Lockbox Operations
CHALLENGE
One of the top 8 financial institutions in the U.S. was searching for opportunities to maintain its competitive edge in a continuously evolving and demanding marketplace. Extensive resources were being pulled away from its core banking operations to manage its inhouse lockbox processing activities, spread across six different cities.
At the same time, the bank was struggling to keep up with emerging technologies and the latest industry best practices, while also trying to improve customer retention and acquisition rates through exceptional customer service. Having outsourced other onsite operations to Exela for 30 years, the bank wanted to take the next step towards total reallocation of resources. Customer data security and privacy were additional considerations for the bank.
SOLUTION
In order to reallocate valuable resources and manpower to upgrading and expanding their core offerings, the customer enlisted Exela to oversee and execute all aspects of their Lockbox operations across six locations. Exela worked with the customer to facilitate a smooth transition, utilizing existing facilities and equipment. As part of the end-to-end Lockbox solution, Exela manages mail retrieval, image and data capture, archival, delivery, remittance, and the secure transfer of customer information.
To complete the total transfer of Lockbox operations, Exela added over 600 onsite bank employees to its workforce. This is in addition to the more than 1,500 employees that were re-badged during this partnership. To ensure a successful handoff, the following procedures were completed prior to implementation:
- Exela collaborated with bank staff to determine important goals for the transition process.
- A transition team by working with Exela’s Human Resources and Recruiting departments was established.
- Implemented peer to peer support and knowledge transfer programs for re-badged employees
- Scheduled regular cadence and toll-gate employee reviews
Business continuity is especially critical in the financial industry, so Exela also worked with the customer to develop a robust Disaster Recovery/Business Continuity Plan, including establishing recovery procedures and recovery time objectives, putting a communication plan and prioritization strategy in place, and creating a SharePoint team site for centralized communication. Not only did the partnership with Exela lead to a cost savings of $40 million over the last 10 years, but the bank also achieved 99% of its performance goals related to the Lockbox solution. Leveraging the resources and expertise of an established Lockbox provider has allowed the bank to dedicate its operations to the development and delivery of core banking products, while improving customer retention through exceptional service.
Benefits
- $40 million in cost savings over 10 years
- Minimal customer investment in equipment ownership and maintenance
- Continuity of labor and employee wages
- Mitigation of privacy and information security risk
- Opportunity for future process improvement and cost-savings
- High level of processing accuracy
- Consistency of workflows across bank sites