New pressures bring new priorities
In a recent webinar with American Banker and Iron Mountain, CheckAlt’s EVP Lynn Dufrane said, “We’re at an inflection point. The systems that worked even a few years ago won’t necessarily carry institutions forward.” The external pressures are intensifying:
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Check fraud increased 84% between 2021 and 2023.
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Operational costs are going up, while experienced staff turnover accelerates.
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Client and regulatory expectations are shifting toward faster, digital-first payment operations.
For payment processing leaders like CheckAlt and other financial institutions, this isn't about eliminating checks overnight. It’s about building operational flexibility that meets clients where they are and moves faster when market forces demand it.
Related: The Great Realignment: How financial institutions are rethinking payment processing
Where do financial institutions go from here?
Top banks and credit unions are proactively reducing their reliance on checks, anticipating the eventual decline in usage. Here are the top four steps they are taking now to secure their future in payment processing:
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Digitizing check processing to speed cash flow and reduce manual intervention.
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Deploying SaaS-based receivables tools and APIs to enhance scalability and transparency.
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Outsourcing lockbox operations to reduce overhead while maintaining strategic control.
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Streamlining reconciliation and digitizing receivables to accelerate cash application and reduce manual work.
The bottom line? It’s about protecting the revenue streams tied to checks while future-proofing operations.
Scaling and smarter check handling
Institutions today need solutions that can:
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Scale up rapidly to meet growth, new client demands, seasonal fluctuations, or M&A-driven volume surges.
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Scale down efficiently as paper check volumes decline or branches consolidate.
Outsourcing components of receivables processing—whether through lockbox, SaaS, or hybrid models—gives financial institutions the ability to flex without locking into rigid, resource-heavy structures. Modernizing receivables isn’t about abandoning checks. It’s about handling them smarter, faster, and more securely.
Leading institutions are using automation and strategic outsourcing to improve check processing efficiency, without sacrificing control or customer service. Embedding smarter automation, digitization, and reconciliation tools allows institutions to manage checks more profitably, even as digital payment volumes grow.
It’s time to rethink receivables
Although the phaseout of federal paper checks may impact only a fraction of total check volume, the market shift toward digital-first receivables is unmistakable.
Institutions that choose to modernize their payment processing strategies now—through smarter check handling, scalable outsourcing, and flexible technology—will be better positioned to lead the future of commercial payments tomorrow.
Get a recap of the webinar with our partners at American Banker and CheckAlt to learn more about future-proofing your payment operations.
Iron Mountain for payment management solutions
Iron Mountain’s comprehensive products and integrated solutions provide seamless receivables management across payment channels and empower financial institutions, fintechs, and businesses to streamline processing and drive growth.
Leveraging our unparalleled footprint of Digital Supercenters, Iron Mountain provides outsourced lockbox services (upfront mail/check receipt & digitization) and simplified operations with intelligent document processing (IDP) to extract and validate data.
Together, we deliver unmatched scale, security, and efficiency for your business.
Contact us to speak with a representative today.
