Challenge
One of the largest financial institutions in the U.S. had been handling its own remittance processing—requiring more than 600 dedicated employees across six locations to process more than 170 million transactions annually. Despite a strong commitment to their workforce, market realities and financial pressures had forced them to consider resource allocation, including the possible divestiture of peripheral processes (such as remittance). Seeking insight and ideas at this critical juncture, they turned to Exela, which had already been providing them with services for more than 25 years. In fact, Exela already had 432 employees working at the institution’s various locations, engaged in the processing of the institution’s business, including mail and print operations.
Solution
Exela offered to take ownership of the financial institution’s full array of remittance processing operations, including the employment of the more than 600 employees involved in those operations, while bringing to bear Exela’s state-of-the-art payment and processing solutions. The financial institution made the wise choice to leverage Exela’s proven experience and expertise in executing large, onsite remittance operations along with its versatile service-delivery model, technologically-advanced applications, and commitment to the career continuity career continuity and employee benefits.
Specifically, the scope of agreement between Exela and the financial institution includes:
- Lockbox Processing - Exela is charged with overseeing and executing all aspects of the firm’s Lockbox operations across six locations, utilizing existing facilities and equipment.
- Data Management - Exela manages mail retrieval, image and data capture, archival, delivery, remittance, and the secure transfer of customer information in compliance with applicable privacy and other laws.
- Transfer and Transition of Employees - Of the 645 employees offered employment by Exela, 98% accepted, and turnover has been low (averaging around 3%). This can be attributed, at least in part, to Exela’s commitment to keeping the employees “whole” by maintaining their salary, bridging their years of service, and providing peerto- peer support and other rebadging-related transition services.
Results
As of the first 9 months of 2019, the institution had already realized $318,000 in savings (representing nearly $40,000 per month in savings). The partnership has been positive and profitable, with virtually all performance goals achieved.
Benefits
$318,000
in savings realized
$40,000
per month in savings
98%
of performance goals achieved
