Magazine article American Banker

2 More Banks on SVPCO Network, Minus Client Lists

Magazine article American Banker

2 More Banks on SVPCO Network, Minus Client Lists

Article excerpt

Two more banking companies have begun exchanging check images across the network developed by Clearing House Payments Co.'s SVPCO, but they are skipping a step that others have used to validate the system.

National City Corp. and Union Bank of California transmitted their first images across the SVPCO Check Image Exchange Network last week.

The five other banks that use the network have limited their exchanges to checks from fixed lists of customer accounts. In contrast, National City and Union Bank are using routing and transit numbers, which can define bank units down to an individual branch, to determine which checks will be transmitted. Once the two companies approve a routing and transit number, every check from every account within that number will be sent across the network.

Connie Rose, a senior vice president at National City, said its nightly volume on the network is quite low (about 200), because the two companies have no overlapping markets, and because National City is sending only images from its Michigan banking operation.

The Michigan operation has 20 distinct routing numbers, and "we actually opened up an entire bank," but it is one of the smallest of the Cleveland company's five banks, Ms. Rose said.

National City will begin sending images from its other banks to Union Bank over the next 90 days.

National City is processing the incoming images electronically.

Bill Christensen, an executive vice president at Union Bank of California, said it is transmitting images from its California operation, its largest, but not from its Northwest operation.

However, Union Bank is printing out the images from National City as image replacement documents for settlement, according to Mr. Christensen, who said he was cautious about switching from settling with paper IRDs to electronic files. …

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