Report

Lockbox Market Navigator Report

Lockbox Services Still Serves a Critical Function as Check Volume Persists. Banks Now Weigh Outsourced, Hybrid, and In-House Models.
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Banks and credit unions that offer lockbox services face margin pressure on check processing, even though it remains a critical service. Check volume fell 46% from 2015 to 2024, per Federal Reserve and Datos Insights data, but the average check rose to US$2,653.

Even though the economics of check processing is shifting the lasting value lies in capturing and delivering payment data. Matching payments to open invoices is the heaviest receivables cost, and vendor solution providers differ most there.

This report helps banks and credit unions short list lockbox providers. Banks weigh five criteria: operating model flexibility, control and assurance, integration with bank systems, configuration ownership, and resilience and roadmap. Use them to match providers to your operating model and integration needs.

Clients of Datos Insights’ Commercial Banking & Payments practice can download this report.

The topics covered include:

  • What is happening with check volume? Check volume fell 46% from 2015 to 2024, while average check value has increased, while check value fell 6%. The report explains what that means for bank’s that offer lockbox services and lockbox vendors.
  • How do banks choose a lockbox provider? Banks weigh five criteria, from operating model flexibility to resilience and roadmap, and the report profiles five providers against them.
  • Should banks outsource lockbox processing? Outsourcing can lower unit costs and free staff from technology upkeep, but banks give up some control over service quality and turnaround.

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