Check Processing as an Information Management Activity: Critical Review and Research Agenda
27 Pages Posted: 31 Oct 2008
Date Written: August 1989
Current management science models fail to adequately recognize that treasury management related tocheck payments has largely become an information management activity. Check processing operationslack the flexibility to capture information which can be used by treasury managers to make the mosteffective utilization of check-related funds. This argument is developed by examining the fit betweenmanagement science models and check processing practice in the U.S. banking industry, as well as at theFederal Reserve Bank, in view of the changes that information technology has wrought and the problems ithas the potential to solve. We critique models for inbound and outbound check processing and treasurymanagement for checks, and conclude that models which link check processing and treasury managementmodels hold out significant promise for improving management control.
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