockboxes around the country for processing on behalf of our clients. Traditionally, after arriving at a lockbox, the paper payments and documents would go through manual steps before funds were credited and remittance data reported back to clients. BofA Merrill saw an opportunity to redesign the process and improve the customer experience. Through considerable investment, Global Transaction Services has launched this new business model confirming our long-term commitment to providing wholesale lockbox services to our clients.
“We have invested in innovative, industry-leading technology and have recreated the lockbox process—in short, we’ve reinvented the business,” added Bill Pappas, chief information officer of Global Wholesale Banking Technology and Operations and Global Markets Operations and Middle Office at Bank of America.
Below are some of the highlights of the patented wholesale lockbox process:
- Checks and remittances are now moved through the process as images, not as paper.
- Required tasks such as sorting to the individual lockbox, validating the payee and authenticating the check are now done electronically.
- Enhanced digital images of the payments and remittance data are now available to clients via the bank’s online banking channel, CashPro Receivables®, or through scheduled transmission services.
BofA Merrill has more than 70 years of experience providing lockbox services, and today operates lockboxes in major cities across the United States and Canada. The bank also provides lockbox and other check collection services in multiple international locations.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,700 retail financial centers, approximately 16,100 ATMs, and award-winning online banking with 32 million active users and more than 18 million mobile users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
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