Regions Bank said it is testing image-based check processing software from NCR Corp., Dayton, Ohio.
Edward A. Solomon, senior vice president at Regions, said an imaging system could cut check processing costs by as much as 50%.
NCR's software would be used in proof-of-deposit operations. Mr. Solomon said the bank would also develop new fee-based products and services and an image-based storage and retrieval system.
Officials at the $21 billion-asset bank said it will buy the software, called ImageMark, if it meets certain processing milestones. The bank processes about 32 million items per month. Terms of the pending deal were not disclosed, but Mr. Solomon said the system would pay for itself within three years.