Mellon Global Cash Management announced that it has installed a check imaging system from International Business Machines Corp. for its proof of deposit operation.

The bank's installation and use of the system, called High Performance Transaction System, marks the first time it is being used for proof of deposit processing in the United States.

David Leach, manager for check processing at the unit of Pittsburgh-based Mellon Bank Corp., said the system is allowing the operation to operate more efficiently as it processes over 200,000 checks daily.

"We are working with the same volume as before, but we are able to process the checks quicker and reduce the time it takes to key in the items," he said. "The system has allowed us to improve work flow and move the items out the door quicker."

The system uses imaging technology to recognize and capture check data and process digitized images, rather than the paper items. The system reduces the amount of paper associated with the operation and allows operators to enter proof of deposit information more quickly.

Since being installed early this year it has allowed the bank to have a 53% recognition rate - one of the highest in the industry.

Mellon officials said the system has reduced the number of checks that are manually keyed in by about 50%.

Robert Stasik, executive vice president and head of the cash management unit, said the system is an "important" step in the enhancement of the cash management services it is able to provide customers.

"The system will allow us to expand customer services available through image processing, while increasing our level of productivity and reducing costs," he said.

Mellon, which has assets of $37 billion, first used imaging technology in 1978 when it piloted an early image-based transaction processing system for proof of deposit operations.

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