The goal of both these efforts is to reduce the processing time to clear items at the Federal Reserve and reduce check handling and transportation costs. Up until now, the delays of implementing ECP and EPIC have been attributed to Y2K concerns, regulatory uncertainties about the legal status of electronic documents, and consolidation in the banking industry. However, in December, the Federal Reserve modified Regulation CC, which governs the availability of funds and collection of checks, allowing banks and credit unions to use electronic images instead of paper returns to pilot electronic return systems. Under the old system, financial institutions paid 85 cents per photocopy request. Now, under EPIC, copies of items are free for up to three days.
Credit unions are now in a position to use technology that banks have been developing for years.
Whether items were captured electronically, either in-house or at a service bureau, the credit union has now eliminated a bulky Microfiche process and thereby set in motion the ability to research and handle member share draft questions while the member is still on the telephone. Copies of specific share drafts can be viewed on the PC screen, printed out, and faxed or mailed to the member if necessary. The image of the share draft could be e-mailed. This same technology can be used to improve member statements. Imagine the credit union member receiving a statement that included picture images of share drafts, thereby reducing calls from members regarding their statements.