Newgen's solution has enabled the bank to become compliant as per the KBA mandate for the cheque clearance process. It has also offered faster TAT by processing large numbers) of inward and outward cheques. It has allowed the bank to achieve lower operational costs. The Newgen solution not only provides a holistic view of the business but also supports the audit and compliance features.

1. Case Study BANKING
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
Implementation of Image-based
Cheque Clearance
For a Leading Commercial Bank in Kenya
Overview
The bank commenced the operations in March 1993 and completely
became a commercial bank in January 1996. In a recent survey by
Market Intelligence, the bank is ranked amongst the top 10 banks in
Kenya. It is not only committed to good Corporate Governance but also
maintains Statutory Capital Requirements. The bank has won the FIRE
(Financial Reporting Award) five times. Moreover, the bank's results
show the effectiveness of staff training and development along with the
staff appraisal against the defined annual objectives.
The bank is one of the most The Challenge
reputed commercial banks in The bank observed that the existing clearing system was unable to
handle the processes efficiently. It required a solution to easily
Kenya. It is well committed in
accommodate the clearing process. The bank also experienced that the
providing good Corporate
existing clearing system did not provide the flexibility for any changes
Governance and maintains in the system and was unable to meet the bank's requirements.
Statutory Capital requirements.
The bank was looking for a solution that could enable flexibility in
designing the processes as per the specific requirements. Furthermore,
the bank required an end-to-end solution (inclusive of Document
Management System) that would include a system for Archival for all
documents. Apart from the above requirements, the bank needed support
for foreign clearing instruments.
The bank intended to go live by Oct 2010 and wanted to procure a new
solution in advance to be ready with the new cheque clearing process
before it became a mandate. The bank also planned to manage and
centralize the clearing operations.
The Newgen Solution
To meet its requirements, the bank analyzed the available solutions and
finally chose Newgen's Cheque Truncation System (CTS, ChequeFlow).
TM TM
The ChequeFlow comprises of OmniFlow for process automation,
TM
OmniDocs as underlying document management system and
OmniCaptureTM for scanning and indexing.
The Newgen solution was implemented for both the Inward Clearing as
well as Outward Clearing. The solution takes care of 2000 inward
cheques and 2500 outward cheques on a daily basis. The solution is also
being used for Electronic Funds Transfers and Direct Debit processing.
The cheques presented to the bank are captured as electronic images
serving as replacements for the physical cheques. The images are
www.newgensoft.com

2. Case Study BANKING
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
generated as per the specifications of Kenya Bankers Association
(KBA). The Newgen solution captures the extracted data from the
electronic images and ensures cheque validation, technical and signature
verifications with minimal manual intervention.
Thereafter, the bank performs the data entry and authorizes the
instruments for sending to the Central Bank. The Newgen solution also
extends support to Image Based processing for Inward clearing process.
In this process, the bank receives the Inward instruments from the
Central Bank, which are scanned through the application and a
Technical & Signature Verification is undertaken.
Next, the Newgen application provides a return file to be sent to the
Clearing House. Once the mandate is raised by the KBA, the bank is
able to upload the Inward File directly as received from the Clearing
House rather than scanning the Inward instruments. Moreover, as the
processes are built on the Business Process Management (BPM)
“Newgen’s solution has enabled platform, Electronic Fund Transfer (EFT) and Direct Debit processes are
the bank to become compliant as also designed around the Cheque Truncation Process. Through the EFT
per the KBA mandate for the processes, the bank users are able to input the Account Numbers and
cheque clearance process. It has details based on the standing instructions. Similarly, in case of EFT
also offered faster TAT by Credits, the bank users are able to upload the file as received from the
processing large numbers) of Clearing House by using the Newgen Application.
inward and outward cheques. It
has allowed the bank to achieve The proposed solution is well integrated with the bank's Core Banking
lower operational costs. The System - Flex Cube, used for the clearing processes.
Newgen solution not only
provides a holistic view of the The Benefits
business but also supports the The Newgen solution provided the following benefits to the bank:
audit and compliance features.” ! With the deployment of the Newgen solution, the bank operations
became centralized
! Scanning and processing of outstation cheques helped achieve lower
operational costs by reducing the courier charges and processing time
! The Newgen solution requires minimal manual intervention for image-
based cheque clearance and hence effectively reduces the cheque
clearing time
! The bank gains competitive advantages by achieving higher customer
satisfaction due to the reduced Turn Around Time (TAT). By using the
Newgen Solution, the bank is able to process 2000 inward cheques and
2500 outward cheques on daily basis
! The Newgen solution also automates the warrant processing and cash
management of the cheques, which are tightly coupled with the cheque
clearance process
! With extensive reporting facility for real-time tracking and visibility of
cheques, the Newgen solution provides a holistic view of the business
! All the cheques are archived in the underlying Newgen Document
TM
Management System - OmniDocs , which ensures faster searching and
retrieval of documents
! The Newgen solution has an audit trail facility, which provides support
for the audit and compliance
www.newgensoft.com

3. Case Study BANKING
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
About Newgen
Newgen Software Technologies Limited is the market leader in Business
Process Management (BPM) and Enterprise Content management (ECM),
with a global footprint of 800 installations in over 40 countries with large,
mission-critical solutions deployed at the world's leading Banks,
Insurance firms, BPO’s, Healthcare Organizations, Government, Telecom
Companies & Shared Service Centers.
Newgen Software has been positioned in the Magic Quadrant for Business
Process Management (BPM) and Enterprise Content Management
(ECM). The company has been recognized by distinguished analyst firms
like Frost and Sullivan as A 'Hot Company to Watch for' in their global
ECM Market report, 2009 and by IDC in its exclusive report “Newgen
Software: Global Leader in Business Process Management and Document
Management Solutions”. Newgen is a winner of prestigious awards, such
as the CNBC-TV18, “Emerging India Award 2008”.
With HSBC and SAP investment, Newgen is one of the rare product
company to have backing of both leading financial and technology
companies of the world. Newgen’s Quality Systems are certified against
ISO 9001:2008 and Information Security Standard, ISO 27001:2005.
Newgen has been assessed at CMMi Level3.
Newgen prestigious clients include HSBC Bank, Deutsche Bank, Hua Nan
Bank, ABN Amro Bank, ICICI Bank, IDBI Bank, State Bank of India, ING
Vysya Bank, CitiFinancial, RAK Bank, Bank of Tanzania, Max New York
Life, Bajaj Allianz, Royal Sundaram Alliance, Unilever, Philips, GE
Countrywide, EXL, Satyam Nipuna, iGATE, Core 3, Ranbaxy, GSL, Kenyan
Airways and SEC Philippines.
Corporate Office US UAE
Newgen Software Technologies Ltd. Newgen Software Inc.. Newgen Software Technologies Ltd.
A-6, Satsang Vihar Marg, 1364 Beverly Road, Suite 300 YI 46, PO Box 120586
Qutab Institutional Area, McLean, VA 22101 Sharjah Airport International Free Zone
New Delhi - 110 067 INDIA Tel: +1-703-439-0703 Sharjah, United Arab Emirates (UAE)
Tel: +91-11-4077 0100, 2696 3571 Email: usa@newgensoft.com Email: emea@newgensoft.com
Fax: +91-11-2685 6936
Email: corpmktg@newgensoft.com UK
Newgen Software Technologies Ltd.
www.newgensoft.com
68 Lombard Street,
London EC3V, 9LJ
BK-CS-IB-CTS
Tel: +44-207-868 1736
Mobile: +44-78154 96669
Email: intmkt@newgensoft.com