Sample Paper on Citibank and Magnetic Ink Character Recognition Code

Magnetic Ink Character Recognition Code technology (MICR code)

Data capturing is an indirect way of inputting the data by undertaking a different but related activity. There are numerous modern methods of capturing data but for the emphasis on this study Magnetic Ink Character Recognition Code, which is abbreviated simply as MICR code would be considered (Jackson, 2013, November 19). Magnetic Ink Character Recognition Code is a technology that is used for character recognition especially by the banking industries. Mainly, Magnetic Ink Character Recognition Code assists the banking industry in processing as well as clearing of documents and cheques.

The idea behind its usage is that the original documents that are to be verified must contain a unique line called MICR line. The line in the original document is drawn using a special ink that is sensitive to the magnetic field. Consequently, the Magnetic Ink Character Recognition Code technology allows direct scanning and reading of the information on the data collection device. In the banking industry, the following information can be obtained the help of the Magnetic Ink Character Recognition Code: bank account number, the bank code, the cheque amount, the check number, together with the control number. An organization that has successfully used this technology is the Citibank (Schlender, 2011, June 7).

Citibank

Citibank is one of the consumer divisions of the larger, financial services multinational Citigroup. It was the former City Bank of New York that was formed in the year 1812. Citibank operates in over 36 countries where they have a massive 3,777 branches. Citibank has embraced and incorporated the use of the Magnetic Ink Character Recognition Code in its operations. Before the incorporation of the Magnetic Ink Character Recognition Code technology, Citibank used to process and clear cheques manually with the help of either the Sort-A-Matic or Top Tab Key method. This method proved not only to be slow but also to be inaccurate. In addition, the manual process of cheque clearance was also very expensive. Furthermore, the manual method used to be slow hence could not clear large volumes of documents (Baron, 2012).

However, with the embracing of the Magnetic Ink Character Recognition Code, Citibank has managed to process and clear large volumes of cheques, faster and more accurately. As a result, the Citibank has immensely benefited from this technology because it has reduced the overall cost of clearing and processing cheques together with other documents. Consequently, the bank has been able to serve very many customers that have contributed to the significant amount of the profit that the Citibank is currently experiencing. Apart from the benefiting from the profit generated from the use of the technology, the Citibank has also avoided losses that are related to the forgery. Moreover, incorporation of this technology has also enabled the Citibank to join other financial institutions in achieving the much-strived commercial uniformity (Jaya, 2013).

Currently, the Citibank is enjoying more and accurate information concerning their clients as well as their documents. This is because the technology has enabled the bank to incorporate the information pertaining to their records and the customers in the pool of data. Magnetic Ink Character Recognition Code contains MICR line that Citibank has used to ease the identification and the verification of the documents. Specifically, the bank has been able to compute the following information on a click of a button. This is unlike in the past when this information was unavailable, and the bank had to rely on the scanty and unreliable manual information: bank account number, the bank code, the cheque amount, the check number, and the control number (Pratt, Cleveland & Huertas, 2010).

References

Baron, D. (2012). Strategy, Organization and Incentives: Global Corporate Banking at Citibank.

Industrial and Corporate Change, 3(6), 1-36.

Jackson, M. (2013, November 19). Data Capture Software and Hardware. Retrieved April 16,

Jaya, J. (2013). Securing Cloud Data and Cheque Truncation System with Magnetic Ink

Character Recognition Code technology (MICR code). International Journal of Computer Applications, 6(2), 16-21.

Pratt, J., Cleveland, H., & Huertas, T. (2010). Citibank, 1812-210. The Business History Review,

3(8), 504-504.

Schlender, B. (2011, June 7). Know all about MICR code. Retrieved April 16, 2015, from

http://www.rediff.com/money/report/perfin-know-all-about-micr-code/20100105.htm