Michigan National Corp. said it has saved $3.2 million since 1992 using home-grown software that reduces tellers' handling of paper.

The software lets a teller pass a check being cashed or deposited through a device that reads the check's magnetic ink character line. This line contains account information, which lets the teller know where the money should be deposited or drawn from.

Culling the account information directly from the magnetic ink line eliminates the need for deposit slips or internal cash in/cash out slips, which are expensive to process.

Since its introduction, the software has enabled Michigan National to eliminate 20 staff positions and 20 proof of deposit machines in its check- processing unit.

It has also reduced the number of items handled in its check processing area from 28 million to seven million.

After an internal study found that branch personnel were spending inordinate amounts of time processing paper, Michigan National created the software to cut costs and streamline back-office operations, said Mickey Brown, senior vice president.

The software has generated revenue for the $8.7 billion-asset bank in Farmington Hills.

In March, Michigan National sold the rights to the software program to Antinori Software Inc. of Atlanta. The bank earns royalties when the product is sold to other banks.

Crestar Financial Corp. in Richmond, Va., is using the system. Several other banks are in talks to buy the software, said Michael Israel, president of Antinori.

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